The hyperscale data center market was estimated at over USD 1.00 billion in mid 2015. The market is expected to experience significant growth over the forecast period owing to rising computing, networking, memory and storage resources demand in distributed or grid computing environments. Cloud computing has been changing data storage requirements and its rapid growth is expected to increase product demand over the forecast period. The product supports cloud services and is incorporated primarily in inexpensive off-the-shelf servers. Cost efficiency and flexibility to scale up are expected to propel the market over the next seven years.
Cloud companies investing in hyperscale data centers have been influencing the business of original design manufacturers. ODMs are manufacturers and the designers of white-labeled servers which are being sold by numerous technology vendors such as HP and EMC. ODMs direct sale to cloud based providers such as Google, Microsoft and Amazon is expected to augment the hyperscale data centers market over the forecast period.
Annual global IP traffic is expected to reach two-zettabyte threshold and the video content is expected to account for 80% of the global consumer internet traffic. Web services companies use hyperscale data centers to ingest, transcode, and process videos and this is expected to have a significant impact on industry growth over the next seven years.
With the help of the hyperscale data centers web services, numerous companies apply algorithms to the models that can recognize, classify and analyze relationships in the data and can be used to recommend content, tag photos and deliver relevant advertising.
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The new server and network design reduce power losses with direct current powered drives. In addition, the product is uniform and can save time on troubleshooting failed components which in turn is expected to increase their demand over the forecast period. The hyperscale data is employed in various application areas including social media, web 2.0, cloud computing, internet commerce, online game hosting and big data. Hyperscale business can be widely used by online and telecommunications companies. Increasing application scope in the internet banking sectors is expected to create new business avenues for the product over the next seven years.
Increasing application performance, server density and energy efficiency help reduce total cost of ownership. Traditional enterprise servers are extensive management tools and their equipment include network switches, blade systems, computing management, storage networks and hot-swappable hardware. The costs of this equipment and their complexity are expected to be major barriers for companies to meet efficiency requirements, product performance and TCO. However, open-source software and simple management tools are incorporated in hyperscale servers which help eliminate hardware component use and help to reduce the consumer cost. Hyperscale data centers operating efficiency and reduced operating expenditures is expected to increase product demand over the next seven years.
The key properties of the product include scalability for excellent performance, throughput, and capacity. The product also provides storage platform for low database transactions, high-capacity, protected data storage and replicated bulk storage. The OEM and ODM hyperscale segment is expected to be the fastest-growing server segment on account of its wide application scope in web interface, clustered database, bulk data storage, media serving, third-party hosting and data analytics.
North America is the largest cloud services market and dominates the hyperscale data center industry on account of increasing investments for technology development and low operation costs. Asia Pacific is expected to be the fastest growing market over the forecast period n account of their growing demand for various IT applications.
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