Global Data Center Interconnect Market: Data Center Interconnect Consolidated due to the Proliferation in Demand for Data Connectivity

Global Data Center Interconnect Market

Data center interconnect is the technology utilized for the connectivity of two or more data centers situated at short, medium or even long distances from one another inclusive of their content, services and components with each data center. These data centers are connected with the help of highly-efficient optical connections. With the help of this interconnectivity, data centers can share all of their content between them while providing back-up services and limiting the redundancy and drawbacks of each individual data center.

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Some of the main factors behind the growth of this market are:

·         Concentration on reduction of high power consumption: Various IT enterprises providing data-centers are focusing on developing more efficient data center in terms of their energy consumption in comparison to the performance that they provide. This need for development of more efficient data centers have given rise to adoption of data center interconnect service. This service essentially results in sharing of information, resources and components available with each individual center between one or more data centers. This sharing of resources and interconnect results in significant reduction in energy consumed for successful operations of a data center

·         Enhanced demand from end-use verticals: Demand for data centers in the various enterprises and industries have increased significantly, this has been a result of vast generation of data from a number of organizations adopting advanced electronic components such as sensors, cameras, IoT devices, AI-powered systems. These devices are known to generate vast amounts of data which cannot be stored on their data storage that are situated on-premises. This need has resulted in organizations outsourcing the storage solutions to specialized data center enterprises, wherein the infrastructure is provided by these IT enterprises along with specialized services, software and secure storage options

The market is segmented on the basis of type as product, software, services; application as workload & data storage mobility, shared data & resources, server high-availability clusters, real time disaster recovery & business continuity; end-user as CNPS/ICPS, communication service providers, enterprises, government.

Some of the recent market developments are as follows:

  • ·         In June 2019, Intel Corporation announced that they had acquired Barefoot Networks, which will help in better integration of data centers due to Barefoot Networks’ expertise in Ethernet-based fabric products as well as software for data center. This acquisition will help in better interconnect services for data centers as this service is undergoing rapid demand due to its importance in creating more efficient data centers
  • ·         In May 2018, Equinix, Inc. announced that they are going to expand their data center situated at “London Slough campus”. “LD4 International Business Exchange (IBX)” will be able to support the latest collection of trading platforms, vendor data and firms dealing in electronic trading. This will enable business to expand their interconnectivity with more than a thousand businesses operating in London. This campus is one of the busiest network nodes available to the customers with around ninety service providers offering high-levels of performance

“According to Data Bridge Market Research, global data center interconnect market is growing at a healthy CAGR of 11.9% during the forecast period of 2018 to 2025”

Some of the major players operating in the market are Cisco Systems, Inc., Equinix, Inc., Digital Realty Trust, Ciena Corporation, Nokia, Huawei Technologies Co., Ltd., Infinera Corporation., ADVA Optical Networking, Juniper Networks, Inc., Colt Technology Services Group Limited, Extreme Networks, Inc., Fiber Mountain, Inc., Pluribus Networks, ZTE Corporation, RANOVUS Inc., FUJITSU and Megaport among others.

The market is growing healthily due to the increasing adoption rate of data connectivity solutions, which results in various interconnected enterprises to share information that helps in their performance improvements, analysis, reporting of business operations. This connectivity in cases of data centers is achieved through data center interconnect which helps in better integration and distribution of information allowing different users and enterprises to update the information at hand with them.