Mega Data Centers: Market Shares, Strategies, and Forecasts, Worldwide, 2017 to 2023

The Cloud 2.0 mega data center market is set to grow from $86.9 billion in 2016 to $388.5 billion by 2023.

The 2017 study has 418 pages, 175 tables and figures. Worldwide mega data center markets are poised to achieve significant growth with the Internet of Things (IoT), the wireless data explosion, and increased use of video creating more digital data to be managed. The use of smartphone apps and headsets or glasses that are augmented reality platforms to project digital information as images onto a game image or a work situation create a lot more data to be managed.

The study is designed to give a comprehensive overview of the Mega Data Centers: market segment. Research represents a selection from the mountains of data available of the most relevant and cogent market materials, with selections made by the most senior analysts.

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Commentary on every aspect of the market from independent analysts creates an independent perspective in the evaluation of the market. In this manner the study presents a comprehensive overview of what is going on in this market, assisting managers with designing market strategies likely to succeed.
The mega data centers are different from cloud computing in general, and different from the existing enterprise linear computing data centers. The mega data centers are handling infrastructure automatically, eliminating manual process for infrastructure, creating a separate application layer where all the work gets done. The operative nomenclature is containers. The operative software is orchestration.

Mega centers are moving data at the speed of light. This represents a huge change in computing going forward, virtually all the existing enterprise data centers are obsolete because moving data at the speed of light demands different infrastructure from moving data using existing cabling that is not fiber. This study addresses these issues. As enterprises and cloud vendors build data centers with the capacity to move data inside the data center at 400 GB per second, more data can be managed, costs will continue to plummet, and efficiency goes up.

The mega data centers are needed to handle all manner of new quantities of digital information. All manner of devices will have electronics to generate digital data turning it into monitored digital information with alerts to permit response to streams of information that demand response, as for example cardiac data going into a cardiac monitor in a hospital intensive care unit. New monitoring situations emerge. The connected home will provide security on every door, window, and room with alerts that can be sent to and accessed from a smart phone. The refrigerators and heaters will be connected and be equipped with rule based logic to detect problems and send relevant info so they can be turned on and off remotely.

In industry, work flow will be automated beyond single process to multi process information management. The sheer scale of the fabric is fundamentally changing how the market leaders monitor and troubleshoot the data center. Components and links behave the same. Baselines and outliers are key to active auditing for problems. Priority-driven alerting and auto-remediation are in place.

Amazon (AWS), Microsoft, Google, and Facebook data centers are in a class by themselves, they have functioning fully automatic, self-healing, networked mega datacenters that operate at fiber optic speeds to create a fabric that can access any node because there are multiple pathways to every compute node. Five of the largest-scale internet firms - Apple, Google, Microsoft, Amazon and Facebook - continue to invest heavily in building out datacenters globally, with capital spending at the companies totaling more than $115 billion over the past 14 quarters. In Q2 2016, capex at the five companies increased 9.7% sequentially and 60.5% over the same quarter two years ago. The pace of capex at large-scale internet firms in general has been increasing over the past several years.

As more people connect and as Facebook creates new products and services, this type of traffic is a small proportion of all the data that needs to be managed. Inside the Facebook data centers machine to machine traffic is several orders of magnitude larger than what goes out to the Internet.

Back-end service tiers and applications are distributed and logically interconnected. They rely on extensive real-time cooperation with each other to deliver a fast and seamless experience on the front end. The exchange of data between servers represents a complex automation of process to deliver a range of features to users.

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Functioning fully automatic, self-healing, networked mega datacenters are being put in place. Facebook provides an example of a company that redefined the datacenter and addressed the challenge of making the entire data center building one high-performance network. Instead of a hierarchically oversubscribed system of clusters, the fabric can support high traffic data exchange across the servers with a clear and easy path. Creating a modular solution that can adapt to different-size data centers has been a top priority. Disaggregation of hardware and automation has been a very productive way to approach this task.

IoT is in the early stages of an explosive growth cycle. According to the lead author of the study Pokémon Go grew to a massive 45 million daily active users per day after two months in the market, with the market reaching $250 million for the vendor Niantic by September 2016 after two months starting from zero.

The Pokemon Go phenomenon raid adoption raised awareness and expectation for the vision of augmented reality AR and digital enhancement of the surroundings. Digital enhancement as IoT is just human explanation of our existing surroundings. Digital economic leveraging of data provides better management of the innate natural world and of the machines we use to perform work. IoT is set to become an indispensable part of people’s lives. Digital real time processing using mega data centers is poised to take off.

Functional automated vehicles are driving around as Uber cars in San Francisco. This is generating IoT data that is used for navigation and for transaction processing.

According to the lead author of the study, “The Cloud 2.0 mega data center market is set to grow from $86.9 billion in 2016 to $388.5 billion by 2023. All regions, North America, Asia, and Europe are expected to have significant growth in terms of revenue. APAC is expected to experience an increase in market traction, throughout the forecast period. With 20.8 billion IoT endpoints predicted to be in service by 2020, the time is right to leverage the business value of the IoT by building mega data centers that manage the onslaught of digital data in a manner that is cost effective.

Organizations are hampered by siloed systems that inhibit growth and increase costs. Mega data centers function as universal IoT platforms that overcome legacy limitations and simplify device integration, to enable connectivity and data exchange. Industrial end-to-end process automation markets are anticipated to reach $7 trillion by 2027, growing at a rapid pace, providing remarkable growth for companies able to build new data center capacity efficiently.

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