Increasing Use of Cloud Computing and Need to Reduce the Time to Market for Products and Services Are Driving the Cloud Data Center Market to Aggregate $67.5 Billion by 2023
The increase in demand for data center services from BFSI, healthcare, and retail; and need to reduce the operational and cooling costs are driving the cloud data center market growth. The data center services market will lead the cloud data center market, which is expected to grow at a CAGR of 31.6% during the forecast period.
Bangalore, India, July 18, 2018 (Newswire.com) - Infoholic Research LLP, a global market research and consulting company, has published a study titled “Cloud Data Center Market – Global Drivers, Restraints, Opportunities, Trends, and Forecasts to 2023”
According to Infoholic Research, the cloud data center market will experience a significant growth during the forecast period due to an increase in the demand from segments such as BFSI, government, healthcare, and retail. Further, the rising technological advancements in cloud computing, the need to reduce the time to market of products and services, and the requirement for reducing the operational and cooling costs are expected to fuel the market growth during the forecast period. However, the lack of knowledge and integration services will hamper the technological market. The market is expected to grow at a CAGR of 28.7% during the forecast period 2017–2023 to touch an aggregate of $67.5 billion by 2023.
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“Currently, the cloud data center market will help the users in building scalable next-generation data center that will respond to the changing business needs without increasing the cost and overspending on the service levels. The market is an attractive space for cloud providers, thrid-paty service providers, data center providers, and telecom providers to expand their business in various regions. The IaaS deployment model will hold a major market share in the next 3–4 years due to increasing Internet penetration and innovation in big data and IoT technologies.” – Gowtham Kumar Sampath, Senior Research Manager - ICT.
The storage, server, and networking play a significant role in the data center industry. The cloud storage providers will be responsible for keeping the data available and accessible by keeping the physical environment protected and running. Organizations are using the cloud servers as the production servers or mail servers or application servers or proxy servers or testing servers before entering the production stage. The cloud networking offers redefining of the scalability, administration, and management processes of the classical networks. The network delivers microsecond latency across the entire network fabric since the low latency will improve the application performance and server utilization.
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The cloud data center can be deployed in three ways: SaaS, IaaS, and PaaS. As more and more companies are transitioning and mission-critical applications are shifting to the cloud, the adoption of SaaS will become one of the dominant forces in the future of the data centers. According to industry experts, more than 70% of the CIOs will be pressurized for evaluating the migration of data to the cloud IaaS. IaaS is being used for the new and changing workloads in an organization, however, IaaS is only used for reliable IT workloads due to its ability to reduce costs and increase the efficiency.
The BFSI sector holds a majority of the market share due to an increase in the customer data and financial information that needs to be protected and stored. It is followed by the healthcare sector as there is wide information about patients, employees, and hospitals, which needs to be stored for future processes. The market has a huge scope in the retail and manufacturing sectors as they are generating huge volume of data that needs to be stored for future purposes.
The Americas is set to be the leading region for cloud data center market growth followed by Europe. The market growth in Europe is moderate as the providers have started offering their solutions to European companies. The market in Asia Pacific will be growing due to the increase in the development of data centers, companies improvising their backup offices, increase in facilities by telecom providers, and improvement in service providers.
Ms. Sunanda Ganguli
Infoholic Research LLP
Source: Infoholic research LLP
Categories: Information Technology