The ongoing COVID-19 pandemic is driving an increase in demand for data centres to provide private and hybrid clouds in Australia, fuelled in part through the need for digitalisation and sustainability.
According to research firm Information Services Group’s (ISG) Provider Lens Next-Gen Private/Hybrid Cloud — Services & Solutions report for Australia, the data centre landscape is rapidly expanding beyond the traditional business centres of Sydney and Melbourne.
Out of 43 providers across managed services, managed hosting and colocation services, Telstra was named the top leader, while Fujitsu and Kyndryl were the leader in two groups each.
Meanwhile, Accenture, Datacom, Digital Realty, Equinox, HCL, Infosys, Macquarie Telecom, NextDC, NTT Data, Optus, Tata Consultancy Services (TCS), Vocus and Wipro were found to be leaders in one group each.
In addition, CDC Data Centres, Datacom and Rackspace were also highlighted as Rising Stars – businesses defined by ISG to have a promising portfolio and high future potential – in one quadrant each.
Now, with technology leaders needing to cover at least four major markets in Australia, smaller regions are becoming more important, ISG argued, and investment in localised solutions needs to increase.
“Australia is arguably the most competitive cloud services market in the world,” said Scott Bertsch, partner and regional head of ISG Asia Pacific. “Demand is growing and all types of providers are stepping up to meet it.”
As seen in other tech-related markets, the COVID-19 pandemic has generated an increase in demand for digitalisation, which can be supplied through data centre solutions. Furthermore, ISG noted this trend will continue as the report said the road to digitalisation is a “one-way street”.
The need for sustainable technology is also driving demand for data centres, particularly for a move towards greener data centre locations, energy systems and management.
Additionally, the recently elected Labor government is likely to increase sustainability requirements, ISG added.
Indeed, backing up ISG's points on sustainable data centres, Brisbane was chosen last week to host to a new $2.5 billion ‘Supernode’ data storage project, which has been touted as the "largest in the Southern Hemisphere".