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EMEA data center services market: 19% CAGR between 2012-2016
Data Center Services Market in EMEA 2012-2016 - a new market research report on 2014-04-29 03:41:01
The EMEA Data Center Services market is to grow at a CAGR of 18.9 percent over the period 2012-2016. One of the key factors contributing to this market growth is the need for advanced data center facilities. The Data Center Services market in the EMEA region has also been witnessing an increasing number of enterprises opting for shorter service contract durations. However, operational challenges caused by using the multiple-vendor approach method could pose a challenge to the growth of this market.
Traditionally enterprises are opting to outsource their data center management to third-party vendors that provide data center services for longer periods, which span close to five years or more. However, there has been a trend of short-term contracts to enable enterprises to gain flexibility in their operations. The contracts are available at lower prices, which is beneficial for them. With many vendors providing data center services, there is increasing competition leading to lowering of costs and also a higher level of service being delivered. The number of long-term contracts is decreasing considerably with only about 20 percent of the contracts spanning above five years. The short-term contracts also allow enterprises to change vendor as and when required.
One of the major drivers in the Data Center Services market in the EMEA region is the need for advanced data center facilities. With the growing complexity of enterprise business, enterprises have a growing need to procure data center services to meet their advanced computational requirements. To meet the growing demand for data center facilities, a number of vendors are entering the market and providing advanced data center solutions. Enterprises are able to procure the services at lower cost compared to internal provisioning of the same services, which is driving higher adoption.
One of the challenges is the multi-vendor approach to data center equipment procurement being followed by enterprises. Growing enterprise requirements are leading to procurement of equipment and solutions to meet their computational needs. With the consolidation of the various facilities into a single centralized location, data center service providers are facing the challenge of efficiently integrating the solutions.
The key vendors dominating this space include Computer Science Corp., Hewlett-Packard Co., IBM Corp., and T-Systems Inc. The other vendors mentioned in the report are AT&T Inc., Atos Origin Inc., Capgemini, Fujitsu Ltd., HCL Technologies Ltd., Logica plc, Siemens AG, Steria SA, Telefonica SA, and Verizon Communications Inc.
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