ResearchAndMarkets.com has added up some numbers and divided by them by its shoe size and reached the conclusion that the hyperscale data centre market will grow at a CAGR of 24.25 percent over the next five years.
In its report, with the riveting title “The “Hyperscale Datacenter Market – Growth, Trends, Forecast (2019-2024),” the outfit defined hyperscale datacentres as a facility owned by the companies to offer cloud spaces for cloud computing and big data storage. It has at least 500 storage cabinets covering 10,000 Sq. Ft of space and has over 5,000 servers connected with an ultra-high-speed fibre network and offers with infrastructural cost to the end-user.
The report said that there has been immense growth in the data centre adoption across the industries for “leveraging” the power of cloud computing and adapt to the high volume of data generation.
However these datacentres have several problems – they have been underused and the power distribution and cooling systems cause 82 percent of the overall data centre infrastructural cost. Recently, larger-scale organizations have been emphasising on reducing their CAPEX and OPEX, which is driving the adoption of hyperscale datacenters worldwide.
Cisco has said that the cloud data centre traffic is expected to reach 19.5 zettabytes per year by 2021, while the traffic from the cloud will account for 95 percent of the overall datacentre traffic by the same year along with the increase in the big data and cloud computing across the industries. This is another significant factor fuelling the hyperscale datacentre market.
However, the report warned that IT hyperscale infrastructure was massive, which makes the traditional methods of data traffic flow monitoring insufficient and not cost-effective at the hyperscale level. Hence, the infrastructural and operational challenges for the companies is somewhere restricting the growth of the hyperscale data centres market.
IT organisations are inclining towards offering cloud-based services such as PaaS, IaaS, and SaaS to support business operations. The cloud-based services provide flexibility and ease of operations to lead the faster adoption of their offerings and are expected to grow further in the forecast period. The companies offering SaaS have been continuously making strategic partnerships with cloud providers to offer better customer offerings.
In April 2019, Melius partnered with Cobalt iron to provide its Adaptive Data Protection SaaS solution to customers in Ireland and the UK. With the partnership, the company has planned for providing SaaS with reduced cost with complying all the levels of compliance and legislation requirements.
The report adds that the increase in the number of smartphone and internet users across the world is estimated to fuel the adoption of hyperscale datacentres in the telecommunication industry. According to the World Internet Stats, the global internet users in 2018 grew by over eight percent to reach 4.20 billion users from the previous year.
Telecommunication companies are strategically making moves to offer cheaper subscription plans to gain market share. Virgin Mobile introduced its yearly subscription plan to reduce the customer’s bill by 50 percent by providing three-month complimentary access to Netflix content, such initiatives resulting increase in data generation and storage infrastructure requirement and are expected to drive hyperscale datacentre adoption.
The report said the market for hyperscale datacentres is highly consolidated because of the dominance by a few key companies in the market. The barrier for new entrants is high due to the requirement of the high initial cost to enter into the market. These are companies that are continuously investing in making strategic partnerships and acquisitions to gain more market share.
