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Data centres are the ‘strategic service hubs’: Ovum

Zafar Anjum | July 13, 2012
A new report sheds light on telcos and data centres becoming the strategic service hub for new enterprise ICT services.

Data centers are becoming the strategic service hub for new enterprise ICT services, said the independent telecoms analyst firm Ovum in a new report.

Global carriers are increasing investment in data centers and each carrier has a different approach based on the individual carrier's capital available, service portfolio and propensity to partner, said the analyst firm in a statement.

"Global carriers are expanding outside the traditional franchise regions as they meet the demands of their MNC customers," said Mike Sapien, principal analyst, Enterprise Telecoms at Ovum and author of the report. "This will lead to different approaches as there are different customer targets, regional priorities and service portfolios for each of these global carriers."

According to the report, nearly all global telcos are consolidating their data centres within their home regions typically and also expanding into new regions with a single major data centre location.

As a result, telcos are increasing their investment into fewer premium data centres globally and upgrading the facilities that house their advanced cloud services. Some global carriers are using third-party data centre operators (e.g. Equinix, Interxion) to expand globally as well.

"This may seem like conflicting trends but it is all about focus and concentrating on fewer, higher quality data centres to provide global advanced and cloud-based ICT services," said Sapien. "The long-term prospects for global expansion are to start with one primary regional location and then expand incrementally to meet customer demand. It is also likely and prudent to invest where and when required based on country regulations or application performance reasons. " 

Another dynamic of this investment will be the mix of ecosystem partners within the carrier data centres, said the report. It is all part of building the appropriate ecosystem within the data centre for the carrier's service portfolio.

"Some enterprise customers of the global carrier may be a potential partner either in sharing risk (e.g. SITA and Orange) or in providing related services to other non-carrier customers (e.g. storage services). This shows that there is room and a need for the global carriers to differentiate by developing their individual ecosystem of partners," said Sapien.



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