The data center outsourcing market to score thriving growth by 2026

31.10.2019 1,893 15

Martin Deshev

The saying “Data is the new oil” gains popularity and the reason for that is simple. The more data you have, the more “fuel” you have for your business. And this can be valid for any type of business. From AI service providers to your local mom-and-pop’s store. With enough data, you can gain incredible insights into aspects of your business you never even thought about before.

However, all of that is easier said than done. Gathering, storing and processing data might be vital for a business, but it’s definitely not up to the capabilities of most companies. It’s complex, expensive and requires specialists with specific skills. But as companies realize the benefits of Big Data, they do want to take advantage of it. Hence, the expected data center outsourcing market growth.

Thriving growth of the data center outsourcing market

The latest forecast by Data Bridge Market Research points to a big jump in the data center outsourcing market from 2019 to 2026. It could reach a 5.07% CAGR (Compound Annual Growth Rate). One of the main reasons for that will be the rise of specialist IT-based service outsourcing. In short, most companies will outsource their deployment and maintenance of IT infrastructure and just use the data center as a service.

“The global data center outsourcing market is highly fragmented and the major players have used various strategies such as new product launches, expansions, agreements, joint ventures, partnerships, acquisitions, and others to increase their footprints in this market”, the report says.

The market has several main drivers to make this growth possible. Among them is increased demand from users for IaaS along with the growth in various other industries. So, the more businesses in other industries grow, the more they will want to increase their investments in IaaS and data center outsourcing. Another market driver is the high levels of expenditure incurred on various IT services and business technology services.

Pros and Cons of Data center outsourcing

If you’re wondering if Data center outsourcing (DCO) is something you should explore, let’s check out a few of the pros and cons.

Pros:

• Lower costs, higher speed
• Saving a lot of time for setup and maintenance
• Access to the latest tech and hardware
• Increased security for your data
• Easier to scale
• Many providers offer additional services, consultations and unique, tailored solutions

Cons:

• Increased dependence on the provider
• Costs can be dynamic and difficult to forecast depending on usage and goals
• Need for careful due diligence
• The location of the data center might not be ideal for you
• Issues because of natural disasters can be more common
• Possible vendor lock-in

Should you outsource?

Well, that depends on a lot of factors. Only a careful analysis of your business, structure and goals can answer that. In any case, you should definitely consider DCO as an option to grow your business.