The data center network infrastructure market is anticipated grow at a CAGR of nearly 5 percent during 2016-2020, according to Technavio’s latest report.
“Increase in the implementation of software-defined networking and network function virtualization solutions will have a significant impact on the adoption of network infrastructure among data centers worldwide,” said Abhishek Sharma, a data center research expert from Technavio.
The Americas have dominated the global data center network infrastructure market with a share of over 47 percent in 2015.
EMEA with over 28 percent share was in the second position, while APAC with 24 percent share was in the third rank in the global data center network infrastructure market.
The US leads the spending on data centers in the Americas. The construction of new data centers has decreased in the US over the past two years. Investment in data center construction has grown with additional investment in renewable energy sources for data center operations.
The number of data centers is growing in Canada and Latin America. Telecom operators, colocation and managed hosting services vendors, and CSPs own most of the data centers in operation in the US, Canada and Latin America.
Software-defined and NFV-enabled technologies will lead to higher revenue generation through the adoption of high-performance network infrastructure.
Western Europe has a strong presence in colocation and managed hosting data centers. Companies such as Daimler, BMW, and Audi, along with telecom operators such as British Telecom and Deutsche Telekom, and CSPs such as Google and Microsoft operate a few large data centers in the region.
The customer base for CSPs and colocation vendors is growing rapidly with the growing adoption of cloud-based services by SMEs.
NTT and China Telecom and certain global IT service organizations operate most the data centers in the Asia Pacific region. Many European data center providers are also considering Asia as a location after the UK’s exit from EU. If that happens, it will be a big boost to the APAC market.
Cloud service providers such as Amazon Web Service and Microsoft recently opened data centers in India and are already operating facilities across Asia Pacific such as Singapore. Colocation providers are expanding their data center presence in Asia Pacific. Adoption of NFV among service providers and SDN among enterprise will see a considerable increase.
Arista Networks, Brocade Communications, Cisco Systems, Juniper Networks, HPE and Dell are the top vendors in the global data center network infrastructure market.
editor@infotechlead.com
