Can Modular Data Centers Compete with the Cloud?

Derek Schou
by Derek Schou 02 Jun, 2014

Cloud computing may be today's media darling, but it is important to remember that there are other ways of storing massive amounts of information.

One alternative to the Cloud is Modular Data Centers which experts believe are poised for incredible growth over the next four years.

MarketsandMarkets, a market research and consulting firm, has released its latest report detailing the future of the Modular Data Center market. The report breaks down the market into several different categories, analyzes trends and makes predictions.

The research firm predicts that in four years, for example, the Modular data Center market will be worth $40.1 billion with a compound annual growth rate (CAGR) of 37.1 percent in 2018. (By reverse calculating based on the CAGR, the Modular Data Center market is worth $11.35 billion today.)

Modular Data Centers, for those who don't know, are prefabricated data centers that are easily deployable and kept on site anywhere. They house everything (software, storage etc.) that they need to operate within them and just need to be connected when they are dropped off, no construction or assembly required. (They typically look like cargo containers.)

While Modular Data Centers do not get the same press coverage as the Cloud at this time, they provide businesses with an intriguing on-site alternative to the off-site Cloud.