Data Center Outsourcing Market by Type of Services (Cloud Hosting, Colocation Services, Managed Hosting), Enterprise Size (Large Enterprises, Small & Medium Enterprises), Vertical - Global Forecast 2024-2030

Data Center Outsourcing Market by Type of Services (Cloud Hosting, Colocation Services, Managed Hosting), Enterprise Size (Large Enterprises, Small & Medium Enterprises), Vertical - Global Forecast 2024-2030

The Data Center Outsourcing Market size was estimated at USD 145.50 billion in 2023 and expected to reach USD 156.10 billion in 2024, at a CAGR 7.49% to reach USD 241.29 billion by 2030.

Data center outsourcing is a strategic business model where organizations delegate the management and operation of their data center facilities to a specialized third-party service provider. This model encompasses the outsourcing of hardware, software, and personnel responsibilities that are integral to the running and maintenance of data center operations. The primary aim is to optimize operational efficiencies, mitigate risks, and reduce capital and operational expenditures associated with running an in-house data center. The growing inclination towards cloud services by enterprises for scalability, flexibility, and cost-effectiveness is significantly driving market growth. In addition, Organizations continuously seek ways to reduce operational costs, propelling the adoption of outsourcing models. However, the fear of data breaches and loss of control over data is a major concern for clients, affecting their decision to outsource. Furthermore, Innovations in IT infrastructure, such as edge computing and 5G, are expected to offer new prospects for the data center outsourcing market.

Regional Insights

The American region market is characterized by high demand for advanced and scalable IT infrastructure solutions. The region is witnessing significant investments in green data center technologies, reflecting a growing emphasis on sustainability. Companies are increasingly prioritizing security and compliance, driving demand for providers that offer robust data protection measures. The data center outsourcing market in the EU is shaped by stringent data protection regulations, including GDPR. There is a strong focus on data sovereignty and security. European customers prioritize providers that offer transparent compliance with local and regional regulations alongside the ability to support sustainable operations. In the Middle East, the market is evolving with a growing emphasis on digital transformation across sectors. Customers in the Middle East value scalability and flexibility in outsourcing arrangements. The APAC data center outsourcing market is booming, fueled by businesses' digital transformation initiatives and the government's push for cloud computing. The countries across the region are seeing rapid advancements in AI and big data technologies, driving the need for high-performance computing infrastructure.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Data Center Outsourcing Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Growing inclination towards cloud services by enterprises
Increasing demand for cost reduction and operational efficiency from enterprizes
Rise in the number of hyper-scale data centers for analytic applications

Market Restraints

Lack of expertise and skilled professionals

Market Opportunities

Technological innovations in edge computing and 5G
Integrating automation and artificial intelligence for efficient data center management & predictive maintenance

Market Challenges

Concern associated with the data breaches and loss of control over data

Market Segmentation Analysis

Type of Services: Growing utilization of colocation services for the security and reliability of a data center
Vertical: Increasing digitalization across healthcare & life sciences accelerating adoption of data center outsourcing services

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Data Center Outsourcing Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Data Center Outsourcing Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Google to Invest USD 1 Billion in United Kingdom Data Centre

Google has initiated the construction of a new data center in Waltham Cross, Hertfordshire. Occupying a 33-acre site, this new facility represents a USD 1 billion investment into the UK's digital economy. Set to bolster Google Cloud operations and user services such as Google Workspace, Search, and Maps, this development underscores Google's role in driving forward technological innovations and cloud capabilities within the region.

NTT DATA Launches Security Management Outsourcing Service

NTT DATA is set to revolutionize the landscape of security management with the introduction of its Managed Detection and Response (MDR) service. This innovative service, projected to achieve global expansion within the fiscal year, is designed to proactively prevent security incidents and mitigate any potential damages.

Rimini Street formally launches Rimini ONE, an end-to-end outsourcing solution

Rimini Street, Inc., a company known for its unparalleled enterprise software support and services, including being a leading support provider for Oracle and SAP software along with partnerships with Salesforce and AWS, introduces Rimini ONE. This premier outsourcing service program is meticulously crafted to address the growing demand for comprehensive outsourcing solutions.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Data Center Outsourcing Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Data Center Outsourcing Market, highlighting leading vendors and their innovative profiles. These include Accenture PLC, Amazon Web Services, Inc., Atos SE, Bridge Data Centres, Capgemini SE, CGI Inc., Cognizant Technology Solutions Corporation, Dell Inc., Ensono, LLC, Equinix, Inc., Fujitsu Limited, HCL Technologies Limited, Hitachi, Ltd., HP Inc., Infosys Limited, International Business Machines Corporation, Kyndryl Inc., Lumen Technologies, Inc., Microsoft Corporation, NTT DATA Corporation, Oracle Corporation, T-Systems International GmbH by Deutsche Telekom AG, Tata Consultancy Services Limited, Tech Mahindra Limited, Unisys Corporation, and Verizon Communications Inc..

Market Segmentation & Coverage

This research report categorizes the Data Center Outsourcing Market to forecast the revenues and analyze trends in each of the following sub-markets:

Type of Services
Cloud Hosting
Colocation Services
Managed Hosting
Enterprise Size
Large Enterprises
Small & Medium Enterprises
Vertical
BFSI
Government & Defense
Healthcare & Life Sciences
IT & Telecommunications
Manufacturing
Media & Entertainment
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year