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Data Center Transformation Market - Growth, Trends, And Forecast (2020 - 2025)

Published on: Jan 2020 | From USD $4250 | Published By: MORDOR INTELLIGENCE | Number Of Pages: 120

Market Overview

The data center transformation market was valued at USD 7.47 billion in 2019 and is expected to reach USD 15.45 billion by 2025, at a CAGR of 12.88% over the forecast period 2020 - 2025. Data center providers across the globe are gradually moving towards data center transformation in order to increase the overall efficiency whilst reducing the operational costs.

- Owing to the rapidly rising adoption of cloud, IoT and Big data Analytics across various enterprises as a part of their digital transformation strategy, the burden on the data centers are also increasing leading to the growth in the data centers globally.
- Moreover, data center traffic across the world is also increasing, considering the number of increasing communicating devices and more enterprises switching to SaaS-based applications, as forecasted by Cisco, will also drive the market.
- With the increasing reliability and the increase in the number of data centers around the world, the data center providers are finding it difficult to maintain consistency and operational efficiency.
- Energy efficiency considerations are also gaining importance among data centers since the energy accounts for almost 40% of total costs (according to network strategy and technology company Ciena). Infrastructure management, as a part of the data center transformation, is expected to gain traction over the years, considering the attempt to increase their energy efficiency as a cost-saving measure.

Scope of the Report

Data center consolidation refers to that technologies and strategies which allows a firm to work on more efficient IT architectures. This means physically consolidating multiple data centers or making a single large data center run more effectively on fewer resources.

Key Market Trends

Data Center Consolidation Service are Expected to Grow at a Significant Rate

- Data center consolidation is the service that organizations provide which plans to reduce the size of a single center or merge one or more center in order to reduce the overall operating costs and reduce IT footprint.
- Data center consolidation services offered by vendors in the market allow enterprises to have better and efficient control of their data center assets. Consolidating physical locations, consolidating software into less hardware, etc, are the solutions provided by the vendors for the data centers.
- Increasing awareness of the data center transformation with respect to consolidating the physical locations has been evident in recent times. According to the Data Center Alliance, 62% of data centers are making consolidation efforts.
- With the increasing data center IP traffic globally, there is a need to consolidate the data centers to reduce cost and also to improve functionality, which is one of the primary reason boosting the growth of the data center transformation market.

North America Occupies the Largest Market Share

- The North American region holds the largest market share of the global cloud and internet data centers according to CNNIC. This high share can also be due to the fact that many major players are headquartered in this region.
- North America also contributes substantially to the global data center demand from various end-user industries such as IT, BFSI, retail, and healthcare.
- The Data Center Optimization Initiative (DCOI) by the federal government primarily aims to encourage data center players to consolidate the inefficient infrastructure, optimize existing facilities, achieve cost savings, and transition to a more efficient infrastructure.
- To generalize the statement, through this initiative the government intention is to reduce the costs of physical data centers by a minimum of 25% by the end of the fiscal year 2018. The dominance of this region in the market, combined with the increasing need to reduce operational costs, provides scope for the adoption of data center transformation solutions, hence driving the market.

Competitive Landscape

The data center transformation market is highly competitive owing to the presence of many players in the market operating in domestic as well in the international market. The market appears to be moderately concentrated with the key players adopting strategies like product innovation, design innovation. Some of the major players in the market are IBM Corporation, Cisco Systems, Inc., Dell EMC (Dell Inc.) among others.

- June 2019 - Microsoft Corporation and Oracle Corporation have reportedly reached an agreement to make their two cloud computing services work together with high-speed links between their data centers.
- May 2019 - Microsoft Corporation announced that it will build some of its most advanced datacenters to date in Sweden. These new data centers in GŠvle and Sandviken are planned to be among the most sustainable in the world. Microsoft is building these data centers to meet the needs of future cloud services

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support

1 INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Need to Reduce Costs and Increase Efficiency of Data Centers
4.3.2 Adoption of Cloud-based Services
4.4 Market Restraints
4.4.1 ROI Concerns Over the Investment across Low Load Data Centers
4.5 Industry Attractiveness - Porter's Five Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry

5 MARKET SEGMENTATION
5.1 By Services
5.1.1 Consolidation Services
5.1.2 Optimization Services
5.1.3 Automation Services
5.1.4 Infrastructure Management
5.2 By Level of Data Center
5.2.1 Tier 1
5.2.2 Tier 2
5.2.3 Tier 3
5.2.4 Tier 4
5.3 By End User
5.3.1 Data Center Providers
5.3.2 Enterprises
5.3.2.1 IT and Telecom
5.3.2.2 BFSI
5.3.2.3 Healthcare
5.3.2.4 Retail
5.3.2.5 Manufacturing
5.3.2.6 Aerospace, Defense, and Intelligence
5.3.2.7 Other End Users
5.4 Geography
5.4.1 North America
5.4.2 Europe
5.4.3 Asia-Pacific
5.4.4 Latin America
5.4.5 Middle East & Africa

6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 IBM Corporation
6.1.2 Cisco Systems, Inc.
6.1.3 NetApp, Inc.
6.1.4 NTT Communications
6.1.5 Dell EMC (Dell Inc.)
6.1.6 Microsoft Corporation
6.1.7 Schneider Electric SE
6.1.8 HCL Technologies Limited
6.1.9 Accenture plc
6.1.10 Wipro Technologies
6.1.11 Hitachi Vantara Federal, Corporation
6.1.12 Emerson Network Power, Inc

7 INVESTMENT ANALYSIS

8 MARKET OPPORTUNITIES AND FUTURE TRENDS

SECONDARY RESEARCH
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.

PRIMARY RESEARCH
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.

MARKET ENGINEERING
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.

EXPERT VALIDATION
The market engineered data is verified and validated by a number of experts, both in-house and external.

REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.

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