Industry Analysis & Industry Trends
The Data Centres industry has grown steadily over the past five years, underpinned by the increasing prominence of cloud computing. Still in its infancy, cloud computing is driven by the internet and all things internet-enabled. The adoption of a cloud computing model is used to achieve economies of scale, enhance information sharing speed and develop new services. Industry revenue is forecast to increase by an annualised 6.2% in the five years through 2013-14, to reach $475.4 million. This includes forecast growth of 5.0% in 2013-14.
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Industry Report - Industry Investment Chapter
The industry exhibits high levels of capital intensity. For every dollar absorbed by capital, $1.80 is allocated towards labour. In this calculation, depreciation is used as a proxy for capital, while wages are used as a proxy for labour. Advances in ICT technology are increasing the need for computing equipment to provide timely service to commercial clients. One way that participants may look to offset increases in technological expenditure is to lease computer and related equipment instead of directly owning the equipment. By leasing the equipment, participants offset high depreciation expenses that arise due to short technological product life cycles. As more work is outsourced internationally, and becomes more automated, the industry will continue to become more capital intensive... purchase to read more