Data Center Networking Market

1
Coherent market insightsMarket Research and
Business Consulting Services
https//www.coherentmarketinsights.com/market-insi
ght/digital-impression-system-market-3590
2
Market Overview

• Data center networking is the method of
  establishing and interconnecting all physical-
  and network-based equipment and devices within a
  data center facility. It allows a digital
  connection between data center infrastructure
  nodes and equipment to ensure that they can
  connect and transfer data between one another and
  on the Internet. Deployment of hyperscale data
  centers has increased in the recent past wherein
  data center infrastructure is provided on lease
  by companies. This is mainly due to recent
  advancements in digital technology. Typically, a
  data center network forms a network
  infrastructure that complies with industry
  regulations, offers security, stability, and
  reliability, supports networking requirements for
  modern technologies, and can fulfill the
  requirements of network communications in peak
  usage.

3

• The Global Data Center Networking Market,
  Component Type (Hardware, Software and Services)
  By Industry Vertical (Telecommunications,
  Government, Retail, Media Entertainment, BFSI,
  Healthcare, Education and Others and by Region
  (North America, Europe, Asia Pacific, Latin
  America, Middle East and Africa) - Global
  Forecast to 2027, is expected to be valued at
  US 308.05 billion by 2027, exhibiting a CAGR of
  15.8 during the forecast period (2019-2027), as
  highlighted in a report published by Coherent
  Market Insights..

4
Market Dynamics- Drivers

• Growing adoption of cloud data storage to reduce
  operational cost is expected to drive growth of
  the global data center networking market during
  the forecast period
• In the recent past, organizations have started
  depending more and more on data centers as a
  delivery system for products, news, adverts,
  information, and communication due to increased
  demand for services and access via internet.
  Furthermore, there is a rise in power density of
  cabinets and a decline in the demand for physical
  servers and additional cabinets, owing to high
  growth of cloud market. This, in turn, saves
  additional space and cost required. Hyperscale
  data centers provide cloud services in the form
  of storage, network security, and servers for
  business applications on lease thereby removing
  the total cost of ownership (TCO) of IT data
  center infrastructure. For instance, VMware, a
  cloud infrastructure and business mobility
  company, was able to save 1.5 Bn for one of
  their clients in healthcare by avoiding data
  center upgrades and increasing CPU utilization to
  80 from the existing 5 with the help of VMware
  virtual infrastructure software.

5

• Increasing implementation of data center
  virtualization and cloud computing is expected to
  propel the global data center networking market
  growth over the forecast period
• Virtualization refers to a method of formation of
  various logical devices from a single physical
  device. Increasing demand from organizations for
  real-time user interaction, efficient use of
  storage devices, provision of on-demand services,
  and control over data center networks are
  supporting growth of the data center
  virtualization and cloud computing market.
  Furthermore, rising adoption of cloud computing
  and virtualization is boosting the demand for
  various data center networking products namely
  virtual switches and various switching operating
  systems, which in turn, is expected to propel the
  global data center networking market growth
  during the forecast period.

6

• North America region dominated the global data
  center networking market in 2019, accounting for
  33.4 share in terms of value, followed by APAC,
  Europe, South America and Middle East
  respectively.

7
Market Dynamics- Restraints

• Uncertainty regarding data protection laws is
  expected to restrain growth of the global data
  center networking market during the forecast
  period
• Cloud service users need to comply with rules of
  the jurisdiction they operate and location where
  cloud service provider provides their services
  such as their data centers. According to the U.S.
  Department of Justice, warrants require the
  company to provide the documents it controls,
  regardless of location. Furthermore, according to
  the report of the United Nations Conference on
  Trade and Development (UNCTAD) on Cyberlaw
  Tracker, until April 2016, only 108 countries had
  data protection laws, 35 had draft laws, and
  around 60 developing countries had no data
  protection laws at all. Business owners are more
  concerned about compliance burdens and
  regulations, which in turn, may hinder innovation
  and trade, while governments are concerned about
  national security and safety. Thus, these factors
  are expected to restrain the market growth in the
  near future.

8

• Increasing complexity of data center designs is
  expected to hamper the global data center and
  networking market growth over the forecast period
• Over the years, the design of data centers has
  evolved significantly, become more and more
  complex. Recently formed data centers are more
  complex than their predecessors, which makes it
  difficult to operate and maintain. Moreover, lack
  of skilled professionals to operate and maintain
  these data centers is expected to hinder the
  market growth over the forecast period.

9
Market Opportunities

• Growing demand from oil gas and telecom
  industries is expected to present lucrative
  growth opportunities
• Edge computing has emerged as a powerful option
  for data storage, in which sensors transmit data
  to close-by edge computing devices that analyzes
  the data, thereby eliminating the need to send it
  back to a remote data center. Industries such as
  water utilities, power stations, and oil gas
  have adopted Internet of Things (IoT) devices and
  sensors to better monitor and manage their
  infrastructure through rapid automation.
  Moreover, in the near future, telecom industry is
  expected to adopt data center networking due to
  significant amount of data generated over the
  internet.

10

• Rising impact of Internet of Everything (IoE) to
  provide major business opportunities
• Massive amount of data is created by users as
  well as airplanes, automobiles, and buildings,
  which is pushing cloud services. The demand for
  analytics is driven by the growth of
  machine-to-machine (M2M) connections and
  applications. Moreover, application analytics can
  occur at edge of the device with edge computing
  or at central data centers.

11

• Rising impact of Internet of Everything (IoE) to
  provide major business opportunities

12
Market Trends

• Growing volume of data center IP traffic
• Data centers are the essence of providing
  storage, communication, delivering IT services
  and networking to number of network users,
  businesses, and devices. The nature of data
  center traffic is undergoing a fundamental change
  due to rise of cloud-based applications,
  services, and infrastructure. Moreover,
  increasing virtualization of data centers, which
  provides services that are flexible, efficient,
  and fast-to-deploy, is an essential traffic
  enabler in the rapid extension of cloud computing
  and data centers. Advent of Internet of
  Everything (IoE) phenomenon, growth of mobility,
  increasing digitization, and widespread adoption
  of multiple devices and connections are expected
  to drive growth of data center IP traffic.

13

• Increasing data center and cloud storage capacity
  and utilization
• Growing internet penetration combined with
  ownership of multiple devices has supported
  growth of cloud services such as consumer cloud
  storage. Users can store and share videos, music,
  and photos through an easy-to-use interface at a
  relatively low cost. According to the Cisco
  Global Cloud Index Report 2016, the storage
  capacity of data centers will grow to 1,842 EB in
  2020 from 382 EB in 2015, out of which 88 of
  capacity will be accounted for by the cloud. On
  the other hand, data stored in data centers will
  grow from 171 EB in 2015 to 915 EB in 2020,
  growing at a CAGR of 40.

14
Segment Information

• In global Data Center Networking market, by
  software component, the Switching operating
  system (OS), sub-segment dominated the global
  market in 2019, accounting for 32.7 share in
  terms of value, followed by Management software,
  Virtual switches, and controller respectively..

15
Competitive Section

• Key players operating in the global data center
  and networking market are Google, Inc., Huawei
  Technologies Co. Ltd., Cisco Systems, Inc.,
  Brocade Networking Solutions, Hewlett Packard
  Enterprise, Extreme Networks, Inc., Arista
  Networks, Avaya, Inc., Juniper Networks, Dell
  Inc., and Microsoft Corporation.

16
Key Developments

• Key players in the market are focused on mergers
  and acquisitions, in order to gain competitive
  edge in the market. For instance, in March 2017,
  Extreme Networks, a U.S.-based networking
  company, acquired Brocade Networking Solutions
  data center networking business for US 55
  million.
• Major companies in the market are focused on
  partnerships and collaborations, in order to
  enhance the market presence. For instance, in
  January 2020, Hewlett Packard Enterprise
  partnered with Cumulus Networking, an open
  networking software vendor, to address the
  increasing demand for network infrastructure.

17

• Request Sample Report
• Request Customization
• Download PDF Brochure
• Talk to Analyst
• https//www.coherentmarketinsights.com/market-insi
  ght/data-center-networking-market-3600

18
About Us

• Coherent Market Insights is a global market
  intelligence and consulting organization focused
  on assisting our plethora of clients achieve
  transformational growth by helping them make
  critical business decisions.
• What we provide
• Customized Market Research Services
• Industry Analysis Services
• Business Consulting Services
• Market Intelligence Services
• Long term Engagement Model
• Country Specific Analysis

19

• Thank You!
• Kindly follow CMI Social Media
  Profiles for the latest company updates
• Face book
• LinkedIn
• Twitter
• https//www.coherentmarketinsights.com/