In 2015, OTT enterprises spent more than $60 billion on data centers
In 2015, the capital expenditure of Internet content providers (ICP) is expected to exceed 60 billion US dollars. Starting from the data center, ICP continued to invest heavily in infrastructure. At present, the capital expenditure of telecom operators is still 4-5 times that of ICP, but OTT and cloud service providers are developing rapidly, which has triggered technical disputes around virtualization and SDN.
The data center boom is not over
Web 2.0/OTT companies (Ovum classifies them as ICP) with the largest network scale, including Google, Apple, Microsoft, Amazon and Facebook. They account for nearly 60% of the network capital expenditure in this market segment. These five companies and many other ICP companies are focusing on expanding their global data center networks.
Ovum's latest forecast says that ICP enterprises will have 6-7% revenue growth and 11% capital expenditure growth in 2015. The preliminary results show that in 2015, ICP enterprises experienced an increase of about 6% in both revenue and capital expenditure. The shortage of capital expenditure is mainly due to Google's reduction of capital expenditure last year - the company's capital expenditure in 2015 was about $1 billion less than that in 2014, and Google carried out a lot of infrastructure construction in 2014, and corporate restructuring also had an impact. Google is expected to see capital expenditure growth in 2016, and Facebook, Apple and several other important ICP enterprises also have capital expenditure growth expectations.
Although Ovum's forecast of ICP enterprises' capital expenditure in 2015 was slightly higher (by US $1-3 billion), the research company still maintained its forecast of ICP revenue and capital expenditure in 2016-2020: ICP revenue will grow at a compound annual growth rate of 6% until 2020, The compound annual growth rate of capital expenditure is 11%. This will drive the capital expenditure of ICP to reach about 110 billion US dollars by 2020, which will increase to nearly 1/3 of the capital expenditure of telecom operators (CSPs)
