Japan Carriers Internet Datacenter 2006-2010 Forecast and 2005 Analysis

This IDC study (which is a translation of the Japanese report #J6040104) analyzes the current situation of Internet datacenters provided by communication carriers in Japan, characteristics and future directions through interviews with leading carriers. The study also analyzes the leading service categories of the market and forecasts the size of the iDC market from 2005 to 2010. At the same time, the study analyzes the position of carriers, their share and characteristics in comparison to the overall iDC market in Japan, which includes IT vendors and SI vendors.

"The demand for Internet datacenters provided by communication carriers remained steady in 2005 and is increasing in 2006. Carriers are introducing BC (business continuity) and DR (disaster recovery) services, for which the demand is expected to increase, and their moves are attracting attention of user companies. The datacenter space is becoming scarce in the Metropolitan area and providers are increasing floor space at a certain rate. On the other hand, carriers may face tough competition against IT vendors and SI vendors in the collocation and IT service markets. For carriers to win the competition against providers from other industries and to increase profit, carriers will have to provide services with high added values based on their strength as carriers and to come up with alliance strategies that allow them to exert control when establishing cooperation with other parties," observes Akiko Kawakami, market analyst, Communications, IDC Japan.