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Outsourcing holds key to European colos

Europe set for growth in collocation and cloud services over the next four years.

By Joao Lima

The European data centre market is heading towards an infrastructure outsourcing boom, according to BroadGroup Consulting.

The firm said outsourcing to third-party data centres will be sustained and reach 40% of the overall market by 2019.

In its ‘Data Centre Europe 6’ report, the company has revealed that Europe represents 27% of global market revenues for third-party data centres.

The European collocation industry is also growing 9% to 12% year on year, according to the consulting firm.

The report also shows a shift in the market where customers are focusing more on total cost of ownership, wider IT and cloud issues and power efficiency.

Steve Wallage, MD of BroadGroup Consulting, said: "The collocation market retains good growth of 9-12% per year and impressive margins while hosting and IaaS, covered extensively in this report for the first time, will enjoy higher growth rates with IaaS at 35-40%."

Equinix’s £2.3 billion acquisition of TelecityGroup in May will establish the colo company as the sector leader with 9% share of the market by 2016.

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