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Why the Hyperscale Data Center Market Is Set To Explode? | Global Players are Dell, IBM, Huawei Technologies, Quanta Computer Inc. ????, NVIDIA, Lenovo, Intel Corporation, Broadcom Inc., Cisco, Cavium Inc, SanDisk

Why the Hyperscale Data Center Market Is Set To Explode? | Global

The global hyperscale data center market stands to gain much from the IT & telecom sector, given that the industry is witnessing growing adoption of the large-scale infrastructure facilities due to the increase in data generation and storage requirement. Nowadays telecom operators are offering flexible and affordable internet plans to users to gain a competitive lead over rivals, which in turn has led to an increase in data traffic.

Thus, this rapid increase in data generation has encouraged businesses to introduce a highly efficient and scalable IT environment with high computing power, which in consequence, would have a major impact on hyperscale data center industry size from the IT & telecom sector. The emergence of commercial 5G technology is expected to add further momentum to the global hyperscale data center market.

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The rapid upsurge in data-centric applications and cloud-based services coupled with the continued growth in data traffic, are certain to result in robust demand for hyperscale data centers. Traffic congestion on aging network infrastructure is also resulting in downtimes, reduced capacity, service interruptions and degradation of delivery quality - further signifying a spate of growth opportunities for hyperscale data center market contenders.

The increasing demand for cloud computing and big data across multiple industries is proliferating the hyperscale data center market demand lately. The product adoption has been fueled mainly by the ever-increasing number of mobile devices with internet access. Big data analytics studies huge amounts of data to help enterprises make smarter business moves, enhance operations, and garner higher profits. However, use of these technologies also results in heavy data traffic, which will drive businesses to invest in data center expansions.

A report by Cisco projects global cloud data center traffic to reach 19.5 zettabytes per year by 2021, while traffic from the cloud will account for 95% of all data center traffic by 2021. Hence, increasing data traffic from the growing adoption of cloud computing and big data will primarily drive the hyperscale data center market growth.

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This trend is further supported by the rising number of cloud-based services triggered by the increasing number of smartphone users with access to the internet. Globally, the percent of the population that uses a smartphone is estimated to grow to 48% by the end of 2021. Meanwhile, internet users now comprise 57% of the global population with people spending over 6 hours online each day on an average. This massive increase in mobile users has encouraged organizations to shift their businesses online, generating massive demand for cloud-based services.

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