The inaugural report from BroadGroup’s datacentre practice into player strategies in the carrier neutral datacentre market in the UK, has revealed the structural changes under way.
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In addition to sustained further growth supported by a migration to third-party outsourcing by large enterprises, the report predicts that although a limited increase in space will become available over the next few years, prices by 2010 will have doubled.
Using material based on primary interviews with the end-user market and vendors, the report underlines what the authors feel is the increasingly difficult task of user companies owning and managing an estimated 1,500 datacentres across the UK, and the reasons why managers are now more actively seeking solutions offered by third-party providers from managed services to full outsourcing.
Yet the conundrum in the UK is that, at a time of increased demand, space availability is extremely restricted. Given lead times, investment cost and business planning, the report
suggests that only 45% more space will actually be available by 2010. Conversely, rack pricing is set to more than double.
BroadGroup claims that its report analyses forensically the origins and influences that provide both opportunities and challenges to datacentres over the next few years. Among the key competitive issues faced by the carrier neutral sector is a shift by carrier owned datacentres into the large enterprise space. It adds that systems integrators, too, pervade the same market space and are often customers of the neutral datacentres.
The report assesses current user requirements; and how easily or not they might be met and also questions the rationale behind the business strategies of carrier neutral datacentres, and whether short-term thinking prevails over a long-term assessment and the issue of price rather than premium.
Finally, the report provides forecasts of space and pricing through to 2010.