Datacenter Global Markets Overview – 2010 Datacenter

INTERNET DATACENTER GLOBAL MARKETS OVERVIEW – 2010 DATACENTER

REPORT BY JEFF PASCHKE

JANUARY 2010

TITLE Internet Datacenter Global Markets Overview – 2010

ANALYST Jeff Paschke, Senior Analyst, Datacenters RELEASE DATE January 2010 LENGTH 84 pages

ABOUT THIS REPORT

The Internet Datacenter Global Markets Overview 2010 report provides the overall size, scope and growth of the Internet datacenter market globally. The report segments the global market into regions including North America; Europe, the Middle East and Africa (EMEA); Asia-Pacific and Latin America. It spotlights various prominent global Internet datacenter providers and provides a market outlook for each.

The intended audience for this report includes:

• Colocation and wholesale datacenter providers assessing market share and market positions.

• Hosting providers considering datacenter leasing decisions and expanding globally.

• Financial professionals considering investments in datacenter properties and companies.

• Real estate and planning professionals interested in a global IDC market analysis and provider-by-provider analysis of the multi-tenant datacenter space.

In this report, ‘Internet datacenters’ are considered multi-customer colocation and hosting facilities. Single-user enterprise datacenters and single-tenant datacenters are specifically excluded from this analysis.

This is the second in a planned series of Internet Datacenter Market Overview reports. Tier1 Research intends to publish two Internet Datacenter Market Overview reports annually – one focusing on North America and a second focusing on global Internet datacenter markets and providers.

1-Net Singapore COLT Telecom

365 Main CoreSite

3i Credit Suisse

Advanced Info Services Cybernest

AIMS Asia Group CyrusOne

Aldersgate Investments DataSpace Partners

American Internet Services Digital Realty Trust

Ascendas Real Estate Investment Trust (A-REIT) Diveo Broadband Networks

AT&T DuPont Fabros

Baker Capital Equinix

Bear Stearns e-shelter

Bharti Airtel Exodus Communications

BSNL Fibernet

BT First Boston

Cable & Wireless Fujitsu

Capital-C Ventures Global Crossing

Cervalis Global Switch

China Telecom Globe Telecom

China Unicom Globix

Cincinnati Bell Goldman Sachs

Cobepa Highbridge Business Park

ColoSpace Hurricane Electric

2 INTERNET DATACENTER GLOBAL MARKETS OVERVIEW – 2010 © 2010 THE 451 GROUP, LLC, TIER1 RESEARCH, LLC, AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED. Tier1Research Better perspective from the top in independent tech research

COMPANIES INCLUDED IN THIS REPORT iAdvantage Peak 10

Impsat Peer 1

Internap Pihana Pacific

Internet Villages International Pinder Fry & Benjamin (PFB)

Interoute Primus

Interxion Q9 Networks i-STT Quality Technology Services

IXEurope Qwest

KDDI RagingWire

KT Redbus Interhouse

Latisys Reliance Communications

Level 3 Communications Russia Partners

Morgan Stanley Dean Witter Sabey

Nautic Partners Savvis

NaviSite Sentinel Data Centers

Neotel Sentrum

Net2ez Sify

NTT Siguler Guff & Company

NTT Communications Singapore Telecommunications (SingTel)

Oak Hill Sun Hung Kai Properties (SHKP)

Optus SUNeVision

PCCW SunGard

Swisscom

Switch and Data

Tata Communications

Tata Group

TelecityGroup (Telecity)

Telefónica

Telehouse

TeliaSonera

Telkom SA

Telkomsel

TelMex

Telstra

Telvent

Telx

Temasek Holdings

Teraco Data Environments

Terremark

Verizon Business

ViaWest

Virtu

Vodacom

Warid Telecom

XO Communications

4 INTERNET DATACENTER GLOBAL MARKETS OVERVIEW – 2010 © 2010 THE 451 GROUP, LLC, TIER1 RESEARCH, LLC, AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED. Tier1Research Better perspective from the top in independent tech research TABLE OF CONTENTS

INTRODUCTION AND METHODOLOGY 1 FIGURE 1: Confidence Levels 2 FIGURE 2: Currency Exchange Rate – Source Currency to USD 3 FIGURE 3: Currency Exchange Rate - USD to Target Currency 4

INTERNET DATACENTER TAXONOMY 6 INTERNET DATACENTERS 6 COLOCATION ...... 6 WHOLESALE DATACENTER ...... 7 INTERCONNECTION ...... 7 MANAGED HOSTING 7 GLOBAL INTERNET DATACENTER PROVIDERS ...... 8 FIGURE 4: Global Internet Datacenter Provider Services Mix and Geographic Presence 9

GLOBAL IDC MARKET 12 OVERVIEW AND LEADERBOARD ...... 12 FIGURE 5: Top 14 Global IDC Markets 12 FIGURE 6: Global IDC Leaderboard 13 IDC REVENUE AND TREND ANALYSIS ...... 14 FIGURE 7: Global IDC Revenue 14 FIGURE 8: 2010 Global IDC Revenue by Region 15

NORTH AMERICAN IDC MARKET 16 OVERVIEW AND LEADERBOARD ...... 16 FIGURE 9: North American IDC Leaderboard 16 IDC REVENUE AND TREND ANALYSIS ...... 17 FIGURE 10: North American IDC Revenue ...... 17

EMEA IDC MARKET 18 OVERVIEW AND LEADERBOARD ...... 18 FIGURE 11: EMEA IDC Leaderboard ...... 18 IDC REVENUE AND TREND ANALYSIS ...... 19 FIGURE 12: EMEA IDC Revenue 19

TIER1 RESEARCH: DATACENTER 5 © 2010 THE 451 GROUP, LLC, TIER1 RESEARCH, LLC, AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED. ASIA-PACIFIC IDC MARKET 20 OVERVIEW AND LEADERBOARD ...... 20 FIGURE 13: Asia-Pacific IDC Leaderboard ...... 20 IDC REVENUE AND TREND ANALYSIS ...... 21 FIGURE 14: Asia-Pacific IDC Revenue 21

LATIN AMERICA IDC MARKET 22 OVERVIEW 22 IDC REVENUE AND TREND ANALYSIS ...... 23 FIGURE 15: Latin America IDC Revenue 23

GLOBAL IDC INDUSTRY TRENDS 24 TIGHTENING DATACENTER SUPPLY 24 LENDING STABILIZATION ...... 26 FIGURE 16: Datacenter Supplier New Debt 26 MARKET OPPORTUNITIES: THE FLEDGLING AND EMERGING DATACENTER MARKETS ...... 27 FIGURE 17: Datacenter Market Maturity for 25 Largest Countries . . . . .29

DATACENTER PROVIDER PROFILES: PUBLIC COMPANIES 31 AT&T ...... 31 FIGURE 18: AT&T – Global IDC Footprint ...... 32 FIGURE 19: AT&T – Global IDC Pipeline 33 COLT TELECOM 34 FIGURE 20: COLT Telecom – Global IDC Footprint 35 EQUINIX ...... 37 FIGURE 21: Equinix – North America IDC Footprint ...... 39 FIGURE 22: Equinix – Global IDC Pipeline 40 FIGURE 23: Equinix – Post Switch and Data Acquisition Financial Projections 40 GLOBAL CROSSING ...... 42 FIGURE 24: Global Crossing – Global IDC Footprint 44 FIGURE 25: Global Crossing – Global IDC Pipeline ...... 45

6 INTERNET DATACENTER GLOBAL MARKETS OVERVIEW – 2010 © 2010 THE 451 GROUP, LLC, TIER1 RESEARCH, LLC, AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED. Tier1Research Better perspective from the top in independent tech research

IADVANTAGE ...... 46 FIGURE 26: iAdvantage – Global IDC Footprint 47 FIGURE 27: iAdvantage – Global IDC Pipeline 48 KDDI 49 FIGURE 28: KDDI – Global IDC Footprint 50 FIGURE 29: KDDI – Global IDC Pipeline 51 NTT COMMUNICATIONS ...... 52 FIGURE 30: NTT – Global IDC Footprint 53 FIGURE 31: NTT – Global IDC Pipeline 54 SINGAPORE TELECOMMUNICATIONS ...... 56 FIGURE 32: Singapore Telecommunications – Global IDC Footprint 58 FIGURE 33: Singapore Telecommunications – Global IDC Pipeline 59 TATA COMMUNICATIONS 61 FIGURE 34: Tata Communications – Global IDC Footprint 63 FIGURE 35: Tata Communications – Global IDC Pipeline 64 TELECITYGROUP ...... 65 FIGURE 36: TelecityGroup – Global IDC Footprint 67 FIGURE 37: TelecityGroup – Global IDC Pipeline 68 TELKOM SA 69 FIGURE 38: Telkom SA – Global IDC Footprint 71

DATACENTER PROVIDERS: PRIVATE COMPANIES 73 E-SHELTER ...... 73 FIGURE 39: e-shelter – Global IDC Footprint 74 FIGURE 40: e-shelter – Global IDC Pipeline 75 GLOBAL SWITCH 77 FIGURE 41: Global Switch – Global IDC Footprint 78 FIGURE 42: Global Switch – Global IDC Pipeline 79 INTERXION ...... 80 FIGURE 43: Interxion – Global IDC Footprint 82 FIGURE 44: Interxion – Global IDC Pipeline 83

TIER1 RESEARCH: DATACENTER 7 © 2010 THE 451 GROUP, LLC, TIER1 RESEARCH, LLC, AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED. ABOUT TIER1 RESEARCH Tier1 Research covers consumer, enterprise and carrier IT services, particularly hosting, colocation, content delivery, Internet services, software-as-a-service and enterprise services. Tier1’s focus is on the movement of services to the Internet — what they are, how they are delivered and where they are going.

ABOUT THE 451 GROUP The 451 Group is a technology analyst company. We publish market analysis focused on innovation in enterprise IT, and support our clients through a range of syndicated research and advisory services. Clients of the company — at vendor, investor, service-provider and end-user organizations — rely on 451 insights to do business better.

© 2010 The 451 Group, Tier1 Research and/or its Affiliates. All Rights Reserved. Reproduc- tion and distribution of this publication, in whole or in part, in any form without prior written permission is forbidden. The terms of use regarding distribution, both internally and externally, shall be governed by the terms laid out in your Service Agreement with The 451 Group, Tier1 Research and/or its Affiliates. The information contained herein has been obtained from sources believed to be reliable. The 451 Group and Tier1 Research disclaim all warranties as to the accu- racy, completeness or adequacy of such information. Although The 451 Group and Tier1 Research may discuss legal issues related to the information technology business, The 451 Group and Tier1 Research do not provide legal advice or services and their research should not be construed or used as such. The 451 Group and Tier1 Research shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.

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