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Australian datacentre investments rocket due to latest enterprise IT trends

The increased use of big data, analytics, cloud and mobile technologies in Australian enterprises is driving spending in datacentre services

IT trends such as big data, internet of things (IoT) analytics and mobile working are forcing organisations in Australia to invest in datacentre services with the value expected to be more than AUD 2bn by 2021.

These tech trends require more bandwidth, storage, computing power and security, which according to Frost & Sullivan is driving the datacentre services market.

Frost & Sullivan’s Australian Data Centre Services Market 2016 report revealed that spending on datacentre services in Australia grew by 18.3% in 2015, reaching a total of AUD 976m. The report predicted that the market will grow on average by 12.4% until 2022, reaching AUD 2.05bn by 2021.

Frost & Sullivan Australia and New Zealand ICT practice research analyst Wonjae Shim said organisations outsource datacentre requirements because building and maintaining a captive datacentre is too expensive and time-consuming.

“One of the key growth drivers of datacentre services is the heightened demand for cloud computing, which has resulted in an increasing number of cloud services providers and enterprises in Australia,” he said.

According to recent research by Computer Weekly, around 60% of IT leaders in Australia and New Zealand expect their cloud computing spending to increase in 2016, with hybrid cloud projects a priority.

Shim added that cloud services providers are amongst the largest users of datacentre facilities in the world and this is a catalyst for growth in the datacentre ecosystem, drawing enterprise customers, telcos and IT services firms.

“Enterprise organisations are storing less data on-premise, opting for cloud service providers – so co-location providers' proportion of revenues from cloud services providers is growing,” he said.

There is room for the datacentre services market to grow in the region, continued Shim. “Despite co-location services growing by about 20% over the past five years globally, compared with 3% growth in captive datacentres, the outsourced space constitutes only 24% of total datacentre space available worldwide,” he said.

“This indicates a sizeable growth opportunity – especially in the Asia-Pacific region where outsourced space is at 12.1% of total available datacentre space.”

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