Abstract
This IDC study (which is a translation of the Japanese report IDC #J7250108,)
presents the analysis of the Japan datacenter service market in 2007 and the
2008-2011 market forecast. The Japan datacenter service market is expanding at
a high growth rate owing to the growing use of IT outsourcing. More companies
are using IT assets such as servers placed at external datacenters instead of
operating them within their premises. The Japan datacenter service market in
2007 is believed to have registered a year-on-year (YoY) growth rate of 14.3%
to reach 677.6 billion yen. IDC forecasts that the market will maintain steady
growth to reach 1,104.5 billion yen in 2011, with the average annual growth
rate (CAGR: Compound Annual Growth Rate) of 13.0% between 2007 and 2011.
Both the collocation market and the hosting market are being divided into two
directions - commoditized services and services with high added values. The
datacenter service market segments that are being commoditized will see
intensified price competitions. Service providers will have to maintain the
profitability of their datacenter service businesses by emphasizing the
advantages of using high value-added services," analyzes Mimei Ito, manager, IT
Service Research, IDC Japan.
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