Data Center Consolidation Services Market - Top players are Huawei Technologies Co., Ltd., Maureen Data Systems
Data center consolidation, also known as IT consolidation, is a strategy of a company to lessen its IT-related assets with the use of more efficient and cutting-edge technologies. Opting for data center consolidation services is a common consideration for companies planning to combine one or more facilities or reduce the size of a facility in order to cut operating costs. These services are often used to establish connection between two or more data centers within an enterprise to achieve objectives related to IT and the overall business. One of the major advantages of data center consolidation is that it allows different data centers to pass workload, share resources, and interact with one another. Data center consolidation services can also be employed to group resources of various data centers in order to meet scalability goals.
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There are several factors driving the global data center consolidation services market. One of the major drivers is rising focus on reduction of high power consumption and bandwidth in data centers. Furthermore, rising demand for disaster recovery and data backup services to safeguard business continuity is expected to fuel the data center consolidation services market in the near future. In addition, shift toward cloud-based services has augmented the demand for data centers, which is expected to boost the data center consolidation services market in the next few years. Through data center consolidation services, companies are able to transform their capital expenses into operational expenses and save the physical space for other productive purposes.
However, misuse of the collected data and lack of data security assurance during and after the course of usage are expected to restrict the market during the forecast period. Furthermore, concerns related to data security and reliability such as ransomware/malware attacks are likely to slow down the adoption of data center consolidation services between 2018 and 2026. However, migration by a large number of enterprises from on-premise data centers toward cloud is expected to create opportunities for providers of data center consolidation services across the world, primarily in Asia Pacific, during the forecast period.
The global data center consolidation services market can be segmented based on service type, application, end-user, and geography. Based on service type, the market can be segregated into data center strategy, migration assessment, application blueprinting advisory, and data center migration. In terms of application, the global data center consolidation services market can be divided into shared data & resources/server, workload (VM) & data (storage) mobility, geoclustering/ remote clustering (use of several computing resources located in diverse physical sites to form a single system), and business continuity & real-time disaster recovery. Based on end-user, the market can be classified into government and corporates. The corporates segment can be sub-divided into BFSI, retail & e-commerce, utility & power, media & entertainment, health care, and others (including transportation, education, and manufacturing).
Based on geography, the global data center consolidation services market can be segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is expected to hold a major share of the global market during the forecast period, owing to growing usage of data center interconnect devices, followed by that of data center consolidation services, in sectors such as industrial, commercial, and military & defense across the world. The market in North America is expected to expand at a significant rate from 2018 to 2026, with a major contribution from the U.S. The market in developing economies in Asia Pacific, Middle East & Africa, and South America is expected to witness significant growth during the forecast period.
Data center consolidation is becoming a very popular strategy among organizations. For instance, Hewlett Packard Enterprises has cut the number of its global data centers from 85 to six. With this, the company is expected to save US$ 1 Bn every year. IBM is consolidating 3,900 servers into 30 virtualized mainframes. With this move, the company is expected to gain 8 million square feet of data center space and 80% reduction in energy consumption. Microsoft is expected to save close to US$ 23.2 Mn with the help of data center consolidation.
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Major players operating in the global data center consolidation services market are Huawei Technologies Co., Ltd., Maureen Data Systems, Dell Inc., Rackspace US. Inc., YASH Technologies, and Datalink, a division of Insight.
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