Datacentre Network Market Becoming Increasingly Important
Datacentre Network Market Becoming Increasingly Important
September 24, 2008: Three new studies from IDC are safely tipping the datacentre network market to grow in the coming years, with it already hitting US$8.7 (AU$10.34) billion in 2007 – a jump of 17 percent on the US$7.6 (AU$9.04) achieved in 2006.
Grouped under the title "Place in the Network", the three studies published by IDC have found that the market will grow by an annual compound growth rate of six percent to reach US$11.9 (AU$14.15) billion by 2012.
The studies also show that the datacentre network continues to support strategic initiatives, including customer migrations to new virtualised dense computing.
“The datacentre is in the midst of unprecedented change driven by a combination of factors all converging to make the datacenter a real-time responsive resource for organisations,” said Lucinda Borovick, research vice president, Datacenter Networks.
“Our research shows that the datacentre network has an important and unprecedented role to play in the datacentre of the future as infrastructure changes, such as multicore processors and server virtualisation combined with fundamental changes in utility cost structures, drive a shift in the very nature of datacentre buildouts."
IDC adds that in addition datacentres, remote branch offices are becoming one of the top network IT initiatives of the decade, as the second of the three studies - the “Worldwide Enterprise Remote Branch Network 2008-2012 Forecast” - has found that many enterprises see a strategic opportunity to provide value at the branch.
The analyst firm says that this is due to the branch often being the closest point of contact to the customer, leaving IT organisations wanting to deliver resources to support branch office growth while keeping operational and management costs in check.
"Enterprises view the branch as a critical beachhead for IT to deliver business value to the enterprise. Remote branch networking revenue will reach $13.9 billion by 2012,” added Borovick.
In the last of the three studies “Network Equipment Spending by Place in the Network”, IDC has looked at how and where end users are spending their data network equipment budget, and has found that place-in-the-network shifts are creating opportunities for enterprise network equipment suppliers.
The firm says that while most opportunities today remain in the core network (datacentre and headquarters/campus), vendors should be aware of branch office and other remote user trends relative to teleworkers and temporary networks.
Comment on this story