Data center colocation is a provision for leasing computer servers and storage mechanisms to other enterprises. Such facilities offer several alternatives such as bandwidth, power, and physical security to the servers and storage. Colocation and managed hosting amenities are beneficial for customers across several industrial sectors. Colocation also lowers the expenses on IT infrastructure and enhances security and ownership management of the data. The US has the highest number of operational data center colocation facilities. The growing requirement among enterprises for a cost-effective renting rack space and operating IT infrastructure has boosted the demand for colocation facilities that are reinforced with innovative cooling, power, and carrier networking infrastructure.
The report, data center colocation market in the US, is part of Technavio’s ICT research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as automatic identification system, cloud computing, data center, enterprise application, IT security, ITO and BPO, and product lifecycle management. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into
Outlook of the global enterprise storage market
Technavio’s market research analyst anticipates the global enterprise storage market to account for a CAGR of approximately 16% during the forecast period. The growing adoption of cloud-based storage services, big data analytics, and internet-of-things (IoT) will aid in the growth of this market during the estimated period. Due to the recent increase in internet penetration, the amount of digital data that is being generated will increase. This recent increase in the generation of digital data will foster the demand for efficient storage infrastructures as they help enterprises to efficiently store and process data. Additionally, factors such as the rising need to store data that is generated by end-user industries like BFSI, healthcare, manufacturing and retail will lead to the substantial growth of this market until the end of 2020.
Recent product innovations by vendors will foster the prospects for market growth during the forecast period. In this market, the vendors are constantly innovating in packaging and formulations as it will help them to attract customers and spur their revenue generating capacity. For instance, the advent of flash-based, hybrid, and unified storage systems will help to spur market growth as these systems will gain traction among enterprise consumers during the forecast period.
Segmentation by storage systems and analysis of the enterprise storage market
- Storage area networking (SAN)
- Network attached storage (NAS)
- Direct-attached storage (DAS)
In this market study, analysts have estimated the SAN segment to grow at an impressive CAGR of around 12% during the forecast period. The demand for SAN will increase as many data center operators are focusing on the adoption of energy efficient IT infrastructures
Overview of the global enterprise network-attached storage (NAS) market
Extensive research carried out by the analysts at Technavio has shown that the global enterprise network-attached storage (NAS) market will grow at an impressive CAGR of nearly 22% over the predicted period. The demand for collaborative working environment between enterprises is one of the key drivers that is gaining momentum in the market. NAS systems benefit enterprises by providing a central location for storing business data and also grants users remote access to files stored on devices. Enterprises can also back up their data from off-site locations by logging in and uploading files to the NAS system. As a result, the cost of buying NAS systems with large hard drives is significantly reduced as it allows access to files stored on the NAS drives.
The growing implementation of software-defined storage (SDS) is another factor that will propel the growth prospects for this market in the coming years. SDS is an evolving concept that separates software services such as data management, data protection, placement of data, and I/O capabilities from the underlying storage infrastructure. This software increases the flexibility, scalability, and automation of the enterprise storage infrastructure. In addition, SDS helps reduce the overall storage costs for enterprises. This technology is implemented via appliances as a part of a scale-out NAS solution. Since SDS is a key component of software-defined data center (SDDC), it is gaining widespread popularity among enterprises worldwide.
Competitive landscape and key vendors
The global enterprise NAS market is dominated by the
Overview of the data center storage market
According to the market research analysts at Technavio, the global data center storage market is anticipated to witness staggering growth and will post an impressive CAGR of more than 15% over the forecast period. Storing data in the cloud is proving to be an effective medium for enterprises around the world. With a large amount of data generated through Internet-of-things (IoT), storing this data on-premise is turning out to be an expensive affair for most enterprises. As a result, the majority of enterprises have started moving their data to the cloud storage through service providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform. Moreover, the demand for cloud storage has also increased because of reduced cost, better scalability, and high availability of storage. With the growing adoption of cloud-based storage, CSPs are involved in the construction of cloud data centers worldwide. These data centers are likely to be installed with advanced storage infrastructures such as flash and hybrid arrays, which will aid in this market’s growth in the coming years.
One of the significant trends bolstering the growth prospects of this market is the rising adoption of flash-based storage. SSD storage, commonly known as flash storage, offers greater efficiency compared to traditional HDD storage. Currently, flash-based storage is more expensive than HDD-based storage arrays. The vendors are continuously
Overview of the global software-defined networking (SDN) market
Technavio’s market research analyst predicts that the global software-defined networking (SDN) market will grow at a spectacular CAGR of close to 35% during the forecast period. A primary SDN market driver is the rising demand from companies for advanced services. Many companies are in the process of business expansion to gain market shares as well as a competitive advantage. Such growth necessitates the deployment of infrastructure to meet business needs during this phase. Consequently, the demand for virtualization will increase as it helps companies to reduce data center related capital and operating expenses drastically. SDN has made the virtualization of entire networks very simple by allowing programming and management to be handled with a single console. SDN technology is adopted by telecom and cloud services providers who deal with the deployment and administration of networking tasks so that they can offer better services to end users. Such transitions to meet services demands is expected to be a major promoter of market growth during the forecast period.
In this industry report, analysts estimate factors like the growing adoption of software-defined security to spur market growth during the predicted period. The need for software-defined security will rise as most enterprises are concerned about the security of the virtualized and automated infrastructure before adopting SDN. Software-defined security is designed to help enterprises deploy and automate network security controls quickly. and is managed using specific policies that are customized to meet a company’s needs. Some significant benefits of such security systems are the facilitation of dynamic security across domains like the cloud, mobile, and traditional networks. This feature is a relatively recent development and is expected to gain popularity among companies that want to
Outlook of the global cloud storage gateway market
Technavio’s market research analyst anticipates the global cloud storage gateway (CSG) market to grow at a profound CAGR of approximately 41% during the forecast period. The growing demand for cloud-based storage and the recent increase in enterprise data will aid in the growth of this market. Recently, it has been observed that many enterprises are struggling to handle the data generated by the augmented use of mobile technologies. Consequently, many enterprises are backing up their vital data in the cloud due to its cost effectiveness. The ability of CSG to facilitate the transfer of data from on-premise platforms to a cloud-based storage platform will result in its augmented adoption during the predicted period.
Recent product innovations are expected to boost market growth during the forecast period. During the forecast period, it has been observed that many vendors are constantly innovating in packaging and formulations, and are even inventing new ways to increase the consumption of their products. Cloud service providers such as Amazon and Microsoft offer virtual gateway appliances for enterprises adopting their cloud storage platforms. Also, modern storage arrays are also being equipped with gateway support features to facilitate the transfer data to the cloud. The advent of new and improved gateway support features will help this market to gain significant traction during the estimated period.
Geographical segmentation of the cloud storage gateway market
In this market study, analysts have estimated the Americas to be the largest market for CSG during the forecast period. This region currently dominates the global CSG market and accounts for a market share of around 52%. It is expected that the