Carrier-neutral Colocation Market In Central & Eastern Europe Still Immature

Detailed analysis of four Central & Eastern Europe (CEE) markets – Czech Republic, Hungary, Poland and Romania – show that carrier-neutral colocation in this region is still relatively immature compared to the Western European data center market, according to the first edition of BroadGroup’s Data Centres Central & Eastern Europe report.

Third party data center markets in these four countries have some way to catch up with data center markets in Western Europe. Even in more developed ICT markets such as in Poland and the Czech Republic, the report finds that there is still some way to go in creating a dynamic carrier neutral colocation market.

Broad Group research

The report notes ‘pockets of supplier excellence’ and some impressive new Tier III builds. These developments and the growth of cloud hosting services in the region – together with the concomitant need for data protection in secure local facilities – augurs well for

colocation-poland
The recent acquisition of colocation providers in Poland and Bulgaria by TelecityGroup would herald change in terms of market dynamics.

future growth.  However, the research found that business user mindsets towards outsourcing to third party suppliers needed to change on a wider basis for CEE colocation markets to truly take off.

Research for the report also suggests that the CEE data center market is currently experiencing some changes. “The data center market in Central and Eastern Europe has clearly reached a turning point in terms of market development and business opportunity,” said Marion Howard-Healy, report author and senior consultant at BroadGroup Consulting. “The recent moves by leading players, TelecityGroup and Deutsche Telekom, heralds change in terms of market dynamics both in data centers and networking”.

BroadGroup’s Central & Eastern Europe Data Centres & Cloud Report 2013 is aimed at anyone involved, or planning to engage, in the CEE data center sector from operators to telcos to vendors, investors, government agencies and hosting services providers.