Clipperton Finance, a leading European corporate finance boutique serving the technology and media industries, has released a Research Paper covering the evolution and current trends of the Data Management market.
The essentially virtual “New Economy”, is in fact inherently tied to the very physical world of traditional Data Center and Telecom networks. In this era of online advancement, these physical networks are placed under unprecedented new demands through the proliferation of online rich media and cloud computing leading to an explosion in storage capacity and networking needs. In turn, the virtual data underworld is undergoing a true revolution.
One consequence is remarkable: as the cost and complexity of managing Data Centers increases exponentially, this function is more and more outsourced by the large companies that previously managed their own infrastructure on-site.
This paper focuses on this Outsourced Data Center market and demonstrates how this particular value chain is maturing and organising itself:
· Upstream: a new category of players have rapidly emerged – the Wholesalers.
· Downstream: Hosting offerings are experiencing significant commoditizing pressure and need to act fast.
· In the middle: the “Colocators” need to find there position in this newly organized ecosystem.
Today this value chain is dominated by large US companies, but significant European exceptions exist: OVH in France, Telecity in the UK, 1&1 in Germany.
The paper also features European players that we deem “ones to watch”.