Skip to main content

A Place within the Network as the Platform

The datacenter network market reached $8.7 billion in 2007, up 17 percent from $7.6 billion in 2006, according to one of three new "Place in the Network" market studies published by IDC.

The IDC study shows that the datacenter network continues to support strategic initiatives, including customer migrations to new virtualized dense computing in the datacenter.

As a result, IDC predicts this market will continue to grow at a healthy 6 percent compound annual growth rate (CAGR), reaching $11.9 billion in 2012.

"The datacenter is in the midst of unprecedented change driven by a combination of factors all converging to make the datacenter a real-time responsive resource for organizations," said Lucinda Borovick, research vice president, Datacenter Networks.

"Our research shows that the datacenter network has an important and unprecedented role to play in the datacenter of the future as infrastructure changes, such as multicore processors and server virtualization combined with fundamental changes in utility cost structures, drive a shift in the very nature of datacenter buildouts."

In addition to the datacenter, the remote branch office is becoming one of the top network IT initiatives of the decade. According to another recent "Place in the Network" study, many enterprises see a strategic opportunity to provide value at the branch, as the closest point of contact to the customer.

IT organizations want to deliver resources to support branch office growth while keeping operational and management costs in check.

"Enterprises view the branch as a critical beachhead for IT to deliver business value to the enterprise. Remote branch networking revenue will reach $13.9 billion by 2012," continued Borovick.

In a third new study, Network Equipment Spending by Place in the Network, IDC presents an analysis of how and where end users are spending their data network equipment budget. Place-in-the-network shifts are creating opportunities for enterprise network equipment suppliers.

While most opportunities today remain in the core network, IDC believes that vendors should be aware of branch office and other remote user trends relative to teleworkers and temporary networks.

Popular posts from this blog

How Cloud Fuels Digital Business Transformation

Across the globe, many CEOs invested in initiatives to expand their digital offerings. User experience enhancements that are enabled by business technology were a priority in many industries. Worldwide end-user spending on public cloud services is forecast to grow 21.7 percent to a total of $597.3 billion in 2023 -- that's up from $491 billion in 2022, according to the latest market study by Gartner. Cloud computing is driving the next phase of digital transformation, as organizations pursue disruption through technologies like generative Artificial Intelligence (AI), Web3, and enterprise Metaverse. Public Cloud Computing Market Development "Hyperscale cloud providers are driving the cloud agenda," said Sid Nag, vice president at Gartner . Organizations view cloud computing as a highly strategic platform for digital transformation initiatives, which requires providers to offer new capabilities as the competition for digital business escalates. "For example, generativ

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year