With indications that the ANZ datacentre market is set for consolidation, datacentre providers are actively looking to expand their services range.
That's the view of analyst firm IDC, who claims such expansion is leading to datacentre providers looking for opportunities to engage with one another and form strategic partnerships.
"The Australian and New Zealand datacentre market is a mosaic of provider types and service offerings," says Glen Duncan, Research Manager - Infrastructure ANZ, IDC
"In a rapidly evolving industry, there are many ways that datacentre providers can maintain competitive differentiation.
"Key strategies include investments in technology, mergers and acquisitions, traversing the datacentre stack, and partnering with other businesses that have complementary capabilities."
Citing recent examples of such activities, Duncan mentions hosting provider Rackspace, itself housed in Digital Realty's Erskine Park datacentre, extending into cloud-related services as well as iseek in Sydney partnering with Equinix for those clients who require the redundancy of dual sites.
In the IDC report, Demystifying the ANZ Datacentre Provider Market, Duncan adds that the overall ANZ datacentre market is a complex one, with over 70 providers across a range of provider types (Facilities Operator, Hosting Provider, ICT Vendor, Service Provider, Telco Provider) now offering a range of services.
Increasingly the provider types are offering a suite of services, resulting in significant cross-over and direct competition between different provider types.
"Coupled with the increasing scale and reach of multinational corporations and ICT Vendor datacentres, smaller and specialist datacentre providers will need to find alternative avenues for differentiation," he adds. "One opportunity is in energy efficiency.
"IDC sees an increase in demand on the customer side for datacentres with a 1.2-1.3 PUE rating, but with many datacentres in operation for over 10 years, there is opportunity there to leverage newer technology to drive down the PUE rating. "
Duncan adds that telecommunications providers especially are finding many opportunities for a go-to-market strategy with other providers.
"Collaborations and partnerships between businesses in adjacent areas (and even between competitors) can be a strategy that quickly enables an organisation to develop its capabilities, broaden its portfolio of integrated services and innovate in order to continually develop competitive advantage," he says.