Key findings: Data center services
This report on data center services offers a comprehensive analysis of the US supply market, regional and global spend dynamics, buyer ecosystem, and cost-saving opportunities.
The supply market for data center services will witness an increase in the spend momentum, owing to the growing adoption of IoT. According to experts, the IoT market will surpass valuations of over $510 billion by 2021. This technology not only allows users to collect, transmit, and store relevant data but also helps firms to monitor equipment status in real-time and minimize downtime. In the retail sector, IoT allows users to collect and monitor customer data from sources such as social media and video surveillance. The experts believe that the high preference for IoT technology will drive the demand for data storage and analysis facilities, globally. To know more about the exact year-over-year spend growth potential, download a free sample report.
Procurement insights delivered
Written from the perspective of the buyer and the supplier, this procurement market intelligence report on data center services offers actionable information on the global and regional spend potential. Additional information includes an analysis of the suppliers’ cost structure, total cost of ownership, pricing models, supply chain margins, and much more.
Key insights offered in this data center services sourcing and procurement report will help the buyers:
- Identify best pricing models and cost drivers
- Assess supply chain margins and category pricing dynamics
- Develop strategic sourcing and category management strategies
- Understand the spend potential within the market
Analyze the global category spend for data center services
The growing demand for cloud services is a crucial factor influencing the spend growth rate of the category. According to the data center services procurement research report, the suppliers will witness an increase in the demand for private, public, and hybrid cloud services. The ability of cloud services to reduce the dependence on internal IT hardware and improve access to data, reliability, and scalability will spur its demand among enterprises, globally. For most suppliers, over 28% of their data center services’ demand comes from the cloud services sector. This is a strong indicator of how much this category’s growth is dependent on the cloud services sector. For more information on the spend growth rate for the period of 2018-2023, download a free sample copy.
This data center services procurement research report offers additional information on:
- Regional spend dynamics
- Spend opportunity for suppliers
- Spend segmentation by key regions
Optimize category spend for data center services
Bundling of services is one of the key strategies to reduce excess spend while purchasing data center services. Bundling services allows buyers to mitigate risks associated with managing multiple stakeholders for services such as hosting, maintenance, and support. It also helps reduce management complexities by simplifying the process of managing multiple stakeholders for different purposes.
This market intelligence report on data center services also offers a coverage of:
- Cost-saving opportunities
- Supplier-side levers
- Buyer-side levers
Develop strategies based on regional spend data
APAC is expected to witness a rapid increase in the spend growth momentum over the next couple of years. This year alone, the spend on data center services surpassed $44 billion, driven by the rapid digitization of the BFSI sector and growing stringency of data storage regulations in APAC. The rising preference for digitization, especially in the BFSI sector, will spur the demand for hosting services that can offer scalability, data security, and efficiency.
Regional spend information offered in this data center services procurement research report includes an analysis of geographies such as:
- North America
- South America
Devise strategies for the data center services supply landscape
Selecting suppliers on the basis of their average response time is a crucial strategy for measuring suppliers' ability to respond to clients’ needs and the time taken to resolve issues. It demonstrates the preparedness of suppliers and their ability to tackle unforeseen changes. Following such a strategy can help buyers reduce excess spend while procuring data center services.
This data center services sourcing and procurement report identifies the major costs incurred by suppliers and offers a coverage of:
- Supplier relationship management strategies
- Technology-facilitated procurement strategies
- Supplier market outlook – US market insights
Build effective category management strategies for data center services
Monitoring suppliers’ adherence to data security regulations is crucial for enterprises looking to purchase data center services. Today, data security is a major concern for most buyers since data centers store and process their internal data as well as the data of customers. Due to the recent increase in the instances of data security breaches, stringent regulations that require buyers, such as those belonging to the healthcare and financial services sectors, to ensure the confidentiality of the information of their customers have been implemented. Adhering to regulations such as HIPAA, SSAE 16/SAS70-II, SOX, PCI-DSS, and ISAE340 will help suppliers to retain prospective and existing clients.
Key insights offered in this market intelligence report on data center services will help the buyers identify:
- Global and regional category risks
- Supplier and buyer KPIs
- Risk management strategies
Identify major category enablers and procurement models
According to the experts, following a centralized procurement model will enable buyers to maximize cost-savings. A centralized procurement process helps in spend consolidation and ensures consistency in buyers' operations. Most buyers prefer suppliers who follow such a procurement model since it improves data security by simplifying the supplier selection process.
This market intelligence report also offers information on the procurement models of industry leaders and includes an analysis of:
- Centralized models
- Center-led/ partially center-led models
- Decentralized models
- Coordinated models
Actionable information on the top suppliers of data center services and risks faced while procuring data center services is offered in this report. Download a free sample to understand the complete scope of coverage.
Key Features of Report (2017)
Procurement Best Practices
Cost Saving Opportunities
Supplier Capability Matrix
Data Center Services - Category Spend Analysis
According to our latest data center services procurement strategy report, increased demand for cloud computing, mobile services, and social media analytics globally, especially in APAC and Europe is one of the key growth contributors of the data center services industry. The rise in demand from sectors such as banking, insurance, telecom, and government due to growing data storage and networking requirements also attributed to the growth of data center services.
Data Center Services – Procurement Best Practices
Buyers must engage with suppliers that can ensure participation and collaboration of cross-functional teams offer cost-effective logistics. Buyers must ensure the participation and collaboration of related cross-functional teams (IT and procurement) in category management and planning activities.
Data Center Services - Procurement Challenges
Based on the analysis in this data center services procurement strategy report, one of the major procurement pain point experienced by the buyers is keeping pace with rapidly evolving technology. The procurement specialists predict that the buyers must engage with the suppliers that use hyper-converged infrastructure and plan for scalability that can help accommodate technological advancements.