×

DATA CENTER INDUSTRY IN RUSSIA: ANALYSIS OF COMMERCIAL AND INVESTMENT PROSPECTS

August 2015

Analytical Report (full version)

Request cost of the full version of the study: news@json.tv

Analytical Report (full version)

DATA CENTER INDUSTRY IN RUSSIA: ANALYSIS OF COMMERCIAL AND INVESTMENT PROSPECTS
DATA CENTER INDUSTRY IN RUSSIA: ANALYSIS OF COMMERCIAL AND INVESTMENT PROSPECTS
August 2015

DATA CENTER INDUSTRY IN RUSSIA: ANALYSIS OF COMMERCIAL AND INVESTMENT PROSPECTS

August 2015

To register or Log in, to download the file

Download file

+7 926 561 09 80; news@json.tv

Write, call, if you have questions

 

 

According to J'son & Partners Consulting, the Russian data center industry, including commercial and corporate venues for computer equipment with total area over 500 thousand square meters, has significant growth potential that surpasses the current pace of its development, which in its term is almost 20 times higher than the growth of the Russian IT-market in comparable prices in 2012-2014.

 

 

 

Thus, with the abundance of low-quality spaces to accommodate computer equipment (server rooms) in Russia, the amount of qualitative areas for commercial and corporate data centers deployed in our country is relatively small. It does not meet not only the promising, but also the current needs in high quality areas for data centers, which is especially important for the most dynamically developing industries, such as financial sector, trade, online business, etc. And modern technological approaches to the construction and operation of data centers provide a real opportunity for providing lower construction costs per unit of data center space, which are very significant at the moment and which are a major deterrent to development of data center business in Russia.

 

 

 

Key issues of the research

 

The main objective of this study is to determine the capacity of growth in demand for commercial data centers in Russia as well as to find effective ways to meet that demand based on objective data

 

 

Practical value of the research

 

This study provides an objective assessment of the growth potential of demand for quality areas for data centers in Russia and the ensuing evaluation of some investment projects which are focused on expansion of the existing data-centers and creation of new ones in Russia.

 

Evaluation of the consumption and demand potential is given detailed for each branch, which demands quality areas for data centers in Russia.

 

The research includes some practical recommendations to meet the potential demand in the conditions of deficit of investment resources needed for construction or reconstruction of data centers.

 

 

Target audience

 

The study is focused on organizations and individuals which are either already investing or considering investing in the industry of data centers in Russia, including both commercial and enterprise data centers.

 

 

Briefly on some results and approaches of the study

 

 

For a more correct assessment of the indicators which show the provision of Russian data centers with high-quality areas the authors defined not only the volumes of Russia's existing areas for commercial data centers, but also the total amount of corporate space used to place computing equipment and data storage. Not only commercial data centers but also the corporate sites have been classified according to their level of accessibility which has allowed to allocate quality areas for data centers from the total amount of space, as well as the space volume of server rooms that do not meet the minimum (Tier I) requirements to construction of engineering systems for data centers. To avoid distortion of figures for commercial data centers, during the market players survey, it was decided to refuse the evaluation of the market shares.

As a result the overall size of the Russian data center industry, including commercial and corporate data centers, was objectively determined for the first time, and the relative ratio of high-quality areas of large enterprises and organizations in all major sectors of the economy was calculated. In addition, the study analyzed the nature of the relationships between the main types of industry players-DPC (Fig. 1): commercial data centers, focused on colocation services, commercial data centers focused on providing cloud and IT services, traditional corporate data centers to be used as sites for internal automated systems, and data centers of providers of online services used both for internal needs and for provision of external services. Assessments of the achieved level of quality space availability in the data center industry are given for each of the major vertical consumers, both in their own premises, or rented. They were supplemented by estimates of the relative level of consumption of the "useful load" of the data center (servers and storage) industry-wise, per cost unit of production/services.

 

 

In general, this approach allows to determine that the level of availability of quality data center space differs depending on the industry by two orders of magnitude, which renders meaningless the assessment of its average level in the economy in whole.

 

Along with the assessment of some quantitative indicators for the provision level of areas for data centers and their demand growth potential by industry, the aim of the study was to identify trends and changes in the qualitative requirements for data centers, both technical and commercial. Since we are talking about capital-intensive projects with long payback periods, the depth of forecasting changes in such requirements to the data centers was chosen equal to 10 years, which corresponds.

 

 

Source: J'son & Partners Consulting

 

 

The study showed considerable potential for quantitative and qualitative growth of the data center industry in Russia, surpassing even the current pace of its development, which is almost 20 times higher than the growth of the Russian IT market in terms of comparable prices in the period of 2012-2014

 

However, for realizing the existing potential, the cost of construction and operation of data centers with high availability should be reduced. Currently, during some shortage of long-term investment sources, it becomes unacceptably high for deployment of new and reconstruction of existing corporate data centers and for construction/renovation of commercial data centers.

 

The industry needs new approaches to creating such data centers with high availability allowing to significantly reduce the costs of their construction and operation, thereby, increasing the commercial return from one unit of area. The report provides analysis of key technologies and approaches which allow to implement such opportunities today.

 

 

Detailed results of the research are presented in the full version of the report:

 «DATA CENTER INDUSTRY IN RUSSIA: ANALYSIS OF COMMERCIAL AND INVESTMENT PROSPECTS»

 

 

Contents

 

1. Goals and objectives of the study

 

2. Results, methodology, sources

 

3. Analysis of relationships in the data center industry

3.1. Classification of data centers

3.1.1. By technical characteristics of the engineering and ICT systems

3.1.2. By patterns of use of data centers (commercial, corporate) and business models of their owners/operators

3.1.3. By provided services

3.1.3.1. Traditional data center services: rental of racks, servers, hosting

3.1.3.1. Cloud IT services (IaaS, PaaS, SaaS)

3.1.3.2. Cloud non-IT services (online services, BPaaS, IoT/IoS)

3.2. Analysis of the relationships between different types of data centers

 

4. Commercial data centers in Russia, the 2014 results and trends

4.1. Market volume

4.1.1. In real terms (useful space and number of racks)

4.1.2. In monetary terms

4.2. Market structure

4.2.1. By types of services and providers

4.2.2. By types of consumers

4.2.3. By geography of providers and consumers

4.3. Main trends in the development of commercial data centers until 2018

4.3.1. Transformation of business models

4.3.2. Technological transformation

4.4. Analysis of impact of changes in legislation on the market

 

5. Industry of corporate data centers in Russia, 2014 results and trends

5.1. Size of the industry

5.1.1. In real terms (useful space)

5.1.2. In monetary terms

5.2. Structure of the industry

5.2.1. Sectoral structure

5.2.1. Geographical structure

5.3. Development of the industry of corporate data centers until 2018 and later

 

6. Evaluation of the investment prospects in the development of data centers in Russia for the period till 2018 and later

 

 

List of figures:

Fig. 1. Classification of data centers according to their level of availability, Tier

Fig. 2. Average value of PUE in the global data center industry, Uptime Institute

Fig. 3. "Useful load" of a traditional data center

Fig. 4. "Useful load" of an online data center/cloud provider

Fig. 5. Differences between the Internet of services concept from the traditional approach to the provision of services and production of goods

Fig. 6. Data center industry in Russia: players and their relationship

Fig. 7. Components of the Russian data center industry, by useful space, 2015

Fig. 8. Components of the Russian data center industry considering server rooms, by useful space, 2015

Fig. 9. Distribution of "useful load" (storage, servers) by types of sites in the world data center industry

Fig. 10. Total useful space of commercial DPCs in Russia, billion RUB

Fig. 11. Total space of commercial data centers in Russia (involved and vacant) for traditional services*, billion RUB.

Fig. 12. Total vacant space of commercial DPCs in Russia, billion RUB

Fig. 13. Total number of rented racks (colo and dedicated), thousand pieces

Fig. 14. Total annual turnover by all types of IT services offered in data centers, billion RUB

Fig. 15. Volume, structure and dynamics of the Russian IT market in comparable prices

Fig. 16. Market structure by types of IT services offered in commercial data centers, billion RUB

Fig. 17. Market structure for cloud IT services offered in commercial data centers, billion RUB

Fig. 18. Client demand structure for colocation, in real terms

Fig. 19. Proportion of area of Moscow commercial data centers

Fig. 20. Typical large logistics center (location, use of construction technology)

Fig. 21. Structure of consumption of new quality warehouse space

Fig. 22. Data center Google: planar location, the enclosing structure is a metal frame and lightweight sandwich panels

Fig. 23. Neural network of data center intelligent control

Fig. 24. Accuracy of prediction for PUE mega data center Google by the predictive optimization control system based on neural networks

Fig. 25. Utilization of computing resources of Google data centers, 2013

Fig. 26. Utilization of the backbone channels in Google data centers, 2013

Fig. 27. Virtualization and convergence of "useful load" of data centers

Fig. 28. Major fiber-optic transmission lines, used in Russia for international exchange of IP traffic

Fig. 29. SDN global network, unifying Google data centers

Fig. 30. Networking equipment "white box" used in the global SDN network

Fig. 31. Test environment of the CORONET project, which became the basis of AT&T NetBond

Fig. 32. 3WHS - the basic protocol of the CORONET project

Fig. 33. AT&T NetBond service

Fig. 34. Global association of research-based SDN networks GENI

Fig. 35. Additional service level required for end-to-end QoS withstand of the applied services in the federated SDN-based networks

Fig. 36. Experiment on automatic formation of optical SDN channel in networks of various Telecom operators

Fig. 37. Experiment on automatic chaining of several SDX

Fig. 38. Experiment on creating the global SDX Federation

Fig. 39. Comprehensiveness of the approach of AT&T to move to the cloud model

Fig. 40. Differences between traditional and cloud models of operators of telecommunication and IT infrastructure

Fig. 41. Basic for Frameworx SOA architecture that implements the interaction of functional components of OSS/BSS through an enterprise service bus (ESB)

Fig. 42. Space used for hosting enterprise server- and storage equipment in Russia, excluding cloud/online service providers

Fig. 43. Space used for hosting cloud/online service providers in Russia

Fig. 44. Volume and mapping the dynamics of online commerce and online payments in Russia, billion RUB

Fig. 45. Sectoral distribution of private useful space of enterprise data centers

Fig. 46. Sectoral distribution of useful space of enterprise data centers, considering leased areas in commercial data centers

Fig. 47. Industry ratios of demand for useful space in data centers

Fig. 48. Industry ratios of demand for server and storage hardware

Fig. 49. Sectoral structure of Russia's GDP in 2014

Fig. 50. Sectoral structure of consumption of server and storage hardware, 2014

Fig. 51. Geographical distribution of business areas of high quality (grades A and B) in Russia, 2014

Fig. 52. Change in the degree of influence of various external factors on the architecture of enterprises and organizations, assessment of general directors

Fig. 53. CEO's evaluation of the strategic impact of the company's management, its customers and partners

Fig. 54. Evaluation of banking transactions in a traditional in-person and online channels

Fig. 55. DBMS and application servers of "heavy" ERP on a cluster of 2 high-end RISC servers and SAN storage area network

Fig. 56. Horizontally-scalable cloud-based DBMS: any servers and storage

Fig. 57. Quantitative evaluation of the effect of virtualisation of workplaces on the growth of need for computing power of data centers and disk space

 

 

This information letter is prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material.

 

 

 

According to J'son & Partners Consulting, the Russian data center industry, including commercial and corporate venues for computer equipment with total area over 500 thousand square meters, has significant growth potential that surpasses the current pace of its development, which in its term is almost 20 times higher than the growth of the Russian IT-market in comparable prices in 2012-2014.