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IT organisations looking to outsource their data centres or to co-locate key systems could face sharply rising prices over the coming year, according to industry experts at the Data Centres 2011 conference in Nice.

IT organisations looking to outsource their data centres or to co-locate key systems could face sharply rising prices over the coming year, according to industry experts at the Data Centres 2011 conference in Nice.

Michael Tobin, chief executive at the Telecity Group, told delegates that “mobile, video and cloud are the drivers while supply, particularly of high quality facilities is highly constrained.”

Fabrice Coquio, managing director of Interxion France, said that data centre hosting prices had risen by 15 to 20 percent over the last year and they look set to rise by at least 15 percent again this year.

“There is a structural gap in supply and demand and it is not going to get any less in the next two or three years in Europe,” he said.

Tim Anker, founder The Colocation Exchange, a pioneering brokerage in London, suggested that datacentre costs, particularly in core business centres such as London, will double in 10 years time.

A leadership panel – made up of senior executives from some of Europe’s leading data centre and hosting companies - agreed that despite supply constraints, enterprises would increasingly move to data centre outsourcing.

The Broad Group, which organised the Nice event, estimates that in Europe 13 percent of data centres are outsourced, versus 30 percent in the US, and the consensus among panellists at the event was that Europe would follow US trends.

Bernard Geoghegan, executive VP at Colt Data Centre Services, which this week launched a range of modular data centre products, added a caveat, saying many organisations would want to maintain their own data centres.

He also highlighted a trend for enterprises to develop a two tier approach to their datacentres, placing some apps and systems in high quality datacentres, when latency is business critical, and others in more remote locations where latency is less important.