Partners in the datacentre space are set for a series of pay days due to an increase in enterprise demand for such services in Australia.
The thirst for more bandwidth, storage and computing power from big business is at an all time high and is fuelling one of the biggest partner opportunities according to the latest report on the Australian datacentre services market from analyst firm, Frost & Sullivan.
According to the report, the overall market saw annual growth of 18.3 per cent reaching $976 million in 2015, and is predicted to grow at a compound annual growth rate of 12.4 per cent till 2022, with the market reaching $2.055 billion by 2021.
Specifically, co-location and managed hosting revenues were the two areas of opportunity highlighted in the report, with both areas expected to see double digit growth in the next five years.
Frost & Sullivan research analyst, Wonjae Shim, said largely growth in managed hosting was due to more enterprise customers moving maintenance and control of their IT to managed hosting providers due to cost and time constraints.
“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 added.
“Cloud services providers are amongst the largest users of data centres 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 in-house, opting for Cloud service providers; so co-location providers proportion of revenues from cloud services providers is growing.”
Shim added that despite co-location services growing about 20 per cent over the past five years globally, compared to three per cent growth in captive datacentres, the outsourced space constitutes only 24 per cent of total datacentre space available worldwide.
“This indicates a sizeable growth opportunity – especially in the Asia-Pacific region where outsourced space is at 12.1 per cert of total available datacentre space.”
Datacentre power density was another market trend the report identified. It said customers pay for co-location services on a kW rate per rack basis, so cost to the customer is affected by a combination of power consumption and required footprint. As organisations opt for racks at higher compute power, they will still pay proportionate to the amount of power consumed, but at a reduced footprint.
Many datacentre facilities currently run at a facility wide average of 2-3kW, according to the firm, but this is expected to increase significantly as compute power capabilities and efficiencies improve.
By the end of 2016, it predicts the average kW per rack utilisation will reach close to 5kW, with many big enterprise customers with large compute power requirements requesting their infrastructure to run at very high power densities, between 20-30kW in extreme cases.
Due to the ability to add capacity on demand, modular datacentre providers are also becoming increasingly popular amongst Cloud services providers and enterprises with special requirements.
Frost & Sullivan determined that datacentre assets are able to provide stable long term returns due to continued demand, a lack of capital, real estate costs, and highly specialised technologies and personnel.
It said investment in datacentre assets is expected to markedly increase in the short term and the positive long term outlook for these services is likely to encourage private equity investment and buyouts in the sector.