Data Center Networking Market: Revenue on the Rise | Leading Key Players are Alcatel-Lucent, Arista Networks, Avaya, Brocade, Cisco, Dell, Delta Electronics, Extreme Networks, Fujitsu Global, Huawei Technologies, IBM, Intel, Juniper Networks, Microsoft
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Key Players operated in this market are Alcatel-Lucent, Arista Networks, Avaya, Brocade, Cisco, Dell, Delta Electronics, Extreme Networks, Fujitsu Global, Hewlett Packard Enterprise, Huawei Technologies, IBM, Intel Corporation, Juniper Networks, Microsoft, NEC Corporation, Schneider Electric, Siemens, VMware, Amazon, AT&T, Berkshire Hathaway, Equinix, Facebook, Google, JPMorgan Chase & Co., NTT Communications, Oracle, SAP, Telefónica, Unisys, Verizon
The rise in the prominence of hyperscale solutions will also drive the demand as they contain a large number of hardware systems such as ADCs and servers. In May 2018, PointOne announced the launch of a hyperscale division that has devoted USD 7.5 billion to the construction of hyperscale campuses for cloud companies, providing an impetus for the data center networking market growth.
The rise in the number of IT & Telecom players and increase in outsourced activities, primarily to countries of the Asia Pacific region, are fueling the demand for the data center networking market. Telecom providers rely heavily on this architecture to generate higher profits owing to the influx of consumer data. For instance, in July 2017, Odata announced that it was investing USD 100 million in Colombian data centers as a part of its international expansion strategy.
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The segmentation of the data center networking market indicates that the solutions segment contributed to over 75% of the overall revenue in 2017. This growth is largely due to the increase in construction activities and the modernization of the existing outdated technologies by organizations seeking to stay ahead of the competition. The adoption of Ethernet switches is anticipated to drive hardware solution growth in the data center networking market owing to companies switching to 100 Gbps ports that allow for faster speeds and the movement of data.
APAC seems to have been depicting a contrasting trend as far as the progress of data center networking market is considered. On one hand, countries like Japan, Singapore and South Korea have been on the technologically advanced path to lead the continent, however, largely nascent markets like Myanmar, Vietnam and Malaysia are yet to progress in the regional sphere. Countries such as India and China though, are now remnant of a higher economy, connected lifestyles, and improved broadband infrastructure, and stand to contribute much to APAC data center networking
Data center networking market giants are betting big on highly advanced storage and memory technologies to gain a competitive edge. Klas Telecom for instance, has recently released an upgraded version of Voyager TDC. Christened as Voyager TDC 2.0, this groundbreaking technology claims to provide users the flexibility of the original system, in addition to NVMe and double storage capacity that ensure better and faster performance.
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If reports are to be relied on, the company will demonstrate how users can integrate AI and machine learning technology at tactical edge, leveraging the ultra-high-power process capability of Voyager TDC at SOFIC 2018. Yet another trend that is quite vivid in the competitive terrain of data center networking industry is technological proliferation via strategic partnerships. All in all, aided by the vast technology landscape where myriad companies are becoming consumer centric and data driven, data center networking market share is forecast to exceed a valuation of USD 35 billion by 2024.
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