Skip to main content

Open Source Propels Hyperscale Data Center Growth

Driven by the requirement for more flexible and cost-effective data center infrastructure models, the combined market for cloud hardware and software components will grow at a 12 percent CAGR through 2019 to reach $38.3 billion, according to the latest market study by Technology Business Research (TBR).

“Vendors are seeding the cloud components market with both product portfolio and go-to-market enhancements that will drive opportunity growth,” said Allan Krans, principal analyst at TBR.

According to the TBR assessment, the participants in this market are enabling more service providers to embrace cloud delivery through enhanced management platforms, a growing number of managed service capabilities and open source software standards such as OpenStack.

Revenue opportunities for server, storage and data center networking hardware are robust, accounting for more than two-thirds of cloud computing components revenue in 2014.

Moreover, they will continue to rise as a percentage of revenue through 2019, driven by the emerging open source hardware and software movement, according to the TBR current estimates.

Besides, Google, Amazon and other very large cloud service providers are buying vast amounts of custom-designed hyperscale data center hardware to keep pace with growing demand for their public cloud services globally.

This trend has given way to the rapid growth of  the Original Design Manufacturer (ODM) market in the Asia-Pacific region, but the legacy Original Equipment Manufacturer (OEM) players are beginning to slow their progress by launching their own hyperscale and high-performance computing server offerings.

TBR believes that these OEMs will also capture growth opportunities from slower but more steadily growing demand for private cloud data center build-outs, with dedicated reference architectures and converged systems.

Demand for cloud computing hardware is forecast to remain strong through 2019, but integrating, managing and securing these environments is creating challenges for the vendor's customers.

As a result, TBR estimates operations management and security software will post a CAGR of 15.1 percent from 2014 to 2019, reaching nearly $5.2 billion.

Investment in capabilities such as DevOps automation, integrated management and more advanced data encryption that eases hybrid cloud computing complexity and data risk now represent the leading opportunities for new growth.

Popular posts from this blog

Global Rise of Domestic Payment Ecosystems

Alternative Payment Methods (APMs) – comprising digital wallets, instant payments, and QR payment systems – are experiencing explosive growth that's reshaping the global financial services marketplace. According to the latest worldwide market study by ABI Research , the combined global transaction value for APMs is projected to reach $142 trillion by 2030. What's particularly fascinating is the underlying driver behind this trend: a growing desire for financial sovereignty, with nations developing domestic payment ecosystems rather than remaining dependent on international financial networks. Payment Ecosystem Market Development In 2024, approximately 45 percent of the global population used digital wallets – a remarkable adoption rate for a technology that barely existed a decade ago. China leads this transition, with 95 percent of its population using WeChat's payment functionality. WeChat exemplifies the "super app" phenomenon, where payment capabilities are in...