Data Center Networking Market to Intensify Business Growth

The global data centre market has been facing stiff competition to address the more practical challenges of digital innovation. Many networking companies like Cisco, HP and Brocade that are currently leading the data centre industry have come up new products and services to cope up with the challenge. Although, these companies offer a variety of solutions, one of the main focuses has remained on innovative technologies.

According to a recent report by Transparency Market research, the global data center networking market, is worth US$63.05 bn, and the numbers are expected to rise up to US$228.40 bn by the end of 2025. The report also predicts the global market to expand at 15.5% CAGR between 2017 and 2025.

North American companies are expected to be the main contributors while the Asia Pacific region is adjusting fast to the distinctive needs of data centre businesses. The hardware segment of the industry will bring a revenue share of 52% in 2016. Mergers and acquisitions will become more prevalent among top companies looking to expand their key capabilities across geographies. With technology based innovation fueling investments in the global data centre market, companies have recognized the need to align services to for controlling data center networks.

The growth in the data center networking market is going to drive the adoption of cloud technologies in a bigger way. With organization getting the benefits of cloud computing, they could consider focusing on innovation and execution of data centre solutions. Other areas where the market has shown an improvement is service delivery and risk management. “Improvements in service delivery and risk management will yield gains for the market in the coming years,” said a lead TMR analyst.

Companies are experimenting with new processes and technologies to cope with the changing business climate. Data centers have long transformed businesses into a more flexible and dynamic business unit. However, the challenge to comply with stringent regulatory laws will continue to pose a threat to data centre companies in the near future. Hence, it becomes important for cloud service providers to draw out strategies to better understand the laws and guidelines of a specific jurisdiction before entering the market.