IHS Markit study: 145 companies control 40% of the global data center market

Today there are tens of thousands of telecommunications companies in the world and thousands of cloud service providers, hosting providers, and colocation providers. Every year more and more new companies are added to this number - the market is growing, and quite quickly. But, as usually happens, most of the market is controlled by a limited number of providers. According to the findings of a study carried out by HIS Markit experts, 40% of the global market belongs to the 145 largest companies.

The authors of this study argue that the market is constantly evolving, and very active. Only 10 years ago, the largest cloud service provider today, Amazon, built its first data center. And at the same time, the most powerful colocation provider in the world, Equinix, got its first data center campus in control. Now through Ashburn, USA, where this campus is located, there is a very solid part of global traffic.

Companies that are now engaged in providing colocation and cloud services are growing rapidly, capturing new market shares. These companies are expanding, rebuilding new and new data centers needed to cope with the growing flow of information generated. True, small new companies, according to experts from IHC Markit, find it rather difficult to gain a foothold in the current market, as telecommunications giants are gradually beginning to control new areas for themselves. They succeed due to tracking new trends in the market, and they succeed, it should be noted, quite well.
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All this, according to experts, can lead to the appearance of two significant consequences for the telecommunications services market.

The first is the possible volatility of the data center infrastructure market. The fact is that almost always, when the market begins to control a limited number of players, this market becomes unstable. One or two reckless actions, and the direction of market development may change significantly.

In addition, the fewer the players on the market, the easier it is for these players to negotiate with each other. Yes, this means, among other things, the possibility of negotiating among themselves about the pricing of various services at a certain level. And this concerns not only our own services, but also goods / services of third-party suppliers. If one of the major players is dissatisfied with cooperation with suppliers, it can make it so that none of the partners will work with these suppliers.

In the near future, according to representatives of IHC Markit, the share of the total area of ​​data centers of the largest telecommunications companies may be about 60% of all data centers in the world. So far, everything is developing in this direction, there are no significant obstacles that could prevent the expansion of the already large companies.



Some companies still prefer to use their own telecommunications infrastructure in order to work with their own data. But this is both difficult and expensive in most cases, so outsourcing is becoming an increasingly popular trend. Accordingly, providers of cloud and all other telecommunications services are becoming increasingly popular companies, continuing to expand. Is it bad or good? It will be possible to understand over time.