Cloud Takes Center Stage at German Firms, Data Centers

As enterprises embrace digitalization, cloud computing will soon grow to half the country’s data center capacity, ISG Provider Lens™ report says

FRANKFURT, Germany–(BUSINESS WIRE)–$III #Colocation–Enterprise demand for cloud computing in Germany is growing so fast that it will represent more than half of the country’s data center capacity by 2025 – up from about a third today – according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services & Solutions report for Germany finds the increasing demand for cloud services is being driven by enterprises investing in digitalization, especially to improve their resilience and agility. This trend is part of a steadily growing IT and business services market in Europe, including a 24 percent year-over-year increase in managed services in the first quarter of 2022.

“German companies’ growing use of managed services, especially IT and business process outsourcing, is part of a boom happening across much of Western Europe,” said Alexandra Classen, EMEA partner at ISG. “The biggest demand is for infrastructure services and application development and maintenance.”

The need for colocation data centers in Germany is rising as both enterprises and managed hosting providers increasingly rely on them, the report says. One reason is that more companies are beginning to need low-latency networks with a maximum latency of 35 milliseconds, which colocation facilities are better equipped to provide.

German companies’ mass migration to the cloud is reflected in the growing volume of traffic through the country’s network nodes and the increasing size of new data centers, ISG says. The throughput of the DE-CIX node in Frankfurt, one of the world’s largest, increased from 9.1Tbit/s in 2020 to 10Tbit/s in 2021. Nodes in Hamburg and Munich saw similar increases. New data centers need to be big enough to consume 5 megawatts or more to be profitable, and there are now 90 of these facilities in Germany, supplying half the country’s data center capacity.

Recognizing the huge energy requirements of data centers, which consume about 3 percent of Germany’s electricity, operators are introducing modern passive cooling systems and increasing the energy efficiency of data center computing, the report says. The average Power Usage Effectiveness (PUE) of a new data center was 1.63 in 2020 but has since fallen to 1.3 and below — with 1 being the ideal score.

The report also explores other trends in private and hybrid cloud use in Germany and beyond, including the growing importance of multi-cloud and multi-platform computing landscapes and the challenges of compliance.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services & Solutions report for Germany evaluates the capabilities of 100 providers across six quadrants: Managed Services for Large Accounts, Managed Services for Midmarket, Managed Hosting for Large Accounts, Managed Hosting for Midmarket, Colocation Services for Large Accounts and Colocation Services for Midmarket.

The report names PlusServer as a Leader in three quadrants. It names Arvato Systems, Atos, Axians, CANCOM, Claranet, DATAGROUP, Deutsche Telekom (TDG), Kyndryl, q.beyond and T-Systems as Leaders in two quadrants each. The report names Accenture, All for One Group, Capgemini, Computacenter, CyrusOne, Datacenter One, DXC Technology, Equinix, Fujitsu, Infosys, Interxion (Digital Realty), ITENOS, KAMP, maincubes, Materna, myLoc (WIIT), noris network, NTT DATA, NTT Global Data Centers, Pfalzkom, Rackspace Technology, STACKIT, Telehouse and TelemaxX as Leaders in one quadrant each.

In addition, akquinet and AtlasEdge are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

Customized versions of the report are available from Adacor, CANCOM, ITENOS, KAMP, noris network, STACKIT and TelemaxX.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services & Solutions report for Germany is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Contacts

Press Contacts:

Philipp Jaensch, ISG

+49 151 730 365 76

[email protected]

Matthias Longo, Palmer Hargreaves for ISG

+49 152 341 464 63

[email protected]