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DUBLIN, Jan. 27, 2023 /PRNewswire/ — The “The Future of Data Centre Pricing” report has been added to ResearchAndMarkets.com’s offering.
The analyst herein provides an insight into data centre pricing adopted across the globe and the key trends to the Future of Data Centre Pricing.
The report quantifies the 10 key trends taking place in Data Centre Pricing worldwide. One of the trends identified is that Data Centre Providers are seeking to charge more for their ancillary services – Ancillary services are providing a useful source of additional revenue to colocation services and Data Centre Providers are making substantial new investments in DCIM services and cloud fabric services. Reported Data Centre financial results however seem to indicate that there is only a gradual increase in non-colocation services, as shown with an example.
The report also looks at Remote hands services which are being offered at a range of different pricing.
The analyst concludes that Inflationary conditions are likely to persist and pricing for rack space rentals is increasing in most markets by an average of around 2 percent per annum. There has been an increase in rentals in selected Tier 2 markets in particular driven by the introduction of wholesale capacity from cloud and hyperscale users.
The launch of new capacity increases price levels over time. Cloud Service Providers (CSPs) are building new Availability Zones (AZ’s) in Tier 2 markets including Athens, Israel, Madrid, Milan, Oslo, Stockholm, Turin, Vienna & Warsaw as part of a programme of deploying cloud services in new markets (partly to generate new users and to allay data sovereignty concerns).
The main pricing increase has been in power costs – Although energy costs are typically “passed through” power usage applied by a Data Centre Provider typically are applied with an extra margin to cover facility costs (with the exception of the USA market where Data Centres are prohibited from adding any additional power charge unless they are a registered utility).
The power costs applied vary by Data Centre Provider. The per kW rental rate applied is also increased by a factor to cover the facility’s operational cost, typically multiplied by a PUE (Performance Usage Effectiveness) factor of up to 1.5 times allowing an additional rental cost.
Data Centre Providers are seeking to diversify their business by introducing a range of new connectivity services. These include cloud fabric services (which provide access to a number of cloud providers using a virtualised online portal), metro connectivity services and IXP (Internet Exchange) services to connect to a range of ISPs.
Data Centres are investing in online portals and DCIM (Data Centre Investment Management) for service automation – in order to provide near real-time information – on current server utilisation and power usage. They are also set to introduce predictive analytics using machine learning and AI to forecast future usage.
Despite the investment in new technology and connectivity services the majority of Data Centre Provider revenues are derived from colocation services. And the rentals of Data Centres remain focused on dedicated cabinets or racks using long-term contracts and so are different from the virtualised on-demand services used by the CSP.
Data Centre rack space rentals are increasing over time. But there remains a wide range of average rack space pricing worldwide with considerable differences between regions. Average Data Centre rentals in the most mature markets such as Europe and North America are considerably lower than the newer Data Centre markets in the Asia Pacific and South America regions where rentals remain much higher.
Key Data Centre pricing is typically composed of a core rental for rack space plus a rental for the “right” to use an amount of power plus a usage charge per kWH (kilo-Watt Hour) which varies according to usage. Data Centre capacity continues to increase, particularly in Tier 2 markets where cloud operators are introducing services (in countries such as South Africa
The analyst finds that Data Centre Pricing is continuing to evolve worldwide as Data Centre Providers respond to a series of new challenges.
The challenges include:
Key Topics Covered:
Part One – An introduction to Data Centre Pricing
Part Two – The Future of Data Centre Pricing
Part Three – Key Trends & Conclusions in the Future of Data Centre Pricing
A selection of companies mentioned in this report includes
For more information about this report visit https://www.researchandmarkets.com/r/nowx0s-future-of?w=5
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
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SOURCE Research and Markets
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