Multi-tenant Data Centers Market: Trends and Opportunities for the Industry by 2017 - 2027

In today’s world, business processes in enterprises strive on data center infrastructure, which caters the IT needs of an organization by storing, processing and serving a large amount of data in a server. As business processes are expanding rapidly, there is a surge in demand for data centers resulting in the evolvement of multi-tenant data centers. Multi-tenant data centers work on an architecture which caters multiple clients with a single instance of a software application, with clients having a shared affinity at some level. Generally, in a multi-tenancy data centers service, infrastructure management is done by the service provider and the end-user unit operates the provided service. Depending on the business requisite and regulations a tenant compartment may sweep across physical boundaries, organizational boundaries or even between two different enterprises.

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Multi-tenant data centers deploy infrastructure which perfectly figures out how to deliver more with few resources resulting in the reduction of the capital expenditures in data centers. Companies are adopting the multi-tenant infrastructure as it also caters the need of a quick response in business processes in this competitive environment and also overcomes the challenge of finding skilled IT staff in different geographical regions where the enterprise is located.

The ever growing internet traffic is the major driver for the growth of multitenant data centers market. Moreover, factors such as continuous up gradation in data centers resulting in obsolescence in existing data centers, increase in demand for IT services, and increased IT spending are driving the growth in multi-tenant data center market. Also, low operational costs, quick response and deployment, and technical advancements in IT are also some important factors resulting in the growth of multi-tenant data centers market. However, data security concerns and inflexibility of some multi-tenant data centers are some challenges faced by multi-tenant data centers market.

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Multi-tenant data centers market can be segmented on the basis of application, end-user vertical, and region wise. On the basis of application, it can be further segmented into public cloud and private cloud. By end user vertical, it can be sub-segmented into IT and Telecom, Healthcare, Defence, Manufacturing, Retail, Media and Entertainment, Food and Beverages, Energy and Utility, and Others. Region wise, Multi-tenant data centers market can be segmented into North America, Latin America, Asia Pacific, Japan, Eastern Europe, Western Europe, and Middle East & Africa.

North America region is the largest market for multi-tenant data centers due to the presence of wide variety of end-user enterprises and competitive environment between them. In Europe, multi-tenant data centers market is also growing at a significant pace due to rise in business demands and IT needs. Multi-tenant data centers market growth in Asia-Pacific region is the fastest due to large scale outsourcing of managed hosting services in this region. Latin America and Middle East multi-tenant data centers market is at an emerging stage.

CenturyLink, Cisco, IBM Corporation, Digital Realty, Equinix, Inc., RACKSPACE, Global Switch, Level 3 Communications, and NTT Communications Corporation, are some of the key players in multi-tenant data centers market.

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