Asia-Pacific Datacenter Services Market 2010 New Contenders Emerging on the Horizon
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1 Asia-Pacific Datacenter Services Market 2010 New Contenders Emerging on the Horizon June 2012
2 Contents Section Slide Numbers Executive Summary 4 Market Overview 10 Australian Datacenter Services Market Chinese Datacenter Services Market Hong Kong Datacenter Services Market Indian Datacenter Services Market Indonesian Datacenter Services Market Malaysian Datacenter Services Market New Zealand Datacenter Services Market The Philippines Datacenter Services Market Singapore Datacenter Services Market South Korean Datacenter Services Market Taiwanese Datacenter Services Market Thailand Datacenter Services Market Vietnamese Datacenter Services Market The Last Word (Conclusions and Implications) 254 3
3 Introduction Currently, the Asia-Pacific datacenter services market is in an evolutionary stage. The evolution is being brought about by the maturing facilities in Australia; declining space and increasing cost pressures in the traditional hubs of Hong Kong and Singapore; and the emergence of new low-cost destinations, such as Malaysia, the Philippines, and India that are looking to position themselves as the next datacenter hubs. During 2010, Internet/media was the largest demand vertical for the services with percent share of the market. This was primarily driven by their need to host and distribute an increasing array and amount of content across regions, be it for the Web or as a content distribution network (CDN). BFSI and ICT (Telco/IT) were the other two major demand verticals accounting for another one-third of the market. In terms of horizontals, large enterprises continued to dominate the market with two-thirds share of the demand in This is due to the rebound in growth, especially in emerging markets, that MNCs and large businesses witnessed in the base year and the continuing expansion of global businesses in Asia-Pacific. Small and medium businesses are expected to drive greater adoption of cloud services and continue accounting for a low share of datacenter services. With customers looking to outsource a larger share of their IT infrastructure, the demand for datacenters is expected to pick up in the short to medium term. The market is expected to grow at a CAGR of percent between 2010 and 2017 to reach revenues of $ million. 5
4 Market Engineering Measurements Market Overview Total Datacenter Services Market: Asia-Pacific, 2010 Market Stage Market Revenue Market Size at End of Forecast Period Growth $ M $ M (2010) (2017) Base Year Market Growth Rate Compound Annual Growth Rate Customer Price Sensitivity Degree of Technical Change % % 7 8 ( ) (scale:1 [low] to 10 [High]) (scale:1 [low] to 10 [High]) Decreasing Stable Increasing Note: All figures are rounded. The base year is
5 Market Overview Definitions Total Datacenter Services Market: Definition of Co-location and Managed Hosting Services, Asia-Pacific, 2010 Service Level Business Process Application OS Server Managed Hosting Rental of servers with basic services such as monitoring and system reboot Network Infrastructure Co-location Pure rental of datacenter floor space, cage, or empty racks with basic power, cooling, and bandwidth Price Chargeable to Customers 11
6 Market Overview Definitions (continued) Co-location: Co-location refers to pure space rental, including private vaults, floor space, cage, or racks in different sizes. Basic infrastructure level support such as power, cooling, and physical security measures are provided. Basic network connectivity is provided as well and additional network and bandwidth requirements generally incur additional charge. The customers pay the monthly or annual rental for space and basic facilities, but need to purchase their own servers. Besides, customers sometimes may need to send in their own inhouse IT resources to manage the servers. Managed Hosting: Different from co-location, managed hosting service includes servers. Customers do not need to purchase their own servers, instead, they rent the servers from the datacenter operators together with other specifications. Managed hosting are of two types, namely sharing the server with the others or having a dedicated server. The datacenter operator, in most cases, also provides 24x7 system support services such as monitoring and rebooting. This may also include operating system management and software security management. 12
7 Market Overview Definitions (continued) The countries covered in this research are in the ASEAN region (predominantly Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam), Greater China region (Mainland China, Hong Kong, and Taiwan), India, South Korea, Australia, and New Zealand. The study period for this research service is from 2009 to 2017, with 2010 as the base year. Only third-party datacenters, which provide infrastructure hosting services to customers are considered, while the captive datacenters, which are only built for the internal use of a company, are out of the scope of this project. Only raised floor space are of interest in this study, unless otherwise stated that it is total datacenter floor space. Revenues for the forecast period reflect the total potential revenues from datacenter infrastructure hosting services, which includes co-location and managed hosting. The revenues include the contribution from global system integrators (SIs), telecoms or carriers, carrierneutral datacenter operators, and facility pure plays, that are part of the value chain for the infrastructure hosting services. Revenues are calculated based on end-user prices, namely actual price paid by end users for the services. In this project, datacenter tier classification follows the definition from The Uptime Institute. 13
8 Market Overview Key Questions This Study Will Answer Hypothesis What is the addressable market opportunity for datacenter services? What is the expected growth rate and key drivers of growth for specific service areas? What are the significant developments in the datacenter services space in Asia-Pacific? How can service providers and vendors tap into those opportunities? What are the key customer adoption trends in datacenter services? Which are the key areas of spending in the future? What drives sales in specific market segments? How does adoption vary by verticals and horizontals? Which are the key participants in the market and what are their market strategies? 14
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