Data Centers Business Outlook 2010

Written by Julianus Yu

The global economy of 2009 is something that we all wish is never repeated. This is true for the entire business and industrial sector in general and data centers were no exception. IT budgets plummeted during the recession and there was an atmosphere of uncertainty. But with time and some promising signals from the real estate and stock markets there appears to be a faint light at the end of the tunnel.

Across all segments that touch the data center industry there has been a decline, but nothing to the extent that other industries have experienced. Job losses have been prevalent and in comparison to the other industries job titles directly related to the data center have only seen a small decline. Segments of the data center market that have been impacted by decreased IT have been hardest hit, but this will not be for long according to most analysts.

The projections after the economy picks back up shows strong growth in the data center market. Experts have suggested that the outlook for data centers in the year 2010 is certainly good if not excellent and will continue to improve. Two main areas which would act as the pillars of strength this year are going to be virtualization and cloud computing. Both these concepts combined with some groundbreaking technologies will put a new lease on life in the data center sector.

Technologies such as cloud computing and virtualization will help to cut costs and boost growth. In addition, we foresee that data center real estate for both single and third party sourced space will continue to be in demand outpacing supply. Lastly, the power demands being placed on data centers today along with increasing costs of energy is creating new positions in the data center market for individuals who can specialize in data center design and efficiency.

The combination of IT budgets that are due to bounce back to help refresh equipment and outdated data center equipment, new technologies such as cloud computing and a lack of data center real estate are all coming to a head that is likely to cause a small burst of activity in the near future.

About Cloud Computing read on "What is Cloud Computing?" article.

Source: www.datacenterjournal.com