Equinix and Digital Realty Lead in an Increasingly Global Colocation Market
RENO, NV, August 27, 2013
New Q2 data from Synergy Research Group shows that the ten colocation market leaders in aggregate accounted for 34% of all colocation revenues and on average have a colocation facility footprint spanning eleven countries. While Equinix and Digital Realty are the clear market share leaders, it is NTT that has the broadest geographic scope with colocation facilities in 21 countries. DuPont Fabros was the leading operator that has a single-country focus – it was ranked number twelve by quarterly revenues. Despite the positive impact of cloud services growth on the service provider colocation segments, Synergy’s colocation forecast shows annual growth rates in the US, Japan and other well-developed markets dropping below 7%, emphasizing the importance of higher-growth under-developed countries to colocation market leaders.
Total colocation revenues generated in Q2 amounted to $5.2 billion, with retail operations accounting for 78% of the total and wholesale 22%.Carrier neutral colocation accounted for 60% of retail revenues. Total colocation revenues grew 9% year on year with wholesale growth outstripping retail growth. By region North America accounted for the largest share of worldwide revenues (44%) but it was also the region with the lowest growth rate.
“While there is still a place for single-country colocation operators, it is quite clear that scale and geographic footprint are becoming increasingly important success factors” said Synergy Research Group’s John Dinsdale. “As the boom in cloud infrastructure services continues the mix of colocation business will continue to tilt in favor of globally oriented service provider customers and away from the enterprise, further favoring large-scale multi-national operators. It is no coincidence that both Equinix and Digital Realty continue to gain market share despite the plethora of competitors in the market.”
About Synergy Research Group
Synergy Research Group, now part of TechInsights, delivers quarterly analyses of global IT and Cloud markets, offering detailed breakouts of vendor revenues and shipments by segment and region. Market shares and forecasts are provided through Synergy Interactive Analysis (SIA™) — the industry's only fully proprietary SaaS platform purpose-built for market share and forecasting analytics.
For more than 25 years, Synergy has been a trusted source of quantitative research and market intelligence across emerging communications and technology sectors. By combining syndicated research with specialized consulting, we deliver actionable intelligence to marketing and strategy executives worldwide.
A trusted source of accurate market data, Synergy is cited by industry leaders as well as leading financial, business, and trade publications such as The Economist, The New York Times, The Wall Street Journal, United States Federal Reserve Board, NPR, Forbes, Bloomberg, Financial Times, Bank of England, Fortune, and The Guardian.
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