Frost & Sullivan: Rising Cost Pressures in Existing Data Center Hubs Shifts Spotlight to New Markets

Feb. 9, 2012 - PRLog -- Kuala Lumpur, Malaysia – The traditional data center hubs of Hong Kong and Singapore are being confronted with several operational hurdles such as space restraints, higher realty prices and increasing operating costs. This is causing service providers to evaluate alternate low-cost locations such as Malaysia, India and China for further expansion in the region.

New analysis from Frost & Sullivan, Asia Pacific Data Center Services 2010, finds that the market earned revenues of over US$2.55 billion in 2010 and estimates this to reach US$9.25 billion in 2017.

“Most data centers are working at high utilization levels and service providers are hard pressed to identify the right locations for new data center build outs that provide the required infrastructure, at a sustainable price,” says Frost & Sullivan Research Analyst Mayank Kapoor. “Market participants are adopting virtualization, consolidation and cloud computing to alleviate some of these cost pressures.”

Further, the growing adoption of high-density blade servers is resulting in escalating power and cooling requirements. The latest power and cooling technologies will reduce the overall demand for data centre space, as they enable better packing of efficient blade servers.

Meanwhile, renewed corporate growth in the Asia Pacific in 2010 has given impetus to organizations’ business expansion efforts.

“As the outlook for North America and Europe is not very promising, global businesses are focusing their efforts on Asia Pacific to drive the next phase of corporate growth,” notes Kapoor. “Global service providers have identified this as an opportunity and are beefing up their presence in the region, as an increasing number of businesses are looking at third-party service providers to supplement or replace their captive facilities.”

Service providers are virtualizing a greater part of their servers and incorporating Green IT best practices across facilities. Future data centers will also have higher power densities, be carrier neutral and be built in low-cost locations.

If you are interested in more information on this study, please send an e-mail with your contact details to Donna Jeremiah, Corporate Communications, at djeremiah@frost.com.

Asia Pacific Data Center Services 2010 is part of the Communications Services Growth Partnership Services program, which also includes research in the following markets: Asia Pacific SaaS Market 2010, Asia Pacific IaaS Market 2010, Asia Pacific Enterprise Data Services Market 2010, and Asia Pacific PaaS Market 2010. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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Asia Pacific Data Center Services 2010
P57C-63

Contact:

Donna Jeremiah
Corporate Communications – Asia Pacific
P: +603 6204 5832
F: +603 6201 7402
E: djeremiah@frost.com

Carrie Low
Corporate Communications – Asia Pacific
P: +603 6204 5910
F: +603 6201 7402
E: carrie.low@frost.com

http://www.frost.com

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Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's research and consulting services empower clients to generate, evaluate, and implement effective growth strategies.