The emergence of unified, massively scalable computer infrastructure in the current decade has been both an outcome and a catalyst of a new era of computing. Hyperscale data centers are specifically designed to provision cloud computing and storage virtualization solutions, enabling applications like social networking, online gaming, and big data analytics. The rise in demand for open compute projects and energy efficiency, coupled with the need for organized and optimized IT infrastructure, has opened up new possibilities for growth in the industry.
Cloud-based startups and IT companies operating in the cloud are collaborating with public cloud service partners, such as Amazon Web Services (AWS) and Google, for both the maintenance of a distributed storage system, and to enable a reduction in the total cost of ownership of a data center. The Global Hyperscale Data Center Market report from Allied Market Research anticipates major potential for growth from the trends of social media networks, cloud computing, and big data. The global market is expected to earn a whopping $71.2 billion by the year 2022, supported by a CAGR of 20.7 percent during the forecast period 2016–2022. This clearly indicates the lucrative progress of the industry in the current decade.
Industry Verticals Make the Transition to Hyperscale Models
A large number of cloud computing operations across several industry verticals have led to the generation of colossal volumes of data via the cloud. In a bid to sustain their storage models and complicated data centers, many sectors are making the conscious shift towards the adoption of a hyperscale model. Some of the most prominent hyperscale cloud providers, such as AWS, Microsoft, IBM, Google, and Oracle are taking on more customer workloads by changing the dynamics of the colocation data center segment.
The biggest user of these services is perhaps the IT and telecommunications vertical, which requires an efficient computing solution for its massive data storage and processing requirements. According to Allied Market Research, the IT and telecom sector was the largest revenue contributor in 2015, accounting for nearly 26 percent of the hyperscale data center market.
Big data adoption rates in the banking, financial services and insurance (BFSI) sector have also been rising. Allied Market Research estimates that BFSI will contribute the largest portion of hyperscale revenue of any vertical by 2019, and continue its pace of growth through 2022. Vertical hyperscale adoption growth will be propelled by the intentions of finance giants to improve their agility and efficiency in fraud detection, data security, and analysis of customer trends. This is expected to significantly impact the hyperscale data center market as more and more banks and financial institutions will embrace hyperscale models for their computing and colocation solutions.
SDNs — Transforming Data Center Environments
Through the implementation of Software Defined Networks (SDNs) within large-scale data center environments, many public cloud service providers such as AWS, Google, Microsoft, IBM, Oracle, Verizon, and Rackspace are attracting a higher number of cloud-based companies and firms to share physical data center space. The adoption of SDN in hyperscale facilities has the potential to improve efficiency and lead to better regulation of traffic on the servers. This allows vendors to address hyperscale growth through better utilization of their data center network equipment. SDNs also enable more versatile hyperscale data centers through faster reconfiguration options designed to address varying business needs. Enterprises can flatten bandwidth consumption for reduced hardware costs. SDNs also enable enterprises to manage and route data over preferred network channels.
The hyperscale designs built by Google, Amazon, Facebook, and Microsoft are setting a new benchmark on which other IT companies can base their models. The industry is set to broaden its scope and redefine the way modern computing and data storage is achieved with the swift adoption of SDN in data centers, as hyperscale models transform data center environments. This makes the growth outlook for the market very promising, as more and more IT giants and cloud computing firms consider expanding their presence by setting up new data centers, and vendors collaborate with other providers to deploy highly scalable solutions for their existing facilities. All these developments point towards healthy and consistent growth for the entire hyperscale data center market for the foreseeable future.
About the Author
Mufassira Fathima is a content writer at Allied Analytics LLP. She holds a bachelor’s degree in business management and reads, writes and researches on a diverse range of topics.