Data Center Equipment Market – Role in IT Industry Raise Opportunity at 12.9% CAGR

Data center is a facility used to accommodate computing systems with its associated components such as storage systems and telecommunications. The increasing concern for data backup and data storage has created unprecedented demand for data center equipment. Some important data storage equipment include hard disks, solid state drives, flash memories, and CDs and DVDs.
Growing demand for virtualization in networking environments, and cloud services for improved performance has created the unprecedented demand for data center equipment such as servers, networking equipment, power distribution systems, storage devices and others. With rising proliferation of cloud computing, business organizations are monitoring data centers to a higher degree in areas such as availability, security, adherence to standards, and environmental impact.
The report provides complete understanding of the driving factors, restraints, and prevailing trends behind the popularity of data center equipment. The report also provides better understanding of the market with the help of Porter’s five forces analysis and further highlights the competitive scenario across different levels of the value chain. Impact factors such as market attractiveness analysis have also been explained in the market overview section of the report, in order to give a thorough analysis of the overall competitive scenario in the global data center equipment market.
Introduction of new photovoltaic technologies and improvements in existing photovoltaic (PV) solar panels is expected to improve the efficiency offered by data center equipment in future. Additionally, provision of incentives by governments for renewable energy generation is expected to increase the adoption of green data centers. Hence, the adoption of new technologies is expected to make data centers more converged with cloud, more virtual and greener. Such changes are expected to offer end users of data centers with benefits such as low operational cost, and low capital and physical space requirement.
Different types of equipment used in the data center include servers, power distribution systems, and network equipment among others. In 2013, servers dominated the data center equipment market followed by networking equipments. High demand for servers is due to surge in demand across organizations which face need for centralized data storage for smooth and efficient operations. Different types of data center equipment are selected on the basis of particular requirement of end-users.
Data center equipments are used by organizations across different industry verticals, such as banking and finance services and insurance (BFSI), telecommunications, manufacturing, retail, enterprises, and government among others. Global data center equipment market in 2013 was dominated by telecommunications segment, which accounted for 24.9% revenue share. Telecommunication sector generates massive amount of data in the form of call records, huge customer database, and sales among others. Hence, telecommunication industry needs efficient data center equipments in order to manage and process this tremendous amount of information.
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Large and aggressive competitors are each bringing their own class of new products to address this market. Acquisitions, industry consolidations and new alliances among market players are expected to increase for companies to remain competitive in this market. Some of the major players in this market include Emulex Corp., Digi International Inc., Cisco System Inc., F5 Networks Inc., NEC Corp., Brocade Communication System Inc., Schneider Electric SA, Meru Networks, Alcatel-Lucent, and Hewlett Packard Co. among others.

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