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Data Center Tech to See Continued Market Growth

Data Center Technology

A new study by Research and Markets shows continued growth is to be expected in virtualized and nonvirtualized physical servers through 2021.

According to the report, “Global Virtualized and Nonvirtualized Physical Servers Market 2017-2021,” this growth is slated to be at a CAGR of 5.26 percent over the next four years.

Researchers gathered data for an in-depth analysis of the market landscape and its vendors, with added insight from industry experts. They evaluated the market globally, dividing their results into segments based on geographic regions: Americas, APAC, and EMEA.

One major factor contributing to the global growth is an increase of business operations in general. More-and-more, larger organizations continue the adoption of virtualization and other cloud-based services. In addition, big data analytics and digitalization has increased the need for servers with cross-platform support. In response, there is a collective effort among processor and hardware manufacturers to create greater efficiency in data centers in order to remain competitive among enterprises who rely on server technology for these needs.

OpenStack technology – an open source cloud computing platform – is also being seen more frequently as enterprises manage sizeable data storage workloads in data centers. OpenStack APIs are deployed as IaaS, which helps to control large pools of storage, networking and computing resources.

Hardware manufacturers like Dell EMC, Lenovo, IBM and HPE are continuing to improve efficiency in their machines to enable greater server management. Data centers are becoming increasingly more complex with every passing year, and having a greater number of vendors contributes to this as it comes to compatibility issues. Data centers may have over 1,000 servers operating at any one time, which are interlinked with storage devices. If any of these need to be replaced, incompatibility will create operational problems that can be addressed with greater server flexibility.

The major vendors in the study were:

  • Cisco Systems
  • Dell
  • HPE
  • IBM
  • Lenovo
  • VMWare

Other prominent vendors included:

  • StackVelocity
  • Citrix Systems
  • Fujitsu
  • Huawei Technologies
  • Inspur Technologies
  • MiTAC Holdings
  • NEC
  • Nutanix
  • Oracle
  • Quanta Computer
  • Sugon Information Industry
  • Super Micro Computer
  • Wiwynn

The growth seems to counter most recent quarterly reports from the server market which have shown a decline. The report by Research and Markets shows the growth as physical and virtual servers together, rather than physical servers alone. The worldwide physical server market has slowed due to hyperscale datacenter growth and fewer high-end servers being sold. According to IDC, Q4 of 2016 showed a revenue decrease of 3.3 percent from Q4 of 2015 for volume and mid-range systems. High-end systems fared worse, with a year-over-year decline in revenue of 10.7 percent.

So, while the hardware market itself is shifting, the importance of data centers is vital and the abilities of the physical servers to efficiently run virtual solutions is paramount to overall business operations around the world. This explains why vendors are competing to create more efficient systems, even if it means selling fewer machines. It’s another reason why services are being incorporated into the channel from traditionally hardware-based companies. The needs of cloud-based computing are specialized and not every business wants to have staff in-house who is responsible for its operation, creating opportunity to provide the sale of hardware, software & services.

Are you a reseller of data center solutions? We are known for the savings we provide on data center hardware – whether it is the servers themselves, as well as storage. We also have hard-to-find parts that together with our solutions from the secondary market have helped numerous companies maintain business continuity by extending the life of their existing infrastructure. Contact us today to see how we can help.