Tag: Digital Realty

Cloud rains profits

Posted on January 25, 2023 by - News

Public cloud service and infrastructure markets, operators and vendors’ revenue jumped 21 per cent to $544 billion in 2022.

New data from Synergy Research Group claims that the biggest growth was seen in infrastructure as a service (IaaS) and platform as a service (PaaS).

Annual revenue from these services grew 29 per cent to reach more than $195 billion, despite some headwinds from the strengthening US dollar and problems in the Chinese market.

In the other main segments, managed private cloud services, enterprise SaaS and CDN added another $229 billion in service revenues, having grown by an average 19 per cent from 2021.

Synergy said public cloud providers spent $120 billion on building, leasing and equipping their datacentre infrastructure, which was up 13 per cent from the previous year.

Datacentres continue to consolidate

Posted on January 8, 2018 by - News

Data centre Beancounters at Synergy Research claim that the value of data centre mergers and acquisitions doubled to $20 billion last year.

Synergy thinks that this is all down to service providers dumping facilities in favour of public cloud and co-location agreements.

It claimed that there was at least one “significant” deal secured every week last year, with datacentre giants Equinix and Digital Realty among those splashing the most cash.

John Dinsdale, chief analyst at Synergy, said the datacentre M&A activity was being driven by enterprises focusing more on improving IT capabilities and less on owning datacentre assets.

“That shift is driving huge growth in outsourcing, whether it is via cloud services, use of colocation facilities, or sale and leaseback of datacentres.

“The dramatic growth of cloud providers is also driving changes in the data centre industry, as data centre operators strive to help them rapidly increasing in scale and global footprint. We expect to see much more datacentre M&A over the next five years.”

On top of the $20 billion that changed hands last year, four deals worth a combined $2.6 billion have been confirmed but not yet completed.

The mass sales marked the reversal of a trend from five years ago when integrators and telcos were pouring investments into their facilities.