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

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of