Emergence of the Internet of Things (IoT), increased spending on cloud data center, need for colocation and managed service data centers, and growing usage of big data analytics are some of the key factors driving the global datacenter deployment spending market.

The report observes that several cloud service providers are constructing cloud data centers in order to offer cloud-based services to end-users of all kind. Small and medium enterprises are inclining towards cloud data centers as it offers striking benefits such as reliability, scalability, and overall reduction in cost of repeated processes.

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Though it is difficult to gauge exactly how much is spent by companies on datacenters as they simply lump them in with other capital expenditures, cloud service providers confess that datacenter spend accounts for the biggest portion of their capital expenditure. In the recent times, major cloud providers have started shifting from third party datacenter facilities to leased processes.

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For example, Microsoft and IBM have collaborated with 21Vianet, a Chinese datacenter provider, to cater to Asia Pacific market. A number of businesses are now using consumer based applications that are generating large amounts of structured and unstructured data.