Enterprises Increasing Investment in Datacenter Facilities; Focus on Upgrades and Retrofits


451 Research’s Voice of the Enterprise (VotE): Datacenters Q2 2015 quarterly survey on datacenter trends indicates that, despite increased investment in cloud and colocation providers, 87% of datacenter operators surveyed from North America and Europe are maintaining or increasing their datacenter facility spending, with 25% expecting to increase spending over the next 90 days.

Both medium-sized and large organizations expect to increase spending on datacenters, with the most growth coming from healthcare and finance industries.  The primary targets for this increased spending are rack and cabling, power equipment and datacenter infrastructure management software (DCIM).

Dan Harrington, Research Director at 451 Research, noted, “To support growing business demands on IT, enterprises are freeing up budgets and investing in modernizing neglected datacenter facilities. Those equipment vendors with offerings that target enterprise clients’ larger premium sites will see the greatest opportunity.”

Organizations surveyed cited Schneider Electric as their preferred provider in four out of seven facilities equipment and software categories, including universal power supplies (UPS), power distribution units (PDU), and racks and cabling, as well as DCIM.  Emerson Network Power follows closely in many categories and is the number one preferred computer room air conditioning and air handling equipment provider.  Other vendors that ranked highly include Carrier, Caterpillar, Eaton, HP and Trane.

Datacenter operators interviewed as part of this study provided detail regarding their need to modernize their facilities as well as invest in innovative technologies, such as DCIM, to run their facilities more efficiently.

“Spending has increased for infrastructure, data center infrastructure, upgrades. It's time to replace aging equipment. We have multiple facilities, so one facility will replace a couple of PDUs, another facility will replace CRAC units…” – Information/Technology Vertical, >1,000 Employees, >$5bn

“We selected Trellis for DCIM because they listen. Trellis has the ability to listen and change and adapt to the customer needs. They're nimble enough to listen.” – Information/Technology Vertical, >1,000 Employees, >$5bn

Organizations continue to consolidate their local datacenters and server rooms in favor of a more centralized model supplemented by colocation and cloud resources.  Over the next two years, most organizations expect to close many of their smaller local datacenters and server rooms, indicating a continued trend toward fewer overall datacenter sites.

However, the number of premium, centralized datacenters – targets for datacenter consolidation and migration projects – is increasing.  While there will be more, larger sites, the total overall datacenter square footage owned by enterprises is flat worldwide. Of those organizations increasing spending, 37% are doing so to support datacenter retrofits or upgrade projects. Existing datacenters will need to be upgraded, considering 62% of organizations would rather consolidate their IT infrastructure than build a new datacenter.

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