Data Center Market Evolves With More Capacity From Fewer Facilities

The data center market continues to evolve as virtualization, the cloud, and managed services impacts the market for data centers. A decline in the number of U.S. data centers continues even as capacity continues to increase. The number of U.S. data centers fell for the first time in 2009, down 0.7%, as the economic crisis hit. In contrast, U.S. data center capacity increased 1%. That's become a trend in ensuing years, reflecting "a major change in data center and IT asset deployment that will accelerate further in coming years," according to a new report from IDC.

Rapid growth in "array of applications and devices," ongoing digitization of vast amounts of data and the drive to organize and analyze it are driving the trend, which "has had a significant impact on how businesses build, organize, and invest in data center facilities and assets," according to IDC.

According to its "U.S. Datacenter 2012-2016 Forecast,"  IDC expects a decline in the number of U.S. data centers from 2.94 million in 2012 to 2.89 million in 2016. A fall in the number of internal server rooms and closets will lead the contraction, along with "a very small decline in mid-sized local data centers."

Nonetheless, total data center space will increase significantly, expanding from 611.4 million square feet in 2012 to more than 700 million in 2016, led by growth in very large data centers run by service providers. Service providers' data centers will account for more than 25% of all large U.S. data center capacity by the end of the forecast period.

Smaller internal data centers will decline in both number and size, while growth in the number of large, internal data centers will lag that for very large data centers operated by service providers, IDC says.

A dramatic increase in the use of server virtualization, which enables data center managers to consolidate server assets, has been the most notable factor driving these trends, according to IDC. In addition to enabling them to shut down smaller remote server rooms and closets, it also enabled them to make investments in power and energy management, which has become an increasingly important issue.

Similarly, the shift toward cloud computing architecture for application, platform and infrastructure delivery has been an important factor driving recent trends. In parallel with the exploding amount of digital content being made available, "the build-out of public cloud offerings is driving major growth in the number and size of larger data centers," IDC points out.

CHR Solutions is keenly aware of these trends and have invested heavily in data center capacity. Utilizing many of the technologies and trends outlined in this IDC report enables us to extend data center capacity to clients, relieving them of the high cost to build and operate them. Contact us today to learn how to leverage this important capability.

Written by Kevin Kutcher at 09:00
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