Demand for Colocation Services up in Germany, as Enterprises Seek Help With Complex Data Centers

ISG Provider Lens™ report sees German companies interested in hyperconverged systems and hybrid clouds


FRANKFURT, Aug. 06, 2020 (GLOBE NEWSWIRE) -- Enterprises in Germany are looking to colocation providers to help them manage their data center needs and improve connectivity to their networks, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2020 ISG Provider LensNext-Gen Private/Hybrid Cloud – Data Center Services & Solutions Report for Germany finds demand for colocation services increasing in the country, with enterprises’ own data centers no longer able to keep up with the upgrades and improved connectivity companies need.

The high cost of regulatory compliance and upgrades to existing company-owned data centers is driving the expansion of the colocation market, the report says. Colocation providers also can offer better security and high availability, and can set up networking services on short notice.

“The growth rate in the colocation industry in Germany is gigantic,” said Andrea Spiegelhoff, partner at ISG DACH. “Hardly a month goes by without a new data center announced or opened.”

Colocation providers also can offer enterprises savings on energy costs, even as electricity costs in Germany are among the highest in Europe, the report says. Data center operators are increasingly focused on being more energy efficient.

Large colocation providers also provide space for enterprise data centers to grow, the report notes. While data centers built in the past were in the 3,000- to 4,000-square-meter range, new data centers are often 10,000 square meters or larger.

With the growing demand in colocation services, new providers, including some from outside the country, are entering the German market, the report says.

The report also sees a growing demand for hyperconverged systems among German companies. Enterprises are embracing “cloud-in-a-box” hyperconverged product lines, and providers focused on storage and data management are partnering with providers of network virtualization and other services to offer hyperconverged systems. In addition, IT leaders continue to be concerned about where their applications will be hosted and maintained.

Adoption of hybrid cloud services also is growing in Germany, with enterprises seeing professionally operated hybrid clouds as a combination of the best features of private and public clouds. Hybrid cloud providers can tailor services to customer needs and can offer automated services that help scale systems and avoid duplication of work.

Providers in the cloud and data center markets generally need to offer managed or professional services for infrastructure and applications to be competitive, the report adds. Many providers are now offering automation services, including robotic process automation, to detect anomalies at an early stage, improve incident management and enhance customer experience.

The 2020 ISG Provider LensNext-Gen Private/Hybrid Cloud – Data Center Services & Solutions Report for Germany evaluates the capabilities of 114 providers across seven quadrants: Managed Services for Large Accounts, Managed Services for the Midmarket, Managed Hosting for Large Accounts, Managed Hosting for the Midmarket, Colocation Services, Data Center Security Products and Hyperconverged Systems.

The report names IBM, plusserver and QSC as leaders in three quadrants and Arvato Systems, Atos, Axians, CANCOM, Capgemini, Cisco, Claranet, DATAGROUP, Deutsche Telekom (TDG), Deutsche Telekom (TSI), DXC Technology and NTT as leaders in two quadrants. Named as leaders in one quadrant are *um (Orange), Accenture, All for One Groups, Broadcom/Symantec, Check Point, Computacenter, CyrusOne, Dell EMC, Equinix, Fortinet, Fujitsu, HPE, Interxion, ITENOS, Juniper Networks, Maincubes, Nutanix, Palo Alto Networks, Rackspace Technology, Telehouse, TelemaxX, Trend Micro and VMware.

A customized version of the report is available from Maincubes, TelemaxX and T-Systems

The 2020 ISG Provider LensNext-Gen Private/Hybrid Cloud – Data Center Services & Solutions Report for Germany is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe and Latin America, as well as in the U.S., Germany, the U.K., France, the Nordics, Brazil and Australia/New Zealand, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

The series is a complement to the ISG Provider Lens Archetype reports, which offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

Starting this year, each ISG Provider Lens™ study will include a Global Summary to help enterprise subscribers better understand provider capabilities across all geographic markets covered by that study. All ISG Provider Lens™ reports also will now include an Enterprise Context feature to help executives quickly identify key insights related to their roles and responsibilities.

About ISG 

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit

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