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IDC Predicts Hyperscale and Third-Party Management will Dominate Data Center Market


December 15, 2014

The data center of tomorrow will be significantly different from today’s facilities, with hyperscale data centers playing a key role in the landscape. IDC has released its FutureScape: Worldwide Data center 2015 Predictions report, which highlights just how much the global data center architecture is set to change over the next few years.

According to IDC, hyperscale data centers will house more than 50 percent of raw compute capacity and 70 percent of raw storage capacity globally by 2016. This new breed of data center, which enables millions of virtual servers to work together to process fluctuating workloads, is a significant part of the backbone of cloud computing. In addition, IDC is estimating that by 2017, 60 percent of all data center-based IT assets will be in colocation, hosting and cloud data centers.

Other key trends set to impact the market include a push toward hosted and managed infrastructure, with more than 60 percent of companies indicating they are ready to give up management of their IT infrastructure over the next two years.  However, 80 percent of respondents say they will not be able to take full advantage of converged and software-defined IT solutions at their own facilities due to incompatible or immature IT asset management practices. These organizations will rely on MSPs and advanced automation to boost data center efficiencies and business value.

"The key question for organizations is whether they have the insight, capital, and commitment to design, build, and operate data centers for reliable and dynamic delivery of transaction, content serving, archiving, and analytic capacity on time, with no delays and no excuses to individuals and organizations around the world," said Richard Villars, vice president, data center & cloud research at IDC. "For many the answer will be 'no!' They will rely increasingly on third parties to build, deploy, manage, and 'rent' IT capacity and store important information."

The findings in this most recent analysis complement additional research from IDC showing that the largest impact on the storage system market this year was from sales to hyperscale data centers. Beyond that, Gartner Group finds that original design manufacturers (ODMs) have been steadily changing their business models and shipping servers directly to hyperscale data center customers, building the foundation for what will by a $4.6 billion market by 2018.

Other key IDC data center findings show that third-party service providers will own a quarter of all IT assets found in server rooms and closets by 2018, which will create asset management and governance challenges.  And, 70 percent of large and mid-sized organizations are expected to initiate major network redesigns over the next three years to better align inter-data center as well as data center-to-edge data flows.




Edited by Peter Bernstein

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