Silicon Valley Data Center Market Poised for Growth

An illustration of what the Vantage Data Centers campus in Santa Clara will look like upon completion. The company is building two new data centers on the campus. (Image: Vantage Data Centers)

We continue our series of stories on the leading geographic markets for data center space. Data Center Frontier is partnering with DatacenterHawk to provide in-depth market reports on each city we profile.

Silicon Valley is America’s leading engine of business innovation. It is also one of largest and most important data center markets in the U.S., providing space to deploy new hardware and services from the Valley’s marquee technology companies, as well as a legion of fast-moving startups.

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"Today, we are announcing Microsoft Cloud App Security, based on the Adallom technology, will become generally available in April 2016," said Microsoft Chief Information Security Officer Bret Arsenault, in a Feb. 25 announcement. "Microsoft Cloud App Security brings the same level of visibility and control that IT departments have in their on-premises network to their SaaS applications, including apps like Box, Salesforce, ServiceNow, Ariba, and of course, Office 365."

Cloud spending up 23 per cent year-on-year

A report by IDC has revealed that cloud revenues are up 23 per cent year-on-year, with the majority being generated by infrastructure rather than software.

The results are based on figures from Q3 2015, when $7.6 billion (£5.33 billion) worth of revenues were reported by manufacturers of equipment such as servers, storage and switches.

Cloud infrastructure now accounts for 33.8 per cent of revenues in the entire cloud sector, up from 27.8 per cent in Q3 2014, with public cloud infrastructure leading the way, growing by 25 per cent compared to private cloud, which expanded 18.8 per cent.

“IDC continues to see healthy double-digit growth in cloud IT deployments in the market with an increasing preference for public cloud infrastructure,” said Kuba Stolarski, research director for computing hardware and platforms at IDC.

Non-cloud-related infrastructure revenues reduced by 3.2 per cent and, although this isn't as substantial a loss as cloud's gain, it demonstrates the migration from on-premises to cloud-based systems.

“Customers are modernising their infrastructures, having a progressively larger number of viable options for cloud deployments either on or off premises," Stolarski added.

HPE, Dell and Cisco all showed big gains over the quarter, with HPE snatching 15.7 per cent of the share (its revenues rose 27 per cent) and Cisco and Dell coming joint second in the league table.

Read More: http://www.cloudpro.co.uk/leadership/5741/cloud-spending-up-23-per-cent-year-on-year