-- The segmentation of the data center networking market indicates that the services segment is anticipated to witness a significant growth to reach over USD 8 billion by 2024. Organizations are increasingly outsourcing management activities such as consulting, repairing, and maintenance to licensed external players. The increase in the construction and modernization of facilities is contributing to the increase of professional services such as installation and integration. Additionally, various organizations do not understand their network requirements such as the scalability of their infrastructure and, in most cases, undermine or overestimate their network and storage requirements, making consulting in the data center networking market a prime requisite.
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Global Data Center Networking Market size is set to exceed USD 35 billion by 2024. The adoption of cloud computing techniques across various industry verticals has emerged as one of the key drivers of the data center networking industry growth. Enterprises are increasingly being dependent on the services provided by the data centers owing to the data storage requirements fulfilled by the cloud computing services. These factors are therefore resulting in the market growth, to facilitate better operations of the data centers.
The rapidly rising number of internet users is projected to result in data center networking market expansion. The increasing use of social media services such as Facebook and WhatsApp has resulted in massive data accumulation for these organizations. This has resulted in a high demand for the data center networking industry to provide more flexibility to the organization’s data center for increasing the performance efficiency through robust networking facilities.
The growth of mega data centers and the rising trend of colocation services in developing economies are anticipated to increase the data center networking market demand. Mega data centers are massive data processing environments, which require highly complex networking solutions to efficiently store and process data. Additionally, the increasing trend of colocation services has resulted in large data centers catering to the data requirements of various organizations, resulting in a rising demand for the data center networking industry to efficiently segregate the data of various organizations.
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The demand for a highly skilled workforce for product development and improving the networking infrastructure is bound to hamper the data center networking market growth. It is imperative for the networking infrastructure to be flawless and the absence of skilled technicians and labor force can result in the malfunctioning of data center activities. Additionally, this can result in data losses for the organizations, which can be extremely risky, if used by organizations with malicious intentions.
North American regions including the U.S. and Canada have emerged as dominant drivers of the data center networking market. These regions have a robust internet infrastructure and are relatively more advanced with technological equipment, favoring the data center networking infrastructure. Regions of the Asia Pacific such as India and China are showing a good demand for the data center networking market owing to the proliferation of smartphones and IT infrastructures in these regions.
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Players in the data center networking market include Arista Networks, Hewlett-Packard Enterprise, Juniper Networks, Cisco Systems, Inc., Amazon Web Services, Huawei Technologies Co., Ltd., Dell, Inc., and Microsoft Corporation. These players prefer to enter into partnerships with other players to improve their technological setup and enhance their networking infrastructure. For instance, Amazon Web Services and VmWare collaborated in October 2016, to expand their global cloud reach with technologically-advanced features.
Table of Content: -
Chapter 3. Data Center Networking Industry Insights
3.1. Industry segmentation
3.2. Industry landscape, 2013 – 2024
3.2.1. Data center infrastructure industry landscape
3.2.2. Internet consumption trends, by region
3.3. Industry ecosystem analysis
3.3.1. Raw material suppliers
3.3.2. Manufacturers
3.3.3. Technology providers
3.3.4. Network providers
3.3.5. Service providers
3.3.6. System integrators
3.3.7. Distribution channel analysis
3.3.8. Vendor matrix
3.4. Technology & innovation landscape
3.4.1. Software-defined networking (SDN)
3.4.2. Edge and hyperscale data centers
3.4.3. Silicon photonics usage in data centers
3.4.4. WLAN optimizers
3.5. Network readiness and internet penetration
3.6. Regulatory landscape
3.7. Industry impact forces
3.7.1. Growth drivers
3.7.1.1. Transition to cloud-based solutions in the U.S.
3.7.1.2. Increase in organizational data traffic and big data analytics in U.K and Germany
3.7.1.3. Growth of mega data centers and trend of collocation in China, India, and Mexico
3.7.1.4. Rising adoption of 100Gb switch ports in the U.S. and UK
3.7.1.5. Development of broadband and internet infrastructure in India and Philippines
3.7.1.6. Increase in construction of new data centers and replacement of existing technologies in parts of South America
3.7.1.7. Decline in costs of semiconductor components in Asia Pacific
3.7.1.8. Movement from HDDs to SSDs in data centers across the world
3.7.2. Industry pitfalls & challenges
3.7.2.1. Demand for highly skilled workforce for product development
3.7.2.2. Irregularities in the data protection regulatory landscape
3.8. Growth potential analysis
3.9. Porter's analysis
3.10. Competitive landscape, 2017
3.10.1. Strategy dashboard
3.11. PESTEL analysis
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