This just in…
Data Centers make really good business sense.
Surprised? Neither were we.
For those who take the time to read RBC Capital Market Primers, this Canadian investment bank with assets around $710 Billion, puts together wicked industry vertical reports.
Thoroughly comprehensive, dry as a bone, and 80 pages long. It was quite a rush to read.
In short, it seems to speak of only good news for 2012, particularly in the realm of datacenter and hosting infrastructure.
The market projected is incredibly robust and the report is a powerful statement towards the strength of the datacenter and hosting industry at large… driven by high demand on a global scale and pressured by an average 18-24 month lead time to create a new data center.
A few highlights:
“We anticipate that growth rates for IP traffic, e-commerce transactions and revenues, and datacenter services will remain firmly in the double digits for the next several years as businesses seek out security and reliability for their servers and networking equipment, in many cases at third-party datacenters.”
“Leading sectors of demand include digital media and distribution, enterprises, financial services, managed services providers, and network providers. With 100% Web-site uptime and network connectivity increasing requirements for many businesses… we see little probability that demand for datacenter services will taper off during the next several years.“
“The datacenter industry has showed strength and resilience in 2011, and there has been no major effect from economic headwinds. We have seen continued bookings by enterprises, carriers, and managed services providers, including cloud. We expect this trend to continue and cloud services revenue contribution to increase in 2012.”
Most of us in this space already see the tangible reality of these statements, but it’s also nice to see the hard data backing it.
You can read the full 80 page RBC Primer by downloading it here.
Data center and hosting information begins on page 60.
It’s a doozy, but worth the read.