{"id":22690,"date":"2016-05-19T09:53:20","date_gmt":"2016-05-19T09:53:20","guid":{"rendered":"http:\/\/www.cloudcomputing-news.net\/news\/2016\/may\/19\/colocation-market-update-equinix-digital-realty-ntt-see-further-growth\/"},"modified":"2016-05-19T09:53:20","modified_gmt":"2016-05-19T09:53:20","slug":"colocation-market-update-equinix-digital-realty-ntt-see-further-growth","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/colocation-market-update-equinix-digital-realty-ntt-see-further-growth\/","title":{"rendered":"Colocation market update: Equinix, Digital Realty, NTT see further growth"},"content":{"rendered":"<p><img decoding=\"async\" src=\"http:\/\/www.cloudcomputing-news.net\/media\/img\/news\/iStock_clouds_nG8GKfw.jpg\"><\/p>\n<p><em>(c)iStock.com\/zakokor<\/em><\/p>\n<p>The major colocation players continue to extend their leadership &ndash; and comfortably beat overall market growth &ndash; in large part due to significant acquisitions, according to the latest note from Synergy Research.<\/p>\n<p>According to the firm&rsquo;s Q1 2016 figures, the top three vendors in the space remain Equinix, Digital Realty, and NTT, with 28%, 26%, and 41% year on year growth respectively. Yet while the analyst house argues the three firms grew well enough organically, the acquisitions made &ndash; in particular Equinix acquiring Telecity and Bit-isle, Digital Reality with Telx and NTT with e-shelter &ndash; helped boost the coffers further.<\/p>\n<p>Equinix is the only single colocation player with more than 10% market share, according to the researchers; to put this into context, the remaining seven vendors in the top 10, including CenturyLink, Global Switch, and KDDI, hold just over 15% share between them. According to the data the colocation market is expanding steadily across all regions, with China, Germany, and Japan the highest growing countries in Q1.<\/p>\n<p>Regardless, it shows the market in comparatively rude health. &ldquo;We&rsquo;ve seen a constant stream of M&amp;A activity over the past five years and several more big deals are in the pipeline &ndash; and yet there remains a very long tail of independent small to medium sized colocation operators,&rdquo; said John Dinsdale, a chief analyst and research director at Synergy. &ldquo;Many of these will continue to operate successfully by focusing on specific metros or countries, while others will inevitably succumb to market consolidation,&rdquo; he added.<\/p>\n<p>451 Research <a href=\"http:\/\/www.cloudcomputing-news.net\/news\/2016\/apr\/01\/why-colocation-becoming-nexus-cloud-and-enterprise-it\/\">conducted a similar study back in<\/a> April which argued that 2015 was the best year on record for deals in the data centre, hosting, and managed services sector. Global colocation revenues will reach more than $33 billion (&pound;23bn) by 2018, the researchers argued, with Equinix leading on market share despite Digital Realty owning more real estate.<\/p>\n<p>Anyone asking why the colocation market continues to see market growth needs to look no further than Logicworks&rsquo; description in this publication <a href=\"http:\/\/www.cloudcomputing-news.net\/news\/2016\/feb\/01\/the-unexpected-rise-of-the-managed-datacenter\/\">back in February<\/a>. &ldquo;As enterprises begin to move &lsquo;easy&rsquo; workloads to AWS [et al], they want to move not-ready workloads to a managed environment outside their internal data centres,&rdquo; Logicworks argues. &ldquo;Somewhat paradoxically, colocation is rising in popularity precisely because enterprises want cloud.&rdquo;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(c)iStock.com\/zakokor<br \/>\nThe major colocation players continue to extend their leadership &ndash; and comfortably beat overall market growth &ndash; in large part due to significant acquisitions, according to the latest note from Synergy Research.<br \/>\nAccordi&#8230;<\/p>\n","protected":false},"author":50,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-22690","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/22690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/50"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=22690"}],"version-history":[{"count":2,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/22690\/revisions"}],"predecessor-version":[{"id":23061,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/22690\/revisions\/23061"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=22690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=22690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=22690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}