Celebrating the 15th Annual Hosting & Cloud Transformation Summit – Presenter Q&A with Craig Matsumoto

Interview with Craig Matsumoto, Senior Analyst

Last year, we welcomed Senior Analyst Craig Matsumoto to the 451 family – and we are so excited to have him back on stage at the Hosting & Cloud Transformation Summit (HCTS). Craig will lead the “Building the Datacenter Fabric – Networking Opportunities in the Datacenter World” session on September 24 at 1:15pm PDT, in the Orovada Breakout Room 2 at the Aria in Las Vegas.

Q: What will you be discussing in this session?
A: Something I've been calling 'the new enterprise network.' As enterprises have reached out to the cloud, they've often been content to use broadband internet or SD-WAN to connect there. Datacenters would like to present an alternative, aided by the agility of software-defined networking – we're calling it software-programmable interconnection.

Q: Why is this topic significant?
A: I think the element of cloud dependency is underappreciated. As more mission-critical work moves to remote places – clouds, SaaS providers, even edge computing – I would expect some enterprises to find internet connectivity insufficient. We're going to discuss colocation as an alternative, but many enterprises don't think of colocation that strategically. About 30% use colocation, and of those, 53% use it for disaster recovery. It suggests a slim, tactical view of colocation. Is there a richer role that third-party datacenters can play for enterprises? I want to start some discussion on that.
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Global Colocation and Wholesale Datacenter Market to Exceed $54 Billion by 2023

Today, we released projections that the global colocation and wholesale market will exceed $54 billion in revenue by 2023, according to its latest quarterly Datacenter KnowledgeBase (DCKB) – which now tracks more than 6,100 facilities and 1,535 datacenter providers worldwide.
451 Research estimates that by the end of 2018, the market had $38.2 billion in revenue. Equinix and Digital Realty remained the global leaders with 9.9% and 6.3% market share, respectively.
As for global colocation and wholesale datacenter supply, in terms of net operational square feet, 451 Research analysts expect to see an overall five-year CAGR of 6% by 2023, while global demand is anticipated to be slightly higher at a 7% CAGR.
“Cloud provider demand continues to drive strong growth in the top datacenter markets and we expect that to spread beyond the top 20 global markets in the coming years,” said Kelly Morgan, VP of Datacenter Services & Infrastructure. “Some individual markets may see supply growth of 20% or higher, while other slower-growth markets will offset that to provide single-digit growth overall.”
DCKB Global MTDC SQ Supply & Demand
About Datacenter KnowledgeBase
The Datacenter KnowledgeBase (DCKB) database covers more than 6,100 individual datacenters operated by 1,500+ datacenter companies serving North America, Europe, Middle East and Africa (EMEA), Asia Pacific (APAC) and Latin America (LATAM). The DCKB tracks colocation and wholesale datacenter facilities globally, and providers insight into facility capacity and capability, investment and expansion opportunities, and future facility builds.
This unique database provides the industry’s most authoritative and comprehensive set of datacenter intelligence, covering more than 100 metrics per facility. The 451 Research team gathers data from primary sources including on-site visits, assessments and direct outreach, to validate and collect this data directly from datacenter operators.

Not a current subscriber of the DCKB? Learn more.

451 Research, a leading technology analyst and advisory firm, today released projections that the global colocation and wholesale market revenue will exceed $54 billion by 2023, according to its latest quarterly Datacenter KnowledgeBase (DCKB) – which now tracks more than 6,100 datacenters in 1,535 companies worldwide.


451 Research estimates that by the end of 2018, the colocation and wholesale market saw $38.2 billion in revenue – 85% of which are currently tracked in the latest Datacenter KnoweldgeBase. Equinix and Digital Realty remained the global leaders with 9.9% and 6.3% share respectively.


As for global MTDC supply – in terms of Net Operational Square Footage – 451 Research analysts expect to see an overall five-year CAGR of 6% by 2023, while global demand is anticipated to reach a slightly higher CAGR at 7%.

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Datacenter Transformation Vendor Window: CyrusOne, Equinix earn top ratings

Combining a proprietary panel of more than 50,000 senior IT buyers with our robust data-collection methodologies, 451 Research's Voice of the Enterprise: Datacenter Transformation tracks and analyzes the disruption occurring in the market today and exposes the major opportunities for enterprises, IT vendors, suppliers and investors.

The latest release includes the 451 Research Vendor Window, which plots enterprise adoption as well as Promise and Fullfillment indices that compare vendors' effectiveness at both marketing and execution. The Vendor Promise Index is designed to measure the perception of a vendor prior to purchase, while the Vendor Fulfillment Index is designed as a measure of execution effectiveness around service delivery and product performance post implementation. The study also looks at IT infrastructure and datacenter facility spending trends, datacenter building plans and workload deployment locations.

3.7.2017 data blog post
We saw relatively high overall satisfaction reported by organizations that use colocation services. Whereas colocation is seen by some as the first logical step to full-blown cloud migration, these high ratings captured across the entire sample could further preserve a near-traditional IT ecosystem environment across the data center market, at least for the foreseeable future.

Within those colocation vendor ratings, CyrusOne, Digital Realty Trust, Equinix and CenturyLink all received above-average ratings by customers both prior to purchase and after implementation. This is a challenging market fraught with fragmentation, but leaders in the space (including the aforementioned vendors) are delivering in accordance with customer expectations, particularly for reliability, uptime, network performance, and connectivity options.

Learn more about Voice of the Enterprise here. 
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Webinar January 10th: 2017 Trends in Datacenters

Datacenters are at the core of the Digital Transformation revolution. Operators are increasingly adopting new technologies and techniques to ensure they remain relevant and competitive in the new world of IT. Pacesetters are driving efficiency, agility and connectivity, while automation, rackscale architectures, cloud-based analytics and distributed resiliency are also evolving rapidly.

Join Andy Lawrence, Research Vice President for Datacenters, for a complimentary webinar on January 10th as he examines how these evolving datacenter technologies will shape the market and competitive landscape in 2017.

Click here to see a list of all of our 2017 Trends webinars. 

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Brexit fear casts shadow over London Datacenter & Hosting Market

Uncertainty and market volatility will affect capital’s place as 'first choice' location

The decision by UK voters to leave the European Union has created a period of uncertainty about the role of London in the multi-tenant datacenter and hosting markets,
according to a new report by 451 Research.

‚ÄúHistorically, London has offered an ideal base for local, regional and international firms to provide colocation, hosting and cloud services to the rest of Europe,‚Äù said Rory Duncan, Research Director for European Services with 451 Research. ‚ÄúThis status is now at risk ‚Äì prompting some providers and their customers to consider other locations such as Frankfurt or Amsterdam for ease of doing business within the EU.‚Äù

In its latest report on the London Multi-Tenant Datacenter (MTDC) & Hosting Market, 451 Research outlines the potential disruption facing service providers and how they are likely to respond. “We know that multi-tenant datacenter providers focus on bringing space online in a just-in-time manner,” said Penny Jones, Senior Analyst, European Services. “But while this means that many providers are prepared to weather the storm if demand is reduced in the short-term, longer-term investment doubts are likely to affect contract renewals for a number of enterprise customers”.
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