A new report from the Data Center Practice at BroadGroup reveals that the data center market in Australia and New Zealand is expanding significantly, but suggests that growing demand is confronting a severe shortage of quality data center space, as well as limitations of the physical infrastructure in most of the existing sites.
The findings of the report, Data Centers: Australia and New Zealand, published on 7 February, suggest a major requirement for investment to upgrade in the sector, but also points to growing business consolidation. The first to address the sector in these markets, the report also suggests that current conditions are likely to drive a renewed emphasis on server and storage consolidation and virtualisation, as well as further proliferation of high density blade technologies.
In common with the findings of the data centers Asia report conducted by BroadGroup at the end of last year, older facilities with legacy design issues mainly related to electrical mechanical infrastructure and security, will face critical challenges including possible exclusion from RFPs as demand for power and cooling increases.
Market trends towards change, consolidation and M&A; inform the outlook for the data center sector in both countries. The report also suggests telecommunication carriers are entering the IT services market which includes the provisioning of data centers. However, Australia and New Zealand markets are both characterised by the significant presence of IT outsourcers who dominate the top 10 data center players by size.
Brisbane (Australia) and Auckland (New Zealand) are set to increase space with several new data cdentres over the next 12-18 months. Sydney and Melbourne (Australia) and possibly Wellington (New Zealand) are likely to see new facilities built within 2-4 years on the basis of current plans identified. The forward view provided in detail in the report, suggests a reduced availability of quality space, increased prices for racks and hosting, and increased power costs.
The report provides a wealth of detail on services, provider profiles and their strengths and weaknesses, technologies currently deployed as well as an analysis of the commercial and technical issues confronting data center services. All major vendors and the majority of smaller service providers are detailed in this report, which also contains city maps with data center locations identified.
"As a resource, the report offers a level of detail which is invaluable for any company engaged in or investing in the data center sector in these countries, commented Philip Low, managing director at BroadGroup. "These are important markets on the point of further change, with well defined niche opportunities and reflect the strategic value that data centers can now yield, evidenced in markets globally.