High Availability Server Market Recent Industry Developments And Growth Strategies Adopted By Players

A melee of large and mid-level vendors are seen to be competing against one another in the global market high availability server. In order to outsell one another, savvy players are expending time and money on configuring high availability server into system infrastructure with an intent to offer superior features.

Some of the key players operating in the global High Availability Server Market are Cisco Systems, Inc., IBM Corporation, Oracle Corporation, and Hewlett-Packard Enterprise. The aforementioned companies have a strong presence across the globe. Other key vendors in the market are Fujitsu, CenterServ, Dell Inc., Stratus Technologies, Inc., NEC Corporation, and Unisys Global Technologies. In the near future, foray of new players is expected to further heat up competition in the market.

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As per a report by Transparency Market Research, the global market for high availability server would likely rise at a strong 11.7% CAGR between 2017 and 2025 to attain a value of US$12,306.9 mn by 2025 from US$4,105.0 mn in 2015.

North America to Emerge Dominant as Multinationals Look for Opportunities Therein

Depending upon the service sector, the global market for high availability server can be classified into banking, financial service and insurance (BFSI), IT and telecommunication, retail, medical and healthcare, government, and manufacturing. Among them, the BFSI segment accounts for maximum share in the market as it needs continued storage and access to massive amounts of confidential data. A high availability server enables them to do just that with its secured pool storage. The BFSI segment accounted for 19% share in the market in 2016.

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From a geographical standpoint, North America at present leads the global market for high availability server with maximum share. This is because of multinationals wanting to bolster their positions by expanding in the developed Canada and the U.S. market. Growth in the North America market is also attributed to the greater installed base and higher penetration of high availability servers in prominent end-use industries of IT and telecommunication, BFSI, retail, and e-commerce, among others. In 2016, North America accounted for a substantial 42% of the market share in the global high availability server market.

Centralized Backup and Disaster Recovery Feature Drive Uptake

A number of factors are responsible for driving the global market for high availability servers. At the forefront of them is the ever-rising demand from the banking and financial institutions that need to store large amounts of data and access them too continuously and securely. “The demand for highly available and fault tolerant server infrastructure is growing across all end-use industries. Moreover, growth in data center equipment market has widened the scope of the market. This is specifically due to centralized backup and disaster recovery features needed for data centers that are best supported by high availability servers. Technological enhancements and need for security management high availability server has further led to development of high availability servers that have the capability to provide systems with 99.999% (five nines) availability solutions,” explains the lead analyst of the report.


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Steep Costs Deter Market

One factor serving as a roadblock to the global market for high availability servers is their steep cost. Apart from that, they also need additional management tools to support such advanced features and this makes their maintenance costly too. In addition, not many are aware of the high availability servers and this is also posing a challenge to the growth in their market.

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