Analysis of cloud computing: data center vendors how to look?

For each data center supplier, the third quarter of 2011 is very tough. Several prominent data center companies, such as Digital Realty Trust, Equinix, and Rackspace US, are aware that their share value index has dropped by double digits from July through September, making the situation even more spectacular Customers in the have to be worried about their stability.

It is not a matter of data center industry itself that several data center experts consider this defeat as a condition caused by a large market environment. In fact, for the entire difficult third quarter, some data center companies have done better than the market in terms of stock value. From the beginning of July to September, the Dow Jones Industrial Average dropped its index by 1501 points. Overall, the index dropped 12.1%. The S & P index is more broadly observing the market and has also seen a 14.3% reduction from its perspective. Meanwhile, Digital Realty Trust dropped 10.7%, Equinix 12.1% and Rackspace 20.1%!

In addition, the failure of these large companies took place after they had greatly improved in the first half of 2011. Digital Realty Trust rose 19.9% ​​in January-June, but was not in the third quarter. The other two companies, too, have been greatly improved at the same time, but by the third quarter will not work.

The end of the third quarter was bleak, but the Dow Jones Industrial Average had rebounded, as did data center stocks, most of which have fully rebounded and aggressively put a fairly good end for the industry in 2011.

Data center has not yet out of danger

Some industry experts, or saw the head of the data center overcast.

Chris Steffen, chief technology architect at Kroll Factual Data, said: "The industry is interesting now, and if you've been to a technology conference for the past 12 months, you'll find that the most common topic is cloud computing. A large number of companies and industries are migrating to the cloud, or they are convinced that the cloud is the dominant force, and you have to know what the resulting results will mean for these mid-tier data center companies. "

Steffen notes that over-promotion of cloud computing among data center workers and consumer markets now leads many C-head executives to start favoring third-party hosting alternatives.

This means more for large managed hosting companies, such as Rackspace, because more companies are now ready to outsource their data center management.

"I really believe cloud hosting companies are going to have long-term growth, but if you are a data center construction company, that analysis may work in other ways. If I had a new technology company that had previously planned to build a data center, It's not possible at this moment, and if I can get a small, big, rewarding return from cloud computing opportunities, then I'll invest in a new data center, "says Steffen.

The move to the cloud also means that the industry is bad for some configuration providers, according to Kelly Morgan, senior analyst at Tier 1 Research.

Morgan said: "Simpler configuration of suppliers (building and renting out space but not managing equipment) is going to be tougher, and they start off with a single enclosure and start growing by starting a business or small business But now, people go straight to the cloud.

Outsourcing to the cloud is still in its early stages, as observed by the 2011 Data Center at TechTarget Datacenter, where 64% of data center experts think they have not considered cloud computing yet.

This means that 36% of respondents consider cloud computing in some ways. This explains why data center companies are swarming into the cloud to direct their own cloud services or acquire a cloud provider.

Some virtualization architects said: "Those who adhere to the physical data center, the current cloud computing can not see a clear way, so still stagnant, downhill or waiting for the acquisition.Other more cloud-based companies are Will improve and improve. "This dynamic is leaving a mark in the data center industry. "I predict that in five to six years a large number of companies we know well will be very different, maybe closed, and maybe changed."