Is Cloud changing Colocation Data Center Services in India?

There has been a constant shift from hyperspace cloud providers from traditional data center providers. Therefore, there has been a significant change in the dynamics of global colocation data center market. Latest research reports have found out that there has been an acceleration of wholesale data center market in India. However, at the same time there has been slowness in growth of retail colocation. Research reports predict that in the time frame from 2016 to 2017, the percentage growth in wholesale data center solution will be 17.9 per cent. However, the same for retail colocation will be 14.3 per cent in the same time period. Currently, the wholesale data center market is around 25 per cent with the rest 75 per cent is being occupied by the retail colocation services. In 2016 itself the world over market size of colocation reached a massive $33.59 billion. This figure includes both wholesale as well as retail services. In the ongoing New Year 2017, this growth is pegged at 15.2 per cent.

To be very specific in approach, most of the colocation data center market revenue comes from North America, which stands at $13,996 million. It is around 41.7 per cent of the total world revenue. This figure is followed by the Asia Pacific region, which accounts for $11,779 million (around 35.1 per cent). Rest of the market is mainly accounted by Europe, Middle East, and Africa, together accounting for $7,233 million (which is around 21.5 per cent). Latin American countries account for just $587 million, which comes to 1.7 per cent of the total global market pie.

Same is the case of expansion in India. Data center services in India is expanding at a rapid pace, especially when server colocation in India is taken into consideration. There have been multiple reasons for this accelerated growth and that includes the extremely important role played by massive scale public clouds that include Microsoft as well as Amazon. If we consider an example of last year, we find out that over 125MW data center capacity has been signed last year itself and that’s too in the USA only. To keep up with the competition, competitor of Microsoft – Oracle – has leased out over 30MW in the US itself in 2016 across seven wholesale data center.

colocation_data_center

In fact, other players are catching up. More such names that are expanding fast in field of data center services in India and abroad are IBM SoftLayer, Salesforce, Box, and many more.However, these facts and data don’t point out the fact that retail colocation data center market is shrinking. They are also on a positive growth trajectory, to be very specific.

One of the major changes that is being taking place is the focus shift to cloud neutrality from colocation data centers. One of the major geographical importance shifts that is taking place currently is the gradual but consistent shift from North America to Asia Pacific region. Colocation revenue from Asia Pacific region will become 39.2 per cent, thereby overtaking 38.1 per cent market share of North America.

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