Managed Hosting and Colocation in 2009 and Beyond

• By Tom Millitzer on September 16, 2008

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From the Hosting Summit - Dan Golding packed a lot of future in this presentation. However the one point most people keyed on was the growth of the Data Center and managed hosting industry.

Get this there is a 15% growth demand, and we are talking worldwide, but there is only a 5% supply ramp-up and this is probably through 2012

I think some clarification is in order. This become a real-estate capital tanking problem, yes some explanation.

First 15% demand. This year, next year and several years forward we need 15% more servers, or sq./ft, or power capacity (he thinks this is a trend) than we did last year. Compounding makes this interesting.

Supply ramp up 5%. That means we are building only 5% of our needs be it servers, sq/ft or power capacity.

As we are falling short in some ways – there is a tremendous upside for growth.

Real-estate Capital tanking – You may have noticed the Lehman Bros largest bankruptcy in the US history. Bankers are strange, now all real estate is bad.

Google screwed it up. They build that 500k-sq/ft data center here and there bankers think there is an oversupply.

Obviously someone needs to increase the supply – how about you?

Bottom line – good times could be ahead if you can convince the banker.

Side note: This is just a small snippet of the presentation. 

More about Tom:

NCC - New Commerce Communications

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Tags:  Colocation  managed hosting  Apple  EDS  Google 

Tom Millitzer provides merger and acquisition services to Internet service firms including Web Hosting, Data Centers and similar sectors. In 1994 he founded New Commerce Communications, Inc. (NCC), where he serves as President. During his career he has been involved in almost 200 mergers and acqu... (Read full bio)

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