The last years the Data Center Market is growing real fast. The average growth between 2008-2012 is reaching the 25% and many players, not only vendors but also Colocations, were appeared in the specific segment.
But which were the main key drivers of this market?
- The increased demand for Data Sharing , due to Tablets and Mobiles
- The increase demand for Data Storage
- The increased demand of IP traffic
But , is the market similar to the dot-com bubble, when the Internet companies suddenly collapsed although the indications were showing growth?
Indeed, the Data Center Market is based on the increased demand of the above mentioned drivers. Specifically, in the today Financial Times, Cisco reports that the Internet traffic will quadruple within the next 4 years. The demand is there, but what about the supply? The supply is growing approximately 10% per year. So, the danger is that one day the supply cannot support the existing demand.
But, what will happen when the key drivers arrive to a saturation? Is it any point where the market will collapse as the dot-com?
Of course, as the majority of the markets, the Data Center Market will arrive to the Maturity Stage on which it should reposition itself. This stage is not so close and it may take years as people and enterprises are operating in high ”processing” speeds and the demand for Data exchange is incrementally increasing.
Nevertheless, the Data Centers Market should continuously monitor the key drivers in order to avoid a similar mass destruction, like the one happened with the dot-com bubble.