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In-house data centers under pressure

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CIOL Bureau
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MUMBAI, INDIA: The very largest size category of data centers (which is data centers with more than 500 racks of equipment) will increase its share of spending from 20 per cent in 2010 to 26 per cent in 2015, driven by the cloud and the shift from internal data center provision to external. In 2010, two per cent of data centers contained 52 per cent of total data center floorspace and accounted for 63 per cent of data center hardware spending. In 2015, two per cent of data centers will contain 60 per cent of data center floorspace and account for 71 per cent of data center hardware spending.

"Traditional in-house enterprise data centers are under attack from three sides. Firstly, virtualization technologies are helping companies to utilize their infrastructure more effectively, inhibiting overall system growth. Secondly, data centers are getting more efficient, leading to higher system deployment densities and inhibiting demand for floor space. Thirdly, the move to consolidated third-party data centers is reducing the overall number of midsize data centers. Meanwhile, the largest data center class is, of course, benefitting from the rise of cloud computing," Jon Hardcastle, research director at Gartner said.

Data center hardware spending includes servers, storage and enterprise data center networking equipment. Worldwide data center hardware spending is projected to reach $98.9 billion in 2011, up 12.7 per cent from 2010 spending of $87.8 billion, according to Gartner, Inc. Data center hardware spending is forecast to total $106.4 billion in 2012, and surpass $126.2 billion in 2015.