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South African Data Centre Market

Security risks and compliance critical in the adoption of data centre services in South Africa

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2014-04-11 22:15:03 - South African Data Centre Market - a new market research report on

The South African data centre market is in its growth stage and is expected to grow strongly in the next few years due to outsourcing trends, declining prices, and compliance requirements. From a business perspective, outsourcing is becoming more and more mainstream, as enterprises choose to focus on their core business and outsource less mission-critical systems, including data centre operations. Furthermore, the low availability and high cost of hiring a skilled workforce in South Africa are setting up challenges for operating data centres internally and hence spurring the demand for outsourced data centre services.
Increased proliferation of data centre services, notably cloud computing, is expected to lead to greater uptake of services and hence growth of the data centre market. Cloud



computing and virtualisation are some of the top trends that will drive growth in the South African data centre market between 2012 and 2018. As basic hosting and/or co-location services become more and more commoditised, service providers will look to provide more higher-margin services, such as virtualised services and cloud computing, which will emerge as key areas of future growth.
Data centre providers are shifting focus towards higher-margin managed hosting services. Cloud computing will become the most important driver of data centre services in the next 5 years. Security risks and compliance will be critical considerations in the adoption of data centre services. While public clouds suit SMEs, large enterprises need to consider private and/or hybrid cloud offerings. Outsourcing of data centre services could reduce an enterprise´s carbon footprint and offer tax benefits.

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