Archived Content

The following content is from an older version of this website, and may not display correctly.

Gaming could drive business growth for data centers of all sizes, according to new research by colocation giant Interxion, but potential hosts will need to develop a gaming culture in order to win the business.

According to Interxion’s market projections (based on its study data) gaming could count for 30% of the overall revenue of the UK technology industry by 2020.

As streaming will be the default method of delivery, the majority of the revenue will be channeled through the data center industry.

All sectors of the colo industry are set to benefit, according to Interxion’s study, which identified three distinct segments of the gaming industry, each of which will seek a hosting partner of similar size.

The bottom tier of online games vendors, who have less than a million subscribers, will typically use Microsoft Azure or Amazon Web Services as they seek to minimize startup costs.

As companies attract more subscribers they will move to the mid tier, which is characterized by games with one to five million subscribers, which will typically start to investigate the economies of scale that come with owning their own infrastructure with a hosting partner.

The top tier of gaming companies, with more than five million subscribers, will own and build their own infrastructure.

These will demand the highest levels of connectivity, coverage and quality of service, according to Bryan Hill, director of marketing and business development at Interxion’s digital media division.

The proliferation of devices and bandwidth has created a boom in games on desktops, mobiles and tablets, said Hill.

There are now 20 million mobile gamers in the UK alone, according to eMarketer1 research, and the data traffic created by these commuters peaks in falls with the rush hour.

Meanwhile, PC-based gaming creates traffic peaks from 7pm into the early hours of the morning.

Virtual reality is the dominant driver of new traffic growth, according to Hill.

“Immersive experiences are becoming very popular, and they are going to test the infrastructure of any service provider,” said Hill.

Understanding the culture of gamers, their patterns of consumption and the games companies’ security concerns, will be crucial to any hosting company that wants their business, said Hill.

Attendance at international gaming conferences is critical in order to understand the culture of the gaming companies.

Hill predicts the big growth markets for gaming will be in Russian and Eastern Europe.

“Connectivity, coverage and quality of service will always be crucial for keeping the business,” Hill said.

"But the right levels of support and cultural understanding are the qualities that will win it".