2. A brief introduction
About DCD
DatacenterDynamics is a full service B2B information provider
focusing on data center industry, headquartered in UK.
DCD provides a unique series of events tailored specifically to
deliver enhanced knowledge and networking opportunities to
professionals who design, build and operate data centres.
Every year, 49 established annual conferences are held in key
business cities across the world.
In 2013, more than 30,000 senior data center professionals
attended a DCD event, creating the most powerful forum in
the industry today.
About me
Lead Consultant, DCD Intelligence.
Previously worked for IDC and IHS.
Worked for over 26 years in ITC.
3. At DCD Intelligence (DCDi), we specialize in providing research, data and
analysis on the global data center industry. Our research covers the full
spectrum of companies and organizations involved in the industry,
including service providers, equipment and technology vendors and end
users from a range of industry sectors.
We provide a diverse selection of “off the shelf” and customized
research products that include reports, white papers, market forecasts,
presentations and company case studies. Our research employs a full
spectrum of research methodologies, from desk research techniques
through to industry-wide surveys and face-to-face and phone interviews
with clients.
With all our research we strive to incorporate our core values
Quality Integrity Collaboration
About DCD Intelligence
4. 2011
2012
2014
2011-2014 DCD Intelligence Global
Census
Quantitative snapshots of the scope and
direction of the global data center industry
From ALL sides of the industry
Enables comparisons between markets to track
individual market developments and forecasting
It brings the industry together to help raise
money for charity (“Engineers without Borders”)
2013
6. In 2007 the number of data centers
globally was roughly the same as the
number of oil fields (c. 70,000)
In 2014 the number of data centers globally is
roughly the same as the number of branded gas
stations in all of the G7 nations combined
(c. 200,000)
In seven years the number of data
centers has almost trebled
7. Data center white space continues to
increase, especially outsourced space
Source: DCD Intelligence
Squaremeters(million)
18.7%
16.6 18.7
21.2 23.5 24.8 25.9 26.6 27.2
1.4
2.3
2.8
3.5
4.2
5.8
7.4
8.8
0
5
10
15
20
25
30
35
40
2007 2008 2009 2010 2011 2012 2013 2014
In-House Colocated
2.3%
8. (*) derived from BP Statistical Review of World Energy 2013
(**) Based on Census 2013 population projections of maximum stated capacity including end user reporting of outsourced footprint
Data centers
375 TWh**
China 3,500 TWh(*) USA 4,250 TWh(*)
Japan 1,100 TWh(*)
UK 360 TWh(*)
India 1,050 TWh(*)
If the data center industry was a country, it
would be the 11th largest electricity consumer
13. • 2.7 billion+ people on the Net today (ITU, 2013)
• 1.5 billion smart phones users (2013 KPCB)
• 217 million tablet shipments (IDC 2013)
• 178 million portable PC shipment (IDC 2013)
More people joining the digital age
Internet users per 100 inhabitants
In 2015
• ICT spending will
exceed $3.8T
• Wireless data will be
the biggest ($536B)
and fastest-growing
(13%)
• Smartphones and
Tablets will generate
40% of all IT growth
14. Increasing capacity and efficiency of ICT hardware has
always been outstripped by demand
Driving increasing demand for storage
and compute capacity
• Exponential data growth – 80% CAGR compared to the 40% CAGR of Moore’s Law
• Growth in emerging markets is faster than mature regions
• This has implications for storage and compute requirements
• Virtualization of hardware partly closes the gap
With thanks to
Professor Ian
Bitterlin
15. Increased data center dependence fuels
resource concerns
72.9% 72.8% 68.2%
60.5%
51.1% 51.1%
39.9% 34.8%
0
10
20
30
40
50
60
70
80
Powercosts
Reducedoperating
budgets
Reducedcapital
budgets
Skillsshortage
Poweravailability
Laborcosts
Lackofsuitablereal
estatefordevelopment
Lackoflocal
outsourcingfacilities
Source: DCD Intelligence
(% of census respondents who expect specific issues to
significantly impact their future operations)
17. Turkey: data center space,
2011-14 (square metres)
Source: DCD Intelligence
Square
metres
2011 2012 2013 2014
% average
y-o-y
increase
In-house 416,350 425,220 430,700 436,150 1.6%
Colocated &
third party
133,650 144,780 159,300 173,850 9.2%
Total 550,000 570,000 590,000 610,000 3.5%
18. Turkey: power consumption,
2011-13 (MW)
Source: DCD Intelligence
5.1%
3.0%
Growth of
around 4%
in 2014 (to
880 MW)
780
820
845
740
760
780
800
820
840
860
2011 2012 2013
19. Turkey: data center investment,
2012-14 (in US$ mn)
Source: DCD Intelligence
14.5%
12.7%2,750
3,150
3,550
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2012 2013 2014
20. Turkey: data center investment
by avenue, 2012-14 (US$ million)
Source: DCD Intelligence
20.0%
13.6%
13.0%
Investment
growth in 2014-15
will be higher in
the outsourcing
category
compared with in-
house data center
IT optimization or
facility
investments.
16.7%
12.0%
11.5%
1,150 1,300 1,450
1,100
1,250
1,400
500
600
700
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2012 2013 2014
Outsourcing IT Optimization Facility Infrastructure
21. Turkey: data center investment
Drivers at middle 2014 (% of respondents)
Source: DCD Intelligence
2.6%
2.6%
2.6%
10.5%
13.1%
15.7%
15.8%
15.8%
18.4%
18.4%
21.1%
23.6%
23.6%
26.3%
28.9%
28.9%
26.3%
23.7%
26.3%
10.5%
23.7%
7.8%
13.1%
21.0%
18.4%
28.9%
34.2%
21.0%
0% 5% 10% 15% 20% 25% 30% 35% 40%
To attract different client groups
To increase competitive differentiation
To be 'greener' & more sustainable
To reduce operating costs
To improve space use
End of facility life
To meet legislative or accreditation requirements
To increase power into facility
To support the requirements of big data
To increase redundancy
Changing corporate & client requirements
To improve network performance
To enable virtualization / cloud computing development
Increased IT capacity requirements
To improve security
Next 12 months Past 12 months
22. Turkey: % of footprint outsourced
comparative to other markets 2014
Source: DCD Intelligence
14% 13%
19%
21%
18% 17%
19%
11%
21% 21%
9%
8%
11% 10%
7%
5%
8%
4%
6%
14%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Turkey Brazil Germany France India MENA China Russia UK USA
%Footprint(unweighted)
Colocated Racks External cloud deployment
23. Turkey: % of footprint
outsourced by Sector, 2014
Source: DCD Intelligence
18%
14%
3%
24%
20%
12%12%
5%
2%
25%
21%
4%
0%
10%
20%
30%
40%
50%
60%
Colocation Finance Government Industrial IT services Personal,
business
services
Telco & Media
%SectorFootprint
Colocated Racks External cloud deployment
24. A hub market is based on the
intersection of several factors
Geographic &
access to
populations
Networks &
connectivity
A corporate
hub
Enterprise
Culture
Resource
Availability
Technological
& skills base
Hubs create &
support each
other e.g.
Financial,
corporate,
transport &
technological
hubs reinforce
one another
The siting of a
number of data
centers in close
proximity to
each other does
not in itself
create a ‘hub’
25. Key Emerging Cities grouped by Power
Demand (Census 2013)
Shanghai
Jakarta
Dubai
Sao Paulo
Moscow
RiyadhMexico City
Mumbai
Johannesburg
Bangalore
Kuala Lumpur
Beijng
Warsaw
Buenos Aires
Istanbul
Over 300 MW 100 - 200MW200 - 300MW Under 100 MW
26. Emerging City Concerns
about Availability of Capital:
15% 16%
11%
23%
17%
9%
6%
14%
17%
9%
13%
16%
12%
7%
9%
0%
5%
10%
15%
20%
25%
Bangalore
Beijing
Buenos Aires
Dubai
Istanbul
Jakarta
Johannesbur
g
Kuala
Lumpur
Mexico City
Moscow
Mumbai
Riyadh
Sao Paulo
Shanghai
Warsaw
% indicating significant concern about CAPEX shortage
% Fearing that
shortage of capital
will have significant
impact on their
operation over the
next 12 to 18 months
27. Emerging City Concerns about
Power Availability:
12%
11% 16%
8%
11%
9%
22%
9%
21%
25%
17%
11%
13%
18%
8%
0%
5%
10%
15%
20%
25%
Bangalore
Beijing
Buenos
Aires
Dubai
Istanbul
Jakarta
Johannesb
urg
Kuala
Lumpur
Mexico
City
Moscow
Mumbai
Riyadh
Sao Paulo
Shanghai
Warsaw
% indicating significant concern about black-outs/brown-outs
% Fearing that Power
Black-outs/Brown-outs
will have significant
impact on their operation
over next 12-18 months
28. Emerging City Concerns about
Decreasing OPEX budget:
36%
22%
16%
30%
22%
24%
32%
28%
42%
22%
28%
32%
26%
18%
26%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Bangalore
Beijing
Buenos
Aires
Dubai
Istanbul
Jakarta
Johannes
burg
Kuala
Lumpur
Mexico
City
Moscow
Mumbai
Riyadh
Sao Paulo
Shanghai
Warsaw
% indicating significant concern about budget decrease
% Fearing that
decreasing budget will
have significant impact
on their operation over
the next 12 to 18 months
29. Emerging City Concerns about Power Costs:
22%
35%
33%
22%
29%
42%
50%
31%
43%
7%
42%
22%
33%
20%
14%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Bangalore
Beijing
Buenos
Aires
Dubai
Istanbul
Jakarta
Johannes
burg
Kuala
Lumpur
Mexico
City
Moscow
Mumbai
Riyadh
Sao Paulo
Shanghai
Warsaw
% indicating significant concern about power costs
% Fearing that Power Costs
will have significant impact
on their operation over the
next 12 to 18 months
30. Emerging City Concerns about Skills:
44%
19%
33%
33%
29%
32%
25%
31%
36%
20%
32%
26%
38%
27%
14%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Bangalore
Beijing
Buenos Aires
Dubai
Istanbul
Jakarta
Johannesburg
Kuala LumpurMexico City
Moscow
Mumbai
Riyadh
Sao Paulo
Shanghai
Warsaw
% indicating significant…
% Fearing that Skills Shortage will
have significant impact on their
operation over the next 12 to 18
months
31. Emerging City Concerns about Local
Outsourcing Services and Facilities:
16%
16%
17%
33%
36%
5%
17%
8%
24%
5%
16%
13%
14%
7%8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Bangalore
Beijing
Buenos Aires
Dubai
Istanbul
Jakarta
Johannesburg
Kuala LumpurMexico City
Moscow
Mumbai
Riyadh
Sao Paulo
Shanghai
Warsaw
% indicating significant concern
% Fearing that Inadequate
Local Outsourcing Facilities
and Services will have
significant impact on their
operation over the next 12 to
18 months
32. Emerging City Concerns about Local
Outsourcing Services and Facilities:
19%
19%
28%
11%
29%
26%
16%
15%
36%
13%
18%
13%
24%
27%
21%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Bangalore
Beijing
Buenos Aires
Dubai
Istanbul
Jakarta
Johannesburg
Kuala LumpurMexico City
Moscow
Mumbai
Riyadh
Sao Paulo
Shanghai
Warsaw
% indicating significant concern
% Fearing that Inadequate
Access to Networks will
have significant impact on
their operation over the
next 12 to 18 months
33. Average rate of investment will increase by over 10% into 2015
Estimated total investment into data centers
13.7%
13.3%
12.5% 12.5% 12.4% 12.2%
11.5%
9.4%
9.0% 8.7%
7.9% 7.7%
7.2% 6.9%
4.7%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Rateofincrease2013to2014
34. Attractions and advantages of the
Istanbul data center market
• Strong demand for colocation and managed hosting presents
opportunities for service providers.
• Turkey’s geographical location makes it attractive as a “hub”
data center location.
• Strong interest and investment in cloud technologies present
opportunities for service providers and vendors.
• Hybrid outsourcing models combining colocation for mission-
critical applications and cloud deployment for non-mission
critical applications offer enterprises flexibility and saleability.
35. Challenges and concerns in the
Istanbul data center market
• Keeping energy costs low for data center operators will
depend on the success of the government’s energy strategy.
• Enterprise concerns about information security and data
protection in the cloud has potential to slow take-up of cloud
services.
• There is a need for international data security standards
which can be used as the basis for testing and certifying cloud
computing platforms.
• Political and financial uncertainties have potential to deter
foreign investors.
36. For more information contact:
Darran Blatch
darran.blatch@datacenterdynamics.com
+44 20 7426 8013
