Cloud computing drives data center hosting development

IT infrastructure spending for cloud computing will reach $32 billion in 2015, accounting for 33% of all IT infrastructure spending, according to the investigating agency IDC. These statistics show that cloud computing technology has been exploding and increasing the share of the data center market, but this is not beneficial to all data center operators. Simply put, the technology boom focuses on cloud computing infrastructure.

If you have a hosted dedicated data center, your market share growth will slow down from a real estate perspective, i.e. the number of data center square feet will be reduced. This is only a transitional phase of market development, although there is a huge demand for data center hosting space.

Farewell to Enterprise mode

We are moving from having IT staff to building and equipment in all the old business models to the new model of buying services from cloud providers. The chief financial officer of the Enterprise believes that owning its own data center can eliminate the cost risk, and the CIO believes that the server, software, and personnel management that it owns can still prove its current strong position in the data center hosting market.

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The same financial decisions, however, can have a negative impact on the enterprise data centers that are now being transformed into escrow. You just have to look at the experience of the "Tier1" Server vendor. With the commercialization of technology, enterprises have realized that the use of other servers is also competent to work, those servers of the so-called "Tier1", just as an additional and expensive badge.

The same thing has happened in the world retail industry. HMV was once a very successful AV brand, but suffered a huge drop in fate. As their markets become more commoditized, consumers realise they can access the same products at lower cost and with greater ease, and people no longer buy HMV CDs and DVDs. Because both online retailers such as Amazon and ebay, or new services offered by itunes and Netflix, are able to get their products. While entertainment is still a booming industry, HMV's market share has fallen sharply.

The development of cloud computing places the data center hosting provider on the same ship as the "Tier1" Server vendor. When data center hosting succeeds, it will replace the expensive in-house data center, so the enterprise's internal data center will face the risk of being eliminated in technology and market.

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Cloud computing drives data center hosting development