The global data center market is set to grow at a Compound Annual Growth Rate (CAGR) of close to 11% during the forecast period, according to research company Technavio.
The research involved covers the present scenario and growth prospects of the global data center market for 2016-2020. According to Technavio, the market is dependent on the construction of innovative data center facilities worldwide.
Technavio highlights the following four factors that are currently contributing to the growth of the market:
- Increased spending on cloud data center
- Increased use of big data analytics
- Growing IoT
- Need for colocation and managed service data centers
In regards to increased spending on cloud, Technavio says that many cloud service providers (CSPs) construct cloud data centers that cost up to billions of dollars to offer cloud-based services to end-users and enterprises.
The research company says that these CSPs include AWS, Microsoft Azure, and Google Cloud. Growing SMEs prefer to run their business operations through CSPs, colocations, and web hosting cloud data centers due to benefits such as scalability, reliability, and cost reduction.
Another factor that Technavio highlights is increased use of big data analytics.
Rakesh Kumar Panda, a lead analyst at Technavio for data center research, says big data analytics facilitates faster analysis and better utilization of computing resources.
“For predictive and consumer analytics operation of big data sets, enterprises are procuring high-performance computing infrastructures in data centers,” says Panda.
“Big data infrastructure spending includes compute, storage, and network and infrastructure software.”
Panda also puts emphasis on the need for colocation and managed service data centers
“An enterprise operating a colocation facility instead of building its own data center can derive several benefits," says Panda.
"Data center colocation is a facility that rents computing servers, storage, and network. It minimizes the utilization of power and bandwidth and enhances the security of enterprise IT equipment."