March 15, 2018
WELLESLEY, Mass., March 15, 2018– Benefits pioneered by large scale cloud providers are helping to drive the global market for hyperscale data centers, according to a report by BCC Research. Future growth is expected to come as hyperscale data centers expand into mainstream data centers. This shift will be led by large financial services, telecommunications and retail enterprises, which need economies of scale and the flexibility the technologies provide.
The global market is expected to see a compound annual growth rate (CAGR) of 20.3% through 2022, when it could be worth $98.2 billion, according to the report Global Markets for Hyperscale Data Centers.
Hyperscale data centers, which are built with stripped down, commercial, off-the-shelf computing equipment, can have millions of virtual servers and accommodate increased computing demands with reduced physical space, cooling and electrical power. The savings in hardware can pay for custom software to meet business needs.
Major players in the market include AT&T Inc., Cisco Systems Inc., DataCore Software, Equinix Inc., Fogo Data Centers, Global Switch, Hewlett-Packard Enterprise, IBM, Juniper Networks, Lenovo Group Ltd., The NEC Group, Oracle Corp., Pivot3, Quantum Corp., Radware, SanDisk, Tintri Inc., Violin Memory and Western Digital Corp, among others.
“Although pioneering companies such as Facebook, Amazon and Google are leveraging the hyperscale data center infrastructure, the technology is not an easy adaptation for the typical IT organization,” said BCC Research Senior Editor and report author Michael Sullivan. “Transforming from the IT environments for different functions, architectures and vendor control systems to a streamlined virtualized and centralized computing, storage and network resources are a tremendous paradigm shift.”
Market Challenges: Outages, Design and Performance Bottlenecks
Although hyperscale data centers provide flexible and powerful solutions for IT resource management, the market’s transformation is accompanied by new challenges and disadvantages. For example, early adopters have found it difficult to determine the converged infrastructure requirements of mission-critical applications after virtualizing their infrastructure. Further, virtualization creates performance bottlenecks that can slow application performance. Likewise, designing and implementing a converged infrastructure reliant on shared resources among clustered servers can also raise complications.
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Global Markets for Hyperscale Data Centers( IFT123A )
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