Fuelled by the demand for outsourcing and utility services by companies in communications, banking, finance and manufacturing sectors, IDC foresees the Internet data centre market growing at 36 per cent compounded annually to $3.30 billion by the year 2005 in comparison to the present $0.713 billion.

India, China and Indonesia are expected to top the list by achieving growth rates of 56 per cent, 84 per cent and 45 per cent respectively in the period under reference. In the process they will beat other nations like Thailand, Malaysia, the Philippines and Taiwan, which are expected to notch up growth rates of 37 per cent, 32 per cent, 32 per cent and 30 per cent respectively.

Indonesia and Korea are expected to do better with growth rates of 45 per cent and 38 per cent respectively. Australia, Hong Kong and New Zealand are expected to fall behind with growth rates of 29 per cent, 27 per cent and 18 per cent respectively.

IDC sees a lot of consolidation taking place over the next few years as the economic slowdown will drive out weak players from business and force them to either merge with bigger and stronger players or close shop. To stay ahead of others, players will have to invest in equipment and software programmes to ward off the threat of obsolescence and if this is done, small but nimble players will give the larger ones.