The Data Center Server market is
expected to witness high growth owing to the growth in the telecommunication
industry. The telecom market is expected to fuel by increasing demand of
consumer internet usage and by growing demand of business mobility solutions.
The emerging market of telecommunication industry is expected to show highest
growth rate in the next seven years due to the increasing domestic investments,
high economic development, and increasing foreign investments.
Data center server market is also
expected to see growth owing to the growth of Enterprise resource planning
applications in the industries. The ERP is projected to show growth of more
than 5% CAGR over the forecasted period due to the increasing organizations
dependency on business processes integration. Today, globally every industry
finds ERP as a solution to reduce cost, increase operational efficiency,
customer satisfaction, increase productivity and increase revenues. The data
center server is basically a facility primarily used to house computer systems
and associated components.
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The market has seen boom after
the introduction of dot-com services in the period of 1997-2000 and after the
introduction of cloud computing. They generally include redundant data
communications connections, backup power supplies, security devices, and
environmental controls (fire suppression, air conditioning). With the adoption
of client-server model, the market of data center server has become crucial for
many industries such as IT, Telecommunication, Defense, Manufacturing, and
Automobile.
The global data center facilities
support in consolidating the large data centers to a centralized location,
thus, purveying the computing resources from that single location. This propels
the data center server market to have better performance capability, high
computing density and less physical space compared to earlier rack systems.
Data center servers have facilitated organization to have better power
consumption, thus driving s demand globally. Today growing demand of cloud
computing has also led the businesses and government organizations to upgrade
the data centers to a higher degree so that transition of information, and
business process do not take much resources. For an effective functioning of
data center servers, a balanced investment is required in stretching up the
facility with housed equipment.
Key drivers that are expected to propel the market are end user
adoption due to the lower operational cost, lower power consumption cost, and
higher business productivity from the existing infrastructure facilities.
The new technologically advanced data center, referred as “lights-out” is also
projected to fuel the market growth in the forecasted period. It is typically
an ideal data center for eliminating the requirement for direct access by
employees, as its operations can be conducted without staff and lighting. They
are majorly accessed from a remote system through the automation program. This
kind of data center servers reduces lot of energy, staffing costs, and threat
of malicious attacks upon the infrastructure.
The market is segmented by data
center type into Tier 1, Tier 2, Tier 3 and Tier 4. Tier 1 level data centers
requires single non-redundant distribution path serving the IT equipment,
Non-redundant capacity components, and basic site infrastructure with expected
availability of 99.67%. Tier 2 level has to meet every requirement of Tier 1
and redundant site infrastructure capacity components with expected
availability of 99.74%. Tier 3 level has to meet every requirement of tier 2
and concurrently maintainable site infrastructure with expected availability of
99.98%. Tier 4 level has to meet every requirement of tier 3 and fault-tolerant
site infrastructure with electrical power storage with expected availability of
99.995%. The market is segmentation by end user type into small size, medium
size and large size organization. The market is segmented by industry vertical
into IT & Telecom, BFSI, Healthcare, Public sector, Energy & Power, and
Manufacturing.
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The market is segmented largely
by region into North America, Latin America, Asia Pacific, Europe, and Middle
East. The North American and the European regions accounts for more than half
of the market share globally largely by the US. This is mainly due to presence
of companies that are dedicated in large data center servers. The Asia Pacific
region is expected to witness fastest growth due to the increasing investments
and growth in industries such as Automotive, Finance, Infrastructure,
Healthcare, IT, and Cloud Data Service. Particularly countries such as India,
China, Japan, and Singapore accounts for major market share of more than one
third mainly because of increasing Globalization and increasing economic
developments. Organizations working in these countries have high demand of data
center servers as compared to other countries in APAC.
Middle East & African is a
high potential market as people have very high disposable income but due to
lack of awareness about cloud services and data centers, they tend to use
conventional services of data management for their business processes. In the
forecasted period, it is expected that the market of MEA show a substantial
increase in the demand primarily due to the increasing investments by foreign
companies. The key market players in the market are Cisco Systems (U.S.),
Hewlett-Packard (U.S.), Lenovo Group Limited (China), Dell (U.S.), Fujitsu
(Japan), Hitachi (Japan), and Huawei (China). These companies cater services to
companies such as Alibaba, Facebook, Amazon, Google, Microsoft, Tencent, and
Baidu.
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