One in two enterprises requires additional server colocation in next twelve months, despite lack of space, power constraints and soaring costs
London, 20 November 2007
Almost 50% of mid-sized enterprises (500 – 1,000 employees) will have significant server colocation needs over the coming 12 months, according to new research from Adapt, the independent Virtual Network Operator (VNO). The OmniBoss survey, conducted by Vanson Bourne on behalf of Adapt, gathered feedback from 200 senior IT decision makers in mid-sized companies. Despite this, data centres are rapidly running out of capacity, there are power constraints due to the development of London Cross Rail and the Olympic site, and there no new data centre builds in central London. Without major planning now, UK businesses will have limited options open to them.
The survey also looked at vertical industry needs and found that the finance and banking sector has the greatest need for server colocation with 45 per cent of businesses surveyed saying their requirements will increase within the next 12 months. Adapt says that increased demand for colocation is being driven by industry legislation such as the Markets in Financial Instruments Directive (MiFID) and the Sarbanes-Oxley Act, and strong organic growth. Across industries, demand is being driven by and new technologies such as IPTV and managing data-intensive content. Surprisingly, 43 per cent of enterprises still don’t have a contingency plan in place to manage their additional server colocation requirements.
Peter Knight, CEO of Adapt, says: “It’s a time of great change; We’ve witnessed a shift in emphasis. No longer is data centre capacity being driven by space alone, it’s now about availability of power. In addition, significant consolidation of data centre operators, absorption of old capacity and a shortage of new sites being built mean colocation now carries a scarcity value. With demand outstripping supply it’s clearly not a buyers market meaning the corporate sector will be under serviced.”
Knight adds: “London is suffering particularly badly because of soaring demand. Some commentators have gone as far as to predict a 0% vacancy rate within the next two years. The premium on colocation space in or near London has been high in the past 18 months. In response to this, Adapt has secured technical real estate on long term leases. This will enable Adapt to continue to offer its customers colocation and data centre services well into 2009. Businesses which foresee a need for extra data hosting capacity should be planning now in order to secure the right space.”
Back to 'Press releases'