The Global Demand for Enterprise Server Market Continue to Propel With the Growing Number of Data Centers With an Improved It Infrastructure

The market for the enterprise server market is expected to surge with a double-digit growth rate owing to a wide adoption of cloud computing among enterprises. Additionally, enterprise servers hold importance in mission-critical applications which usually fault-tolerant and utilize customized hardware and software having low failure rates, thus, maximizes the server uptime. Key features of an efficient enterprise server include data conflation, improved connectivity through effective network management, expedites streaming data connections via UDP broadcast and IP multicast technologies, provides benefit to organizations by making the most out of the limited IT resources, resulting in enhancing the IT productivity.

enterprise server market

Key Trends in 2019:

             1. Adoption of cloud-computing worldwide

Companies and organizations across the globe require an effective, secure and cost-effective solution to manage their data. Cloud storage solutions help companies and organizations reduce their operational costs by saving money on many fronts such as server maintenance, power and cooling costs, and software licensing and upgrade expenses. Many SMEs (Small and Medium Enterprises) with low budgets across the globe are adopting cloud computing solutions owing to the greater access to the internet. According to EuroStat, 26% of EU enterprises used cloud computing in 2018, which rose from 19% in 2014 and 21% in 2016.

Cloud-based solutions improve connectivity among employees and save time, resulting in increased efficiency of business operations. According to Flexera Software LLC, headquartered in the Itasca, Illinois, United States, the multi-cloud strategy is the most preferred choice among the enterprises accounting to around 80%. The adoption of public cloud increased from over 85% in 2017 to over 90% in 2018. Thus, the demand for cloud computing is increasing significantly among enterprises with the growing public cloud spending.

2. Growing IT investment

With cloud storage and cloud computing gaining traction and are being adopted by large and small businesses, the IT spending is also rising simultaneously. This is further providing an impetus to IT services in staying ahead in the current technology era. Modern digital technologies such as artificial intelligence (AI), virtual reality (VR) are coming into practice and the sector is being dominated by the cloud infrastructure. With more than half of the activities in most of the business enterprises are on the cloud-based platforms, the IT spending continues to soar with the surge in demand for these cloud-based solutions. Therefore, cloud computing, big data, and IT security have already been prioritized as the top drivers for IT spending. Many developing countries are investing heavily in information technology in order to achieve higher economic developments. The United States has invested the maximum of its total spending on information technology. Moving on to the Middle East region, the Kingdom of Saudi Arabia is also showing interest in investments in information technology on an international level.

3. Rapid growth of internet of things and big data

There will be an increasing number of connected devices in the coming years with the rapid adoption of the internet of things and this will create trillions of data every hour that needs to be handled, and here comes the big data which can easily solve the problem. Big data has the capacity to handle huge and complex data, Hadoop is the open-source software ecosystem which has the provision for an immense data storage and high processing power with the ability to manage virtually n number of tasks from the IoT devices. Thus, providing assistance in coping up with the increasing volumes of data and, in turn, fueling the market growth.

4. Growing number of data centers

As the number of data generated every year continues to soar showing no signs of slowing in the future as well, the companies are moving on to the expansion of their data storage capabilities with the growing adoption of cloud computing. Thus, the growth in the number of data centers provides an excellent option for managing huge volumes of data. Hence, with the increasing global demand for huge data storage, the number of data centers is also continuing to surge, propelling market growth as well. Additionally, the focus is being laid towards the hyperscale data centers, resulting in demand for servers. This is because of the fact that these hyperscale data centers rely on specialized infrastructure scaling cloud computing to achieve high performance, thus, contributing to reducing power consumption and lowering of carbon footprint. Europe houses the tech hubs in a number of major cities which include Dublin as the center of tech excellence with booming data centers, Netherlands as the fastest growing data center market, Germany having a high internet bandwidth capacity and London, which is referred to as the tech capital of Europe and one of the world’s largest data center markets. The City of London has one of the largest and the most comprehensive financial centers globally and is regarded by the investors because of its solid regulatory, legal and tax environments, known for its supportive market infrastructure and highly skilled and dynamic workforce.

Future Prospects:

Growing trend towards the adoption of AI and Machine learning in cloud computing

With technological advancements in the IT industry, AI and machine learning are proving to be a disruptive technology, providing benefit to enterprises across various industry verticals. As the companies are moving on to the adoption of cloud computing, AI is benefiting the companies in increasing the computation power with more sophisticated algorithms. The technology is becoming crucial in managing huge data overload with network devices carrying billions of gigabytes each day. With growing digitalization, AI along with cloud computing will further enhance the abilities of the cloud forming an “intelligent cloud” and will be helpful in predicting and analysing situations, thus serving as an intelligent platform for task performance without human intervention, thus avoiding human error.