Internet Infrastructure 2020-2025 Update

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This report provides an update to our total infrastructure services market share projection for the period 2020-25. Our data was updated in 2H20 to account for the changes brought on by the COVID-19 pandemic. The changes to our projections were relatively modest as all indications are that the sector has proved to be resilient even in the face of widespread difficulties. The sector has benefited from the shift of various aspects of life and business to the online medium, while taking advantage of counter-cyclical dynamics that have created significant tailwinds. There is historical precedent for such counter-cyclical growth. The 2008-09 financial crisis caused a global economic slowdown. But the infrastructure services sector was not adversely impacted and continued to push forward steadily. It is obviously not a perfect comparison and the sector has matured a great deal over the last decade. Cloud is no longer a secret and the model is understood by IT decision-markers. But when there is a tightening of belts and initiatives to drive IT efficiency – whether organic or brought on by cataclysmic and unforeseen events – the value proposition of outsourced infrastructure resonates. And with that comes adoption, expansion and uptake in value-add services. Needless to say, this has translated into the underlying numbers. This is a sector that is expected to be worth $203.5b in 2020 and projected to grow at a five-year CAGR of 24.5%.

Executive Summary

Compute infrastructure continues to build out on a global basis as outsourced and remotely managed infrastructure moves inexorably to becoming the default way of doing things. The primary driver of this build out has been hyperscale cloud. Hyperscale is moving into new regions of the world and establishing multiple locations in mature markets. While this shows no signs of slowing down, decentralization is already starting to happen as the edge moves from concept to reality. Compute infrastructure is being built in smaller increments and not just moving into far flung locations, but deploying in different deployment models. All this has increased the importance of connectivity and interconnection platforms, while widening the ecosystem to include new pieces such as wireless. This report looks at the infrastructure build patterns that are taking shape in this rapidly changing landscape. How is hyperscale building around the world? How is compute getting to the edge? What form factors is compute being deployed in and how is all this impacting the build and expansions strategies of data centre operators and infrastructure service providers?