Cloud providers and hyperscalers continue to build new data centers. The public cloud continues to grow while enterprise data centers continue to face tightening budgets. Given that environment, you would expect that Amazon Web Services, Apple, Microsoft and other hyperscalers of the world would be the leading buyers of real estate for data centers. But this is not always necessarily true. According to CBRE, in the first half of 2017 hyperscalers were busy digesting what they bought and leased in 2016. In that time period, of the 12 large deals tracked by CBRE, only five were purchases by companies planning to own or operate a data center. The remaining purchases were speculation by investors hoping to eventually sell to a hyperscaler or co-location provider.
A recent report published by Schneider Electric and 451 Research shows that public cloud will continue to grow at the expense of enterprises run data centers. It also shows that many more companies are migrating workloads from co-location to public clouds instead of in the opposite direction – 62 percent vs 41 percent.
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