This document was revised on 11 March 2010. For more information, see the Corrections page on gartner.com.

While data center outsourcing remains one of the most mature outsourcing service areas, some changes continue to emerge that include delivery variations and alternative/nontraditional delivery models, such as remote management services, infrastructure utilities and cloud offerings. For the purpose of this MarketScope, the emphasis is still on traditional data center outsourcing services. Organizations should use this MarketScope to narrow their searches for a data center service provider that meets their needs, and as a tool to better understand the competitive market. This research includes very large service providers and several midsize providers. New vendors have been added, and a few vendors that appeared in the "MarketScope for Data Center Outsourcing, North America, 2007" have been removed. Overall, the group of service providers included herein provides enough variations for you to find a data center provider that meets your requirements.

This MarketScope was developed using a three-pronged approach:

• We received a presentation from each service provider. Each discussed its data center skills and capabilities against Gartner's evaluation criteria (see the Evaluation Criteria section).
• We asked for and were provided with client references, which we contacted directly to survey their experiences with the service providers.
• We incorporated current information and feedback from Gartner clients via client interactions regarding any issues or problems they had with the service providers.

We analyzed the results of the presentations, the reference surveys and client feedback to rate each of the service providers. In our analysis, we weighted the references and client feedback highly. They were a major influence in the final ratings we gave to the vendors in this MarketScope.

Since this is an update of the "MarketScope for Data Center Outsourcing, North America, 2007," it should be noted that three service providers were acquired, and, therefore, their names have been removed from this MarketScope. VeriCenter was acquired by SunGard Availability Services (and we noted this in the last MarketScope, but both companies were included because the acquisition had just been announced). In 2009, Perot Systems was acquired by Dell, and in 2008, EDS was acquired by HP (see the Vendor Product/Service Analysis section for more information). Also, on 8 February 2010, ACS was acquired by Xerox.

Four new participants have qualified for this MarketScope: Blue Hill Data Services, CompuCom, Fujitsu and HCL Technologies.

Data center outsourcing is one of the most mature markets for IT services. Service providers have refined their skills and developed strong expertise in the management of data center services. "Data center outsourcing" usually refers to the centralized support of computer equipment (such as mainframes and servers) in a secure facility, the underlying network infrastructure, and the processes and organization that support this environment. This generally includes:

• System operations
• Tape operations
• Print operations
• Second-level data center support
• Production control
• Backup and recovery processes
• Technical support (operating systems [OSs], subsystems)
• Performance analysis/capacity planning
• Storage management
• System security/contingency planning
• Asset procurement and third-party management

Gartner defines "data center outsourcing" as "a multiyear or annuity contract/relationship involving the day-to-day management responsibility for operating server/host platforms, including distributed servers and storage. Services include any combination of, or all of, the product support and professional services as they specifically relate to the ongoing management of the computing and storage resources."

Minimally, data center outsourcing contracts always include services encompassed by the computing platform of the operation service segment. Help desk management services are included only to the extent that problem determination and resolution are at the computing hardware level, or at the infrastructure software level or OS software level. Application management services are included only to the extent of the infrastructure software level or OS software level. The service provider or the enterprise client may provide and use information management software and system management tools.

Services may be provided at the client site or off-site. The client, the external service provider (ESP) or a third party may own the IT assets. Contracts may include the transfer of client employees, IT assets and facilities to the ESP.

To qualify for inclusion in this MarketScope, data center outsourcing service providers must have at least $50 million in annual revenue in North America. They must also demonstrate that they provide data center services as a sole-source provider. Partnerships and/or alliances are excluded. To validate the service providers' capabilities, we require a minimum of two client references.

Data center outsourcing services are mature, but they continue to evolve in terms of competencies and needed skill sets as a result of new technology developments. The service providers in this MarketScope have the necessary technical skills and resources to support most client requirements, and they offer high-quality services. They generally have first-class facilities that include the necessary power, electricity, generators, battery backups and security to protect clients' systems.

Acxiom continues to focus on data center services for midtier clients, and has a solid base of data center deals in North America. Its revenue for traditional IT outsourcing was more than $275 million in 2009. It has IT outsourcing data centers in Illinois, Minnesota, Arkansas and Arizona, and in Sutherland and Leeds, England, U.K. These data centers provide outsourcing support for 50,000 MIPS (million instructions per second), 20,000 servers and 6,000TB of disk storage. Over the past year, Acxiom spent $31 million upgrading and improving its data centers to ensure that it continues delivering quality services. Customer references were positive.

Rating: Positive

During this study, ACS was being acquired by Xerox. It was too early in the acquisition process to look at the combined companies, so this study remains focused on ACS. The provider continues to focus on its data center service capabilities and on its flexibility to meet client needs. ACS has nine data center facilities in the U.S. and six international data centers. It supports more than 57,000 MIPS, more than 32,000 servers and nearly 22,000TB of managed storage worldwide. ACS's references provided positive feedback.

Rating: Positive

Atos Origin is a worldwide service provider that garners 55% of its revenue from managed service business. One-quarter of Atos Origin's revenue comes from data center services, with multiple Tier 4 data centers worldwide. In North America, Atos Origin has two data center facilities and supports 466 MIPS servers, 189 Unix servers, 53 Linux servers and 1,100 Windows servers. Its client references were positive.

Rating: Positive

Blue Hill Data Services is a new entry in this MarketScope. It has provided data center services for more than 16 years, but primarily had a regional focus. In 2007, Blue Hill Data Services was acquired by BPO Management Services, which began to expand the business. Blue Hill currently supports 1,744 MIPS, and manages 21 Unix servers, 297 Windows servers, two Linux servers and 40 other OS servers. Furthermore, it differentiates itself by providing dedicated disaster recovery services internally for all supported platforms. References were satisfactory, and we expect Blue Hill's services and capabilities to continue growing in this market.

Rating: Promising

Capgemini maintains a strong presence in Europe, and has continued to expand its scope in North America as a midtier provider of data center services. Capgemini recently secured a new data center in Manassas, Virginia, which can be expanded from 6,000 square feet to more than 60,000 square feet to accommodate new and expanding client needs. In North America, Capgemini currently supports 1,576 MIPS, 1,082 Unix servers, 5,736 Windows servers, 275 Linux servers and 34 other OS servers. Its client references were positive.

Rating: Positive

CGI continues to be an outsourcing leader in Canada while it pursues its focus on growing globally. Despite the down economy, CGI was able to grow its revenue from data center services by 4%. Furthermore, it strove to improve its operational efficiency, and invested in tools and processes to achieve quality. In North America, it has 11 data center facilities, which support 16,008 MIPS, 2,742 Unix servers, 11,857 Windows servers, 939 Linux servers and 92 other OS servers. Its references were very positive, and, with the improvements to data center services, CGI moved to strong positive.

Rating: Strong Positive

CompuCom is a new entry in this MarketScope. It is a longtime leader in end-user computing in North America, and has made progressive moves organically and inorganically to expand its offerings into data center services. In the past year, its data center support revenue grew 28% to $58 million. While CompuCom provides traditional data center services delivered from its site, its primary strategy is to use its Integrated Infrastructure Management (IIM) solutions to support clients onshore, nearshore or offshore. CompuCom currently supports 40,000 Unix servers, 130,000 Windows servers, 20,000 Linux servers and 100 other OS servers. References were satisfactory, but they were remote clients, not traditional services — hence, the Promising rating.

Rating: Promising

CSC is the largest product-independent data center service provider in North America and worldwide. Overall, CSC has more than 28 data center and support facilities in North America. It supports 35,799 MIPS, 11,193 Unix servers, 35,189 Windows servers, 4,687 Linux Servers and 225 other OS servers. CSC's strategy during this volatile economy has been to focus on reducing costs and improving quality for its existing clients. CSC's references were very satisfied with the company's data center offerings.

Rating: Strong Positive

Dell recently purchased Perot Systems, which had a strong U.S. data center outsourcing service business. Hence, our evaluation for this MarketScope was based on the capabilities that Dell acquired from Perot. Furthermore, with its new acquisition, Dell has invested $130 million in data center enhancements and growth since 2007. Dell now manages more than 21 client data centers, in addition to having three premier multiclient data center facilities in the U.S. In these centers, Dell supports more than 4,200 MIPS, 3,420 Unix servers, 24,320 Windows servers, 1,520 Linux servers and 8,400 other OS servers. Feedback from references was still very positive, even after the acquisition.

Rating: Strong Positive

Fujitsu is also a new entry in this MarketScope. It has been a strong provider in Europe, the Middle East and Africa, and in Asia/Pacific, but only recently entered the North American market. Fujitsu's strategy is to have a service-led expansion, particularly around infrastructure services, and to grow these services in North America. Currently, Fujitsu has seven data centers in North America: five in the U.S. and two in Canada. It supports 3,500 MIPS, 474 Unix servers, 2,326 Windows servers, 198 Linux servers and three other OS servers. Feedback from references was positive, which can be attributed to Fujitsu's past experience in other parts of the world.

Rating: Positive

HCL is another new entry in this MarketScope. Its strategy is to grow the business based on a combination of selective acquisitions of facilities and assets from clients, and by leveraging a partner ecosystem. HCL currently has six owned or leased data centers in North America. Within these data centers, it supports 3,740 MIPS, 955 Unix servers, 2,140 Windows servers, 842 Linux servers and 245 other OS servers. References provided positive feedback.

Rating: Positive

HP's acquisition of EDS created the second largest data center service provider in the world. HP's strategy and vision for data center outsourcing are built on a converged infrastructure architecture that matches the supply of IT resources with the demand for business applications. In North America, HP has 38 leveraged data centers. It supports 105,000 MIPS, 19,008 Unix servers, 37,949 Windows servers, 5,360 Linux servers and 1,902 other OS servers. HP's references provided very positive feedback regarding its data center services.

Rating: Strong Positive

IBM Global Services still maintains its position as the largest provider of data center services in the world. IBM has more than 160 data centers in the Americas. Within these data centers, IBM supports 606,846 MIPS, 32,083 Unix servers, 99,855 Windows servers, 5,769 Linux servers and 1,114 other OS servers. During the past year, while many companies have been affected by the economy, IBM has made a special effort to focus on improving customer satisfaction, and on providing consistent delivery domestically. Based on IBM's efforts, the references with which we spoke were very satisfied with the data center services provided.

Rating: Strong Positive

Maintech focuses on providing remote managed data center services, but its primary focus is on client sites. Recently, Maintech began expanding this, and now has two data center facilities, which means it is on the right track toward improving its rating. Through its remote services, Maintech supports 10,750 Unix servers, 21,400 Windows servers and 128,750 Linux servers. References were satisfactory, but due to the limited scope of Maintech's services, we rate it as Promising.

Rating: Promising

Northrop Grumman continues to be a significant player in data center services; however, we were unable to obtain details on the number of data centers and equipment it supports. Regardless, Northrop Grumman has a very strong base in the public sector, and it has concentrated on growing that sector during this economy. References provided positive feedback on its service offerings.

Rating: Positive

Siemens IT Solutions and Services has been steadily growing its data center outsourcing service capabilities in North America. It has five data centers in North America, and supports 200 MIPS, 793 Unix servers, 37,834 Windows servers, 210 Linux servers and 53 other OS servers. Siemens also supports 14,000TB of storage. The feedback from customers was positive.

Rating: Positive

SunGard Availability Services provides hosting and managed IT data center services in North America. It delivers these services through 33 data centers in the U.S. and Canada. Overall, SunGard supports approximately 960 Unix/Linux servers, 8,760 Windows servers and 2,280 other OS servers (under the classification of managed servers). Feedback from its references was positive.

Rating: Positive

Early in 2009, Unisys was impacted by the economic downturn, but due to its turnaround program, it was able to achieve a 10.2% net operating profit margin in the third quarter. So, although revenue is still down, Unisys is emerging from a bleak economic time. In North America, Unisys delivers services from four data centers, and supports 64,400 MIPS, 180 Linux servers, 2,200 Unix servers, 5,800 Windows servers and 4,000 other servers. Customer feedback was positive.

Rating: Positive

Wipro acquired U.S.-based Infocrossing to demonstrate its commitment to providing data center outsourcing services. Currently, Wipro has five U.S.-based data centers, where it supports 24,500 MIPS, 1,244 Unix servers, 260 Linux servers and 3,704 Windows servers for customers across multiple industries. Since the acquisition, Wipro has added two data centers in India, and has plans to open data centers in Europe, the Pacific Rim and Latin America. Customer feedback regarding Wipro was positive.

Rating: Positive