Outsourced data centre space has grown as cloud computing has provided users a more cost-effective option.
Melbourne, Australia (PRWEB) September 19, 2014
The Data Centres industry has grown steadily over the past five years, underpinned by the increasing prominence of cloud computing. Operators in the Data Centres industry in Australia provide electronic information storage services, such as cloud services, which enable users to upload, download, backup and access files and systems online. According to IBISWorld industry analyst Nick Flores,” cloud computing has enabled companies to reduce their storage and computing costs as it can be scaled up or down based on demand.” This is in contrast with firms maintaining their own servers solely in-house, which involves considerable capital expenditure. As a result, outsourced data centre space has grown over the past five years, as cloud computing has provided users a more cost-effective option. Industry revenue is forecast to increase by an annualised 9.1% in the five years through 2014-15, to reach $600.6 million. This includes forecast growth of 8.6% in 2014-15.
The rise in electricity costs and the cost of water, required for cooling systems, has supported demand for data centres over the past five years, as industry services enable operators to pool servers and obtain greater energy efficiency. “A data centre operator simply consolidates server rooms, cooling facilities and physical software goods, and makes them available to anyone over an internet connection,” says Flores. The consumption-based nature of cloud computing has allowed businesses and government clients to leverage cloud networks, as they are able to adjust server time and network storage space contingent on demand, and in so doing reduce operational costs. The industry exhibits a medium level of market share concentration. Major players include IBM A/NZ Holdings Pty Limited, Fujitsu Australia Ltd and NEXTDC Limited.
Over the next five years, data centre security concerns are expected to be an important issue. The reputation and trustworthiness of the third party managing a company's or individual's private data will be at the forefront of security concerns. Data Centres industry users will need to be convinced that their data cannot be accessed by outside parties, and that the cloud operator does not use the information for undesirable purposes. Depending on the holding location of the data, which could be anywhere globally, the regulations governing privacy may be different to those in a client's country of origin. In line with the rollout of the National Broadband Network, faster broadband speeds are expected to support demand for cloud computing.
For more information, visit IBISWorld’s Data Centres industry in Australia report page.
This industry is mainly engaged in providing electronic information storage and retrieval services. The industry provides electronic information storage, such as cloud services, which involve providing third parties with the ability to upload, download, back-up and access files and systems over the internet. The industry excludes web hosting services, which primarily provide access to information stored on the internet as a means to disseminate information.
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