As enterprises embrace digitalization, cloud
computing will soon grow to half the country’s data center
capacity, ISG Provider Lens™ report says
Enterprise demand for cloud computing in Germany is growing so
fast that it will represent more than half of the country’s data
center capacity by 2025 – up from about a third today – according
to a new research report published today by Information Services
Group (ISG) (Nasdaq: III), a leading global technology research and
advisory firm.
The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data
Center Services & Solutions report for Germany finds the
increasing demand for cloud services is being driven by enterprises
investing in digitalization, especially to improve their resilience
and agility. This trend is part of a steadily growing IT and
business services market in Europe, including a 24 percent
year-over-year increase in managed services in the first quarter of
2022.
“German companies’ growing use of managed services, especially
IT and business process outsourcing, is part of a boom happening
across much of Western Europe,” said Alexandra Classen, EMEA
partner at ISG. “The biggest demand is for infrastructure services
and application development and maintenance.”
The need for colocation data centers in Germany is rising as
both enterprises and managed hosting providers increasingly rely on
them, the report says. One reason is that more companies are
beginning to need low-latency networks with a maximum latency of 35
milliseconds, which colocation facilities are better equipped to
provide.
German companies’ mass migration to the cloud is reflected in
the growing volume of traffic through the country’s network nodes
and the increasing size of new data centers, ISG says. The
throughput of the DE-CIX node in Frankfurt, one of the world’s
largest, increased from 9.1Tbit/s in 2020 to 10Tbit/s in 2021.
Nodes in Hamburg and Munich saw similar increases. New data centers
need to be big enough to consume 5 megawatts or more to be
profitable, and there are now 90 of these facilities in Germany,
supplying half the country’s data center capacity.
Recognizing the huge energy requirements of data centers, which
consume about 3 percent of Germany’s electricity, operators are
introducing modern passive cooling systems and increasing the
energy efficiency of data center computing, the report says. The
average Power Usage Effectiveness (PUE) of a new data center was
1.63 in 2020 but has since fallen to 1.3 and below — with 1 being
the ideal score.
The report also explores other trends in private and hybrid
cloud use in Germany and beyond, including the growing importance
of multi-cloud and multi-platform computing landscapes and the
challenges of compliance.
The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data
Center Services & Solutions report for Germany evaluates the
capabilities of 100 providers across six quadrants: Managed
Services for Large Accounts, Managed Services for Midmarket,
Managed Hosting for Large Accounts, Managed Hosting for Midmarket,
Colocation Services for Large Accounts and Colocation Services for
Midmarket.
The report names PlusServer as a Leader in three quadrants. It
names Arvato Systems, Atos, Axians, CANCOM, Claranet, DATAGROUP,
Deutsche Telekom (TDG), Kyndryl, q.beyond and T-Systems as Leaders
in two quadrants each. The report names Accenture, All for One
Group, Capgemini, Computacenter, CyrusOne, Datacenter One, DXC
Technology, Equinix, Fujitsu, Infosys, Interxion (Digital Realty),
ITENOS, KAMP, maincubes, Materna, myLoc (WIIT), noris network, NTT
DATA, NTT Global Data Centers, Pfalzkom, Rackspace Technology,
STACKIT, Telehouse and TelemaxX as Leaders in one quadrant
each.
In addition, akquinet and AtlasEdge are named as Rising Stars —
companies with a “promising portfolio” and “high future potential”
by ISG’s definition — in one quadrant each.
Customized versions of the report are available from Adacor,
CANCOM, ITENOS, KAMP, noris network, STACKIT and TelemaxX.
The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data
Center Services & Solutions report for Germany is available to
subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only
service provider evaluation of its kind to combine empirical,
data-driven research and market analysis with the real-world
experience and observations of ISG's global advisory team.
Enterprises will find a wealth of detailed data and market analysis
to help guide their selection of appropriate sourcing partners,
while ISG advisors use the reports to validate their own market
knowledge and make recommendations to ISG's enterprise clients. The
research currently covers providers offering their services
globally, across Europe, as well as in the U.S., Canada, Brazil,
the U.K., France, Benelux, Germany, Switzerland, the Nordics,
Australia and Singapore/Malaysia, with additional markets to be
added in the future. For more information about ISG Provider Lens
research, please visit this webpage.
A companion research series, the ISG Provider Lens Archetype
reports, offer a first-of-its-kind evaluation of providers from the
perspective of specific buyer types.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading
global technology research and advisory firm. A trusted business
partner to more than 800 clients, including more than 75 of the
world’s top 100 enterprises, ISG is committed to helping
corporations, public sector organizations, and service and
technology providers achieve operational excellence and faster
growth. The firm specializes in digital transformation services,
including automation, cloud and data analytics; sourcing advisory;
managed governance and risk services; network carrier services;
strategy and operations design; change management; market
intelligence and technology research and analysis. Founded in 2006,
and based in Stamford, Conn., ISG employs more than 1,300
digital-ready professionals operating in more than 20 countries—a
global team known for its innovative thinking, market influence,
deep industry and technology expertise, and world-class research
and analytical capabilities based on the industry’s most
comprehensive marketplace data. For more information, visit
www.isg-one.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220715005041/en/
Press Contacts:
Philipp Jaensch, ISG +49 151 730 365 76
philipp.jaensch@isg-one.com
Matthias Longo, Palmer Hargreaves for ISG +49 152 341 464 63
mlongo@palmerhargreaves.com
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