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15 Dec 2006
Around half of UK data centre owners intend to build new facilities during 2007, according to research conducted at the DatacenterDynamics event in London last month.
Two sample groups were researched, including 128 organisations that own and/or operate data centre facilities and 122 organisations that supply products and services to the sector.
Both groups indicated strong projected growth into 2007, the researchers found.
The owner/operator sample spent an estimated $5.9bn in 2006 on improving and increasing their data centres, with just under one in four building new facilities in 2006.
Half refitted or extended their capacity within existing facilities, and one in three had relocated or consolidated their operations.
The research indicated that levels of refit and consolidation will remain constant through 2007 but that the proportion intending to build new facilities will double.
A similar profile is indicated by the sample of vendors. Turnover from the data centre sector is estimated at $3.14bn and this is projected to rise by over 25 per cent into 2007 to just over $4.13bn.
George Rockett, co-founder of the global DatacenterDynamics Conference and Expo, said: "The feedback and data we have received from London indicates a rate of new construction and renovation activity equivalent to those we have found in developing markets we have covered, such as India.
"But the idiosyncrasies of the UK market, such as the availability of space and projected limitations of energy availability, add a further level of risk to that level of projected growth."
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Data Centre Explosion
The predicted explosion in the data centre industry may be good news for data centre providers but the underlying trend which is driving demand is concerning. The truth is businesses are failing to manage their information effectively. The greatest problem is unstructured data (word, excel, pdf files), which is growing at an incredible pace. Many businesses simply do not know what information is on their systems or what value (if any) it holds. On average, 25-30% of stored data is duplicate information that holds no value to the business whatsoever. So when organisations employ data centres to back-up this information they are effectively replicating their mismanagement of information in another place - wasting huge amounts of storage capacity, energy and money. Some data centres do offer a means to retrospectively manage and de-dupe businesses data - but this comes at considerable cost. It's the equivalent of paying a removal team to pack up your belongings, move them to your new house on a cost per ton basis, and then start to sort through your items and throw away what you don't need. It's time the storage industry stopped solving problems with more storage space and bigger facilities and addressed the root cause of the problem - not having the tools in place to understand what information is on a system and what its value is to the business.
Posted by: Phil Maynard, Product Marketing Director, Njini 20 Dec 2006