IDC Says 2016 will be the year of Quality of Service for Thailand's Datacenter Market

Tuesday 02 February 2016 12:48
According to IDC Thailand, intense competition in the country's datacenter market will make service providers compete on quality of service, after a brief focus on price. Quality of Service (QoS) metrics such as redundancy, availability and disaster risk mitigation will be the winning formula that a growing number of datacenter players will succeed -- or fail on.

In IDC's Thailand Datacenter Study conducted in 4Q2015, IDC Thailand points to the strong momentum of datacenter and datacenter businesses in Thailand. For example, IDC projects that by the end of 2017, datacenter space will have grown by over 180%, compared to that of 2015. This trend is on the back of major capacity-building by several local and regional players that took advantage of several investment policies by the government such as tax privileges and preferential electricity rates. "However, the growth in demand will lag that of supply. As a result of this disparity, datacenter operators will have to adjust the operation and services to stay relevant in the market," remarks Tuang Cheevatadavirut, Senior Market Analyst, IDC Thailand.

IDC: Thailand Datacenter Study, 4Q2015

Even though new market entrants will cater mostly to the premium customer segment, the excess supply will undeniably generate intense competition for customers regardless of size, industry, and market focus.

Mr. Tuang continues, "Existing operators will initially compete on price but will realize quickly as the enterprises are willing to pay premium for datacenter services that drive business growth through systems of engagement, insight, and action rather than maintain existing systems of record. However, the local operators will essentially need to compete with a new standard for quality, security and innovation set by aggressive international players in order to differentiate their services."

IDC observes that security services will mature to align with the requirements of large enterprises who are keen to maintain high availability and resiliency of their infrastructure. The hybrid cloud model will continue to proliferate as it allows shift to an automated, policy-based, services-oriented approach to IT delivery.

Furthermore, IDC predicts that 40% of businesses will confront facilities mismatches as the existing facilities are not suitable for 3rd Platform environment and there will be a 15% shift of IT budget away from traditional in-house IT delivery as they use more third-party service providers to fill cloud-related skills gaps by 2017. As a result, the quick development of third-party datacenters in Thailand is welcome as local enterprises will be the immediate beneficiaries of the 3rd Platform of IT. The datacenter is a fundamental technology underlying cloud, one of 4 pillars constituting the 3rd platform, allowing enterprises to digitally transform organizations and the way they engage with the customer, produce and deliver goods and services.

For more information about the research or to purchase this data, please contact Kamolporn Poya at +662 645 2370 ext. 518 or [email protected]. To set up an interview with Tuang Cheevatadavirut, please contact Sasithorn Sae-iao at +6681 921 5253 or [email protected].