Story image

Data Center Interconnect market to be worth $6b by 2023

11 Aug 2017

The value of the Data Center Interconnect (DCI) market is predicted to reach USD $6.41 billion by 2023.

That’s according to a new report from MarketsandMarkets, Data Center Interconnect Market by Type (Product, Software, Services), Application (Real-Time Disaster Recovery and Business Continuity, Workload (VM) and Data (Storage) Mobility), End User, and Geography - Global Forecast to 2023.

In 2016, the DCI market was valued at USD $3.19 billion and is expected to reach USD $6.41 billion by 2023, growing at an annual Compound Annual Growth Rate (CAGR) of 10.04%.

The report defines the main contributing factors to this growth as an increasing focus on reducing high power consumption and bandwidth requirements in data centers and growing demand for disaster recovery, data backup, and business continuity.

Rapid migration to cloud-based services are also fuelling growth in the market.

Moreover, the report finds the services segment is expected to grow at the highest CAGR between 2017 and 2023.

The services sector is further segmented into professional services (consulting and integration, and training, support, and maintenance) and managed services.

According to the report, managed services directly maximize the network performance and uptime, minimize the operational risk, and significantly reduce capital and operational expenditures, resulting in a high demand for services in the data center interconnect market.

The report finds the geoclustering application market is expected to grow at the highest rate during the forecast period.

Geoclustering applications enable both active and standby servers to maintain their own storage with an independent and synchronized copy of the cluster data, and supports business continuity by providing location-independent load balancing and failover.

For DCI, geoclustering application provides workload protection across globally distributed data centers, and this benefit is accelerating the demand for the deployment of DCI for the geoclustering application.

The enterprise market, including banking and finance, healthcare, and E-commerce is expected to experience substantial growth between 2017 and 2023, with real-time disaster recovery and business continuity being the most common applications for enterprise DCI.

Asia Pacific (APAC) is expected to be the fastest-growing region for the data center interconnect market.

The APAC region has some of the fastest-growing economies, such as China and India, which are witnessing a rapid adoption of cloud computing.

The report finds the rapid adoption of modern technologies is increasing the need for data centers to manage the high volume of generated data, propelling APAC forward as the fastest-growing regional market for DCI.

Bluzelle launches data delivery network to futureproof the edge
“Currently applications are limited to data caching technologies that require complex configuration and management of 10+ year old technology constrained to a few data centers."
DDN completes Nexenta acquisition
DDN holds a suite of products, solutions, and services that aim to enable AI and multi-cloud.
Trend Micro introduces cloud and container workload security offering
Container security capabilities added to Trend Micro Deep Security have elevated protection across the DevOps lifecycle and runtime stack.
Veeam joins the ranks of $1bil-revenue software companies
It’s also marked a milestone of 350,000 customers and outlined how it will begin the next stage of its growth.
Veeam enables secondary storage solutions with technology partner program
Veeam has worked with its strategic technology alliance partners to provide flexible deployment options for customers that have continually led to tighter levels of integration.
Veeam Availability Orchestrator update aims to democratise DR
The ability to automatically test, document and reliably recover entire sites, as well as individual workloads from backups in a completely orchestrated way lowers the total cost of ownership (TCO) of DR.
Why flash should be considered the storage king
Not only is flash storage being used for recovery, it has found a role in R&D environments and in the cloud with big players including AWS, Azure and Google opting for block flash storage options.
NVIDIA's data center business slumps 10% in one year
The company recently released its Q1 financial results for fiscal 2020, which puts the company’s revenue at US$2.22 billion – a slight raise from $2.21 billion in the previous quarter.