Leaseweb, one of the world’s largest cloud hosting brands with more than 80,000 physical servers under management operating 19 data centers at strategic locations across Europe, Asia, and North America, is currently seeing a change in the kind of orders they receive. While there is still a growing demand for cloud hosting solutions delivered by Leaseweb, the hosting provider also notices an increased demand for dedicated servers.
The likely reason for this trend towards a growing use of dedicated servers, a stated in a recent blog post by Eltjo Hofstee, Managing Director at LeaseWeb UK, is that more and more highly specialized tech companies, most of them active in the SaaS, MarTech/FinTech or gaming industries, would like to have more control over their infrastructure, cost, and performance.
Low Latency, CPU Clock Frequency
In his blog post, Mr. Hofstee explains that cloud will be the preferred solution for users who have many peaks in their load and don’t want to spend too much time on the maintenance of the environment. This would be the case for at least 90% of the IT load worldwide. For companies with demanding applications – in market segments such as SaaS, MarTech/FinTech and online gaming – looking for the lowest latencies while trying to squeeze out the maximum from their CPUs, the use of cloud might raise the IT infrastructure bill to unacceptable levels while it may not even lead to achieving target performance levels.
For this reason, Leaseweb is now seeing a growing demand for dedicated servers, with high specifications or very customized solutions. Although this would still be a small amount of the requests the company receives, it would be starting to become a trend. Read the full blog post by Eltjo Hofstee here.
The market trend observed follows the news that Leaseweb USA acquired Northern Virginia-based ServInt, a provider of managed hosting services for cloud IT operations that was founded in 1995. The acquisition would support Leaseweb in its ambition to increase their footprint and customer base in the United States, as well as adding deep expertise in the growing third-party managed services market.