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Asia Pacific DCS market hit US$10 billion in 2011

Anuradha Shukla | March 27, 2012
Gartner report indicates traditional market at the tipping point from maturity to reinvention or decline.

Data center services (DCS) market in the Asia/Pacific region reached US $10 billion in 2011, according to the Gartner report "Regional Differences in the Move Toward the Cloud, 2012."

Vice president and analyst at Gartner Claudio Da Rold notes that the DCS market has experienced significant changes in the past two years and the symptoms of a traditional market are at the tipping point from maturity to reinvention or decline.

Last year, web hosting and co-location markets were US $2.5 billion in the Asia/Pacific region. Also, public cloud services penetration was 9.8 percent in Japan and 3 percent elsewhere.

Gartner has identified Japan and South Korea as the most vibrant Web hosting markets for local content and says that Singapore and Hong Kong have become important regional hubs for multinationals.

Developed markets

Australia, New Zealand and Taiwan are also developed markets for the Data center services (DCS) and several players such as IT services providers, hosters and cloud specialists (from the U.S.) are competing for a market share in this region.

More players are expected to enter the Asia/Pacific marketplace in the next 12 months making competition even tougher.

Gartner points out that although interest around data center services (DCS) is extremely high, the market structure, dynamics and maturity differ across the world. 

"Buyers in enterprise organizations must recognize the common usage patterns and differentiated levels of adoption of hosting vs. data center outsourcing (DCO), as well as the different business and market drivers toward new products," said Da Rold.



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