TCL (Tariff Consultancy Ltd), the specialist research company in Data Centre pricing, forecasts that Telecom Providers will see significant new growth in revenues from developing their new Data Centre facilities with the flexibility to cater for multiple hosting, cloud, networking and power requirements.
TCL’s New Telco Data Centre - Pricing for the New Telecoms Data Centre – 2014 to 2019 report is based on a TCL survey of 57 key Telecom Providers around the world who have developed their own Data Centre infrastructure. From the survey the report identifies over 2,200 Telecom Provider Data Centre facilities with around 2.9 million square metres of space available - forecast as of the end of 2014.
Selected Telecoms Providers are now spending from USD $100 million up to USD $300 million per facility on developing large campus-based Data Centre facilities - with multiple Data Halls to cater for cloud services across multiple countries. Other Telecom Providers are investing in Modular Data Centre (MDC) designs, which allows new Data Centre space to be deployed on an incremental basis in line with customer demand.
The New Telco Data Centre is above all now becoming a flexible Data Centre, with infrastructure used for internal networking, equipment, hosting, managed services and IT services as well as the traditional housing, colocation and IP connectivity services – and able to cater for a range of services and customer needs.
Although IP connectivity, housing and colocation remain core products offered by all of the Telecom Providers, there has been a migration towards cloud services. The key hosting and IT applications (such as server hosting, security and disaster recovery & back up services) are being virtualized and offered as an on-demand service - using a variety of flat rate pricing models.
The Telecom Provider is becoming more circumspect about bidding for large IT outsourcing deals and are instead providing partial outsourcing of individual applications or services using a virtualized on-demand platform. Pricing is based on a usage fee per hour or per month – which may also be based on a per device or per user basis.
The TCL survey discovers that cloud services are now being offered by 52 out of the 57 Telecom Providers in the survey - with the migration to new cloud services being a key driver for the development of new flexible Data Centre facilities by the Telecoms Provider worldwide.
TCL also forecasts that the change-over to new larger high specification Data Centre facilities by the Telecoms Provider will allow higher average pricing per rack or per square metre to be charged over time as the operator moves up the value chain by offering higher IT power densities.
Additionally, as enterprises – and particularly companies in the SME segment – are only starting to become aware of the scalable benefits of cloud services, there remains scope for considerable growth in Telecom Provider cloud revenue as new enterprises migrate their applications to the cloud for the first time.
Although cloud pricing will remain under competitive pressure, TCL forecasts that the growth in service volumes will outweigh the price declines over time.
Overall New Data Centre revenues are forecast by TCL to increase by 28 per cent per annum over the 5 year period from the end of 2014 - from almost USD $3.1 billion per annum (2014) up to almost USD $7.5 billion per annum (2019).
Finally, TCL also forecasts that New Data Centre space will increase from over 2.9 million square metres (2014) up to 3.7 million square metres (2019) – an increase of almost 6 per cent per annum (but from a already high installed base as space becomes more utilized over time).
“The availability of new high quality New Data Centre stock will be critical in hosting new IT and cloud services for the Telecoms Provider,” says Margrit Sessions, Managing Director of TCL.
“Increasingly Telecom Providers will have a simple choice to make, whether to invest in their own Data Centre stock to cater for the range of SLAs, power and performance required by their customers or whether to outsource to other Data Centre specialists if they are to stay in the game of offering their own cloud services,” she adds.
About The New Telco Data Centre - Pricing for the New Telecoms Data Centre – 2014 to 2019 report – Provides a survey of Data Centre facilities from 57 Telecoms Providers in 33 countries worldwide with 1,620 facilities in total. The report analyses the main products offered from the Data Centre, as well as key pricing and space trends. It provides a 5 year forecast for space and revenue from the end of 2014 to 2019 based on the 57 Telecoms Providers surveyed. More information on the report can be found at - www.telecomspricing.com or www.datacentrepricing.com.
About Tariff Consultancy Ltd (TCL) – TCL is a London-based international telecoms pricing research and consultancy organization. The company provides a range of subscription based Price Tracker services - including the Data Centre Price Tracker subscription service which provides average Data Centre pricing across 14 European countries on a quarterly basis. TCL also provides a series of one off Data Centre Pricing reports by country, continent or by topic – including the recently published Pricing the Cloud report which surveys cloud computing pricing worldwide. More information on TCL can be found at – www.telecomspricing.com