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Datacentres – A Market Assessment with a View to Market Entry and Sustainable Operation

Problem

With the continuing meteoric growth of the Information Technology sector, driven in good measure by the explosion of hardware and applications innovation, IT datacentres now consume 2-3% of global electricity production.

Consequently, for a new entrant to the datacentre market the challenge arises how and where to enter the market – and critically how to address ongoing issues of energy sustainability.

Solution

To address the challenge a thorough market audit was required to ascertain the state of and trends in; competitor activity, current web architecture, its projected evolution, and the implications of growth demands on the industry, as well as the market’s current, proposed and likely future regulatory development.

Further, the audit required an assessment of likely hardware, software and energy supply-chain development issues - in particular with regard to their capacity to optimise energy utilisation from sustainable sources whilst taking into consideration the market’s needs for service continuity and security.

Work Undertaken

The information generated through Blake’s audit was used to assess the global datacentre market with regard to market structure, segmentation, cost structure and anticipated future developments.

From the aforesaid, market penetration strategies were elucidated and their commercial merits, demerits and risks evaluated, and appropriate strategic approaches recommended to the client.

Outcome

Through its market evaluation, Blake was able to advise its client on the most appropriate business model and strategies to adopt, guidance on pricing models, and where best to locate its operations with due regard to the client sustainably serving its clientele with optimum market serve, lowest cost, and best business growth potential.

Benefits

Utilising Blake’s input the client was able to independently confirm and validate its market view and greatly expand its perspective on ongoing market developments.  Further, they were able to more clearly visualise potential commercial and regulatory pit-falls thereby building in risk minimisation strategies into future expansion plans.

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