As per report “Data Center Transformation Market by Service Type (Consolidation Services, Optimization Services, Automation Services, and Infrastructure Management Services), Tier Type, End-User, Data Center Size, Vertical, and Region – Global Forecast to 2023”, the data center transformation market is expected to grow from USD 6.45 billion in 2018 to USD 12.00 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 13.2% during the forecast period.
Data center transformation services assist in enhancing and optimizing IT assets to achieve service level agreements. The transformation of data center applications from the client/server architecture generation to the cloud architecture generation has spurred the demand for data center transformation services. Furthermore, factors such as the growing data center traffic and increasing data center spending have contributed significantly to the growing demand for data center transformation services.
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Based on service type, the data center transformation market has been segmented into consolidation services, optimization services, automation services, and infrastructure management services. The optimization services segment is expected to grow at the highest rate during the forecast period. Data center optimization increases the efficiency of enterprises’ data center operations. Optimization involves reconfiguring or changing data centers to reduce the resources required but without hampering the data center functionalities. Data center optimization services help organizations determine how to optimize performance and evolve their data centers to realize more value out of the current infrastructure.
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The tier 1 type segment is expected to grow at the highest CAGR during the forecast period owing to the rapid adoption of tier 1 data center in small enterprises. Tier 1 data centers are characterized by single non-redundant connections to hardware equipment, including power and cooling distribution units. Moreover, small enterprises have lower data availability requirements, and tier 1 data centers are an economical option for SMEs owing to which tier 1 data centers are expected to witness increasing demand from SMEs.
The global data center transformation market by region has been segmented into North America, Asia Pacific (APAC), Europe, Middle East and Africa (MEA), and Latin America. North America is estimated to have the largest market size in 2018, owing to the presence of several vendors and rapid adoption of cloud-based solutions in this region. The market in APAC is expected to grow at the highest CAGR during the forecast period, owing to the increasing awareness and adoption of data center transformation for cost-effective and scalable business operations.
The report also studies various growth strategies, such as mergers and acquisitions, partnerships and collaborations, and developments, adopted by the major players to expand their presence in the market. Major technology vendors in the data center transformation market include Micro Focus (UK), Dell EMC (US), IBM (US), Atos (France), Cisco Systems (US), DynTek (US), Schneider Electric (France), NTT Communications (Japan), Microsoft (US), Bytes Technology Group (South Africa), Tech Mahindra (India), HCL Technologies (India), Performance Technologies (Greece), Rahi Systems (US), Inknowtech (India), GreenPages (US), General Datatech (US), Mindteck (India), Accenture (Ireland), Wipro (India), SoftChoice (Canada), Hitachi (Japan), Cognizant (US), NetApp (US), and Insight Enterprise (US).
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