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Rising Cloud adoption rate drives datacenter industry growth

Rising Cloud adoption rate drives datacenter industry growth

The year 2017 seem to be extremely promising for the datacenter Industry, as it has been witnessing a rising demand for IT infrastructure management outside the on-premise ecosystem and varying consumer demands with the cloud trend.

The booming cloud opportunity and accelerated cloud adoption rates require more datacenter space and capacity. And at this stage, when companies are experimenting with new products and business models, the need for a flexible infrastructure is imperative.

Companies look for better opportunities resulting in mergers and acquisitions (M&A).

By combining efforts, companies can explore more opportunities and ways to deliver better services to the end customer.

The recent partnership announcement between Tata Communications and Alibaba Cloud is the best example of how companies are synergizing efforts.

Alibaba Cloud is the leading cloud computing arm of Chinese e-commerce giant – Alibaba Group. After getting into a partnership with Tata Communications, the company also announced its decision to open two new datacenters in Mumbai, India and Jakarta, Indonesia. The company plans to make the DC operational by the end of 31st March, 2018.

Simon Hu, Senior VP, Alibaba Group and President, Alibaba Cloud, said,” Establishing datacenters in India and Indonesia will further strengthen our position in the region and across the globe.”

Alibaba Cloud has 14 international Datacenters in operation, and these two new datacenters will provide a comprehensive set of services, allowing businesses to manage their IT infrastructure with Alibaba Cloud and run mission-critical applications on it.

Companies are expanding the cloud business and scale. Leading cloud player IBM also acquired Verizon’s Private cloud and hosting business, earlier in May 2017 with an objective to improve its cloud service portfolio.

Such Mergers & Acquisitions will strengthen and shape the future of datacenter industry and bring more capacity to them.

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