On-Prem Data Centers Retain A Shrinking Foothold As Cloud's Shadow Looms
CIODIVE, Friday, July 14,2023
While capacity steadily migrates to massive CSPs, more than one-third of worldwide data and compute remains on-prem.
On-premise data centers account for 40% of global compute capacity, only slightly more than the 37% owned by hyperscaler cloud providers, according to a Synergy Research Group report published Wednesday. The remaining 23% of capacity rests offsite in colocation facilities and leased data centers, the report said.
The total capacity of all data centers is expected to rise steadily over the next five years, driven primarily by a doubling in hyperscaler infrastructure, according to the firm's analysis of 19 major cloud and internet service firms, including the largest operators in SaaS, IaaS, PaaS, search, social networking, e-commerce and gaming.