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Hyperscale Data Center Market Trends Will be Propelled by Rise in the Adoption of Cloud Computing and Online Services Globally

Author : Ronak Bora | Published Date : 2019-03-12 

The Hyperscale Data Center Market is expected to grow at a steady pace in Singapore owing to the growing demand for high-performance electrical designs and continuous connectivity. Hyperscale cloud and colocation providers are significantly gaining importance in the region. Companies, such as Alibaba, Baidu, and Microsoft, are constructing the hyperscale facilities in Asia Pacific, due to the growing demand for these services in several IT facilities. These factors are anticipated to drive the overall hyperscale data center market growth over the coming years.

The demand is increasing from government agencies and large enterprises owing to the growing adoption of advanced technologies such as big data analytics and hosting for business operational needs, thereby driving the hyperscale data center market. Growing adoption of online & mobile computing services and the use of social media by businesses demand a large number of storage devices for the content owing to which, several enterprises are delegating their computing needs to the cloud-based infrastructure.

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The hardware segment accounted for the majority of the hyperscale data center market share in 2017 and is anticipated to witness a high demand over the forecast timespan. An exponential rise in the number of businesses has led to rising pressure for enhanced data storage hardware solutions. Hardware forms a crucial part of the infrastructure that determines the quality of solutions offered by companies. Key players are focusing on incorporating the latest advanced technologies, such as AI, into their facilities.

The hyperscale data center market is highly susceptible to constant changes in technologies owing to which companies are required to spend large financial resources in R&D activities. Several companies are relying on the hardware components for the storage of the data, which is allowing them to secure and manage the data effectively and also provide efficiency to their customers.

The global annual IP traffic is anticipated to cross the two-zettabyte threshold with video content accounting for more than 75% of the global consumer internet traffic. Several web service providers are constructing and using the hyperscale facilities to process, transcode, and ingest videos, which will have a substantial impact on the hyperscale data center market growth over the coming years.

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The IT & telecom sector accounted for the majority of the industry share owing to the rise in the demand for the video and mobile services. With the increase and advent of several IT services, the amount of data to be stored and managed is increasing rapidly. Several IT & telecom operators are investing heavily in these facilities to expand their market share in the untapped regions, thereby providing an impetus to the hyperscale data center market.

The major players operating in the hyperscale data center market include Dell, Inc., Huawei Technologies Co., Ltd., Quanta Computer, Inc, NVIDIA Co., Lenovo Group Ltd., Intel Corporation, Broadcom Ltd., Cisco System, Inc., Telefonaktiebolaget LM Ericsson, Cavium, Hewlett-Packard Enterprise, IBM Corporation, and Sandisk LLC, among others. The market is highly competitive, where the major players are competing in terms of increase in digital data, customer base, and the need for high computation power.

Intense competition prevails in the hyperscale data center market, where several enterprises are trying to have the most effective and efficient facilities for their businesses to sustain in an intensely competitive environment. Several growing enterprises prefer the construction of new facilities instead of being dependent on managed infrastructure solutions to gain a competitive edge in the hyperscale data center market.

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Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.

About Author

Ronak Bora

Ronak Bora

A graduate in Electronics Engineering, Ronak writes for Fractovia.org and carries a rich experience in digital marketing, exploring how the online world works from a technical and marketing perspective. His other areas of interest include reading, music, and sport. He can be contacted at- [email protected] | https://twitter.com/RonakBora26

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