Managed services opportunity in data centre market

A new report from consultants BroadGroup forecasts that managed services will contribute markedly to revenues for data centres...

A new report from consultants BroadGroup forecasts that managed services will contribute markedly to revenues for data centres, more than doubling between 2003 and 2007.

Data Centres Europe, says that that the market is now maturing and by 2007 will be worth €745m by 2007. It says that new and differentiated products and services are shifting the business model away from basic colocation and web hosting. Specifically the report views managed services as a major opportunity for Data Centres.

Data centres’ growth is, according to the report, being fuelled by a number of factors including a broadening of customer base, the provision of managed services, regulatory requirements in the financial services sector, and new conditions emerging for investment in a market that is sufficiently tight to expand. Business continuity and disaster recovery appeared as major concerns for end users. The report also identified a key shift towards utility computing.

However only a small number of Data Centres had so far invested in blade servers, the technology leap required to open new markets in which Data Centres were previously unable to compete. In addition, in the managed services sector, BroadGroup suggests competitive rivalry will emerge with integrators, who hold strengths in customer relationships and architectural solutions.

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