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Data Center Transformation Market Insight
Data center transformation is the process to upgrade an organization's IT infrastructure to improve its performance, capabilities, and efficiency. The process can include data center migration, adding software-defined components and virtualization, large-scale changes to hardware, and automation of business processes. It may deliver real business benefits, such as reduced costs as well as greater IT agility. Also, it helps to enhance end-user and customer productivity with improved network & service availability, responsiveness, and reliability.
Impact of COVID-19 on Data Center Transformation Market
Top impacting factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis
Numerous factors such as growing data center traffic, and growing investments on data center technologies are some of the key driving factors of this market. In addition to this, rapidly growing adoption of advanced technologies such as Big data Analytics, cloud, and IoT across numerous enterprises as a part of their digital transformation strategy is causing the burden on the data centers, further driving the demand for data centers transformation market. Moreover, rising demand for enhanced data center efficiency due to the growth in the number of data centers and its increasing reliability drives the market growth. However, lack of skilled personnel and regulatory & portability compliance issue may hamper the growth of the market in forecast period. Furthermore, mounting demand for software-optimized data centers is expected to create a lucrative opportunity in the global data center transformation market.
Growth in data center traffic:
As more number of enterprises are switching to SaaS-based applications and the number communicating devices are increasing at rapid pace, data center traffic across the globe is also increasing. The consumers are increasingly using popular services such as social networking, streaming video, and Internet search. On the other hand, business users are adopting enterprise resource planning (ERP), analytics, collaboration, and various other digital enterprise applications. The after mentioned factors creates new data center demands by fueling the growth in data center transformation market. For instance, as per the Cisco’s latest Global Cloud Index, cloud traffic will represent 95% of total data center traffic by 2021 as the adoption of cloud services adoption creates new data center demands. Thus, increase in data center traffic is one of the key driving factors of the growth of the data center transformation market.
Growth in investments on data center technologies:
The key players operating in the market are popularly investing in latest data center technologies as well as building of new data centers to provide cloud services to businesses and government institutions, among other verticals. For instance, in May 2020, Microsoft Corporation announced the investment of $1 billion in Poland to build a data center that will provide cloud services to financial institutions, businesses, and other organizations. Under this investment, Microsoft inked an agreement with domestic cloud provider Chmura Krajowa to offer cloud services across Poland as well as parts of Central Europe.
In addition, the need to help digital transformation efforts in a post-COVID-19 pandemic world has resulted in accelerating investments across the data centers, further fueling the data center transformation market. For instance, in August 2020, Alibaba Cloud, the China’s cloud computing provider announced the investment of $28.2 billion in cloud infrastructure and the construction of data centers over the next three years under its efforts to help digital transformation efforts in a post-pandemic world. Such investments across the data center drives the global data center transformation market during forecast period.
Key benefits of the report:
Key Market Segments
Key Market Players