A Data Center is a facility used to house computer systems and associated components (such as network equipment and storage systems). Also called a server farm, it includes supporting equipment, such as backup power supplies, data communication connections, environmental controls (e.g., air conditioning, fire suppression)
The demand for Data Centers has grown exponentially in the recent years due to the increase in demand of data to be stored by the organizations. However, building and managing a new Data Center is a highly complex task, and requires huge capital expenditure. Further, technological innovation leads to fast obsolescence of many hardware and software products. These factors are compelling organizations to outsource all, or part of their Data Center activities to vendors. Reduction in the operational cost, availing Cloud computing service, and access to latest technology outside expertise are some of the major drivers for the growth of the Data Center Outsourcing market.
Unlike in the past, organizations are now engaging multiple vendors for their Data Center Outsourcing related activities. This provides more bargaining power to the organizations, and reduces their dependability on a single vendor. Further, in certain geographic regions, most of the Data Center Outsourcing related contracts are being signed with domestic vendors. For example, in North America, most of the Data Center Outsourcing related activities are being performed by the American companies. Though many of these activities are being performed at offshore locations like India, organizations are preferring to deal with domestic outsourcing partners.
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Global Data Center Network Equipment Market 2008-2012
Global Containerized Data Center Market 2009-2013
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