Global Data Center Automation Market Size, Share & Industry Trends Analysis Report By Component, By Operating Environment (Windows OS, Unix OS, and Linux & other Open Source OS), By End User, By Regional Outlook and Forecast, 2022 – 2028
The Global Data Center Automation Market size is expected to reach $18.3 billion by 2028, rising at a market growth of 20.1% CAGR during the forecast period.
A data center refers to the facility with a network of computers and storage systems that is used to process, organize, store, and distribute huge amounts of data for a company or organization. Data center automation is the process of managing and automating a data center's procedures and workflow. It aids in the automation of data center operations, monitoring, administration, and maintenance duties that are now carried out by humans.
The data center team benefits from the prospects created by data center automation, which is currently in the market's stage of deployment strategy. The rise of social networking, cloud computing, analytics, and mobile computing is expected to boost the demand for data center automation. A significant amount of data created is unstructured, encompassing raw audio, files, or text from a variety of sources, including blogs and social media platforms.
Manual monitoring, remediation, and troubleshooting are too slow to be successful and can put businesses at risk due to the tremendous expansion in data and the speed at which businesses work today. Daily operations can be made autonomous through the process. In an ideal world, the data center provider would have API access to the network, allowing it to communicate with public clouds and migrate data and workloads from one to the other. Software solutions that provide centralized access to most or all data center resources are commonly used to deliver data center automation. This access allows for the automation of servers, storage, networks, and other data center administration duties in the past.
COVID-19 Impact Analysis
The covid-19 pandemic has undoubtedly hastened the digital transformation process. The predominance of remote work will significantly speed up cloud capabilities, even after the pandemic. Companies would look to embark on a new normal, whether it's more IT solutions for an agile workforce, larger data storage to fuel the spread of online commerce, or resilient IT systems to handle any future healthcare emergencies. Many businesses seeking to reduce the risk of disease transmission, whether on-premises or in collocation, have accelerated the deployment of data center automation as a result of COVID-19.
Market Growth Factors
Data Centers Are Being Used In A Variety Of Industries
With the passage of time, networks grow increasingly complex. A single data center can house hundreds of servers. Managing the entire network is thus extremely difficult. Repetitive jobs, on the other hand, can be handled by IT automation. As a result, the IT staff can devote their attention to a more vital responsibility. It will aid in the enhancement of the network's security. Enterprises benefit from data centers because companies have greater storage capacity, many advanced servers, and faster processing capabilities. Data centers are in higher demand than ever before, spanning all industries.
More Savings In Energy
As all firms aim to increase their entire energy efficiency, it makes this, an important factor for the data center automation market. Organizations favor data center automation because it lets them operate with optimum energy efficiency while minimizing their environmental impact. Demand for energy-efficient automated data centers is increasing as a result of the drive to minimize electricity costs. In data centers, storage systems and high-density blade servers provide more computation capacity per watt of energy spent.
Market Restraining Factors
Market Expansion Is Hampered By Data Privacy And Security Issues
The staff in data centers is often in charge of a highly complex environment that includes a diverse mix of programs, databases, and rival platforms. Managing this environment via scripting and platform/application-specific scheduling tools can be time-consuming and inefficient, posing task management issues. These disjointed tools necessitate constant upgrading in the face of change, resulting in higher operating expenses and lower employee productivity. Additionally, there is a data security issue that is impeding market expansion.
Components Outlook
Based on components, the data center automation market is segmented into solutions and services. The solution segment acquired the highest revenue share in the data center automation market in 2021. This is due to the growing need for server automation systems in data centers, which enable businesses or users to deploy, configure, patch, and maintain virtual, physical, and cloud servers rapidly and securely. Server automation ensures that pre-configured policies are followed and that IT productivity is increased by up to a significant rate due to an intelligent and tight loop for automated remediation. These factors would contribute to the growth of the data center automation market.
Operating Environment Outlook
By operating environment, the data center automation market is fragmented into Windows OS, Unix OS, Linux, and another Open-Source OS. The Linux and Other Open Source OS segment garnered a significant revenue share in the data center automation market in 2021. Linus Torvalds' Linux kernel provides the foundation for a set of open-source Unix-like operating systems. The term "Linux distribution" refers to a grouping of Linux packages. Linux is an open-source and free operating system for computers (OS). An operating system is a software that controls the hardware and resources of a computer, such as the CPU, memory, and storage.
End- User Outlook
Based on the end-user, the data center automation market is bifurcated into BFSI, IT and telecom, Retail, Public sector and utilities, Energy, Manufacturing, Healthcare, and Others. The BFSI segment acquired the maximum revenue share in the data center automation market in 2021. It is because BFSI companies are removing errors from human procedures and are focusing on enhancing coordination between IT security and IT operations. Data management can be used to do operations such as customer analysis, fraud detection, and other related duties. The financial sector's intense rivalry puts the burden on banks to be more efficient and responsive. Banks must also increase their resources and infrastructure, as well as improve their operating efficiency.
Regional Outlook
Region-wise, the data center automation market is analyzed across North America, Europe, Asia Pacific, and LAMEA. North America emerged as the leading region in the data center automation market in 2021 with the largest revenue share. In terms of technology breakthroughs and adoption, North America is the most advanced region. It has a well-equipped infrastructure and the financial means to invest in data center automation software. In addition, using data center automation solutions improves efficiency and lowers costs for data center operations including incident and event management.
The major strategies followed by the market participants are Geographical Expansions. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation is the major forerunner in the Data Center Automation Market. Companies such as Oracle Corporation, Cisco Systems, Inc. and Hewlett-Packard Enterprise Company are some of the key innovators in Data Center Automation Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Oracle Corporation, BMC Software, Inc., Fujitsu Limited, Citrix Systems, Inc., Cisco Systems, Inc., Microsoft Corporation, VMware, Inc., Hewlett-Packard Enterprise Company, and Dell Technologies, Inc.
Recent strategies deployed in Data Center Automation Market
Partnerships, Collaborations and Agreements:
2022-Feb: Hewlett Packard joined hands with Ayar Labs, the leader in chip-to-chip optical connectivity. This collaboration aimed to enter a new era of data center innovation by developing silicon photonics solutions based on optical I/O technology. The development of these technologies would aid future needs for artificial intelligence (AI) solutions and high-performance computing (HPC).
2021-Nov: Cisco joined hands with Nevion, a Sony Group Company and award-winning provider of virtualized media production solutions. This collaboration aimed for customers to have full advantage of Cisco’s Data Center Network Manager (DCNM) in conjunction with VideoIPath. VideoIPath integrated with NBM passive means customers can schedule connectivity, make informed routing decisions for media content, load balance, and manage redundancy for media flows. Under this collaboration, Nevion's SDN control software VideoIPath and flagship orchestration assist Cisco Nexus 9000 Non-Blocking Multicast (NBM) in both active and passive mode, and multicast NATing.
2021-Jul: Hewlett Packard came into an agreement with HanmiGlobal, a construction project management firm. This memorandum aimed to promote data center services in South Korea. HanmiGlobal would give project management services, while Hewlett Packard Enterprise would provide the consultations and technologies required to create the centers.
Product Launches and Product Expansions:
2020-Oct: Cisco unveiled new Wide Area Networking (WAN) edge platform. This product launch aimed to aid customers fasten cloud adoption and provide secure and automated connectivity to applications over the data center, cloud, and edge. Through built-in analytics, the new Wide Area Networking (WAN) platform provides higher visibility into network or application problems and drives informed decisions to optimize the experience of users.
Geographical Expansions:
2022-Mar: Microsoft expanded its geographical footprints in India, and Hyderabad to establish the largest data center. This geographical expansion aimed to enter into the growing digital market in Hyderabad where many businesses are incorporating new-age technologies like AI and cloud. The Hyderabad data center region is another inclusion to the present network of three regions in India Mumbai, Pune, and Chennai, which have been operational for more than five years.
2022-Mar: Microsoft expanded its geographical footprints in Southern Finland to build a new data center. This geographical expansion aimed to assist customer requirements for high availability and resilience, the new data center region would feature Azure Availability Zones, unique physical locations equipped with networking, independent power, and cooling for additional tolerance to data center failures. This geographical expansion would join Microsoft’s worldwide network of cloud computing infrastructure of more than 60 regions, over 280,000 kilometers of terrestrial and subsea fiber, and over 190 edge sites.
2022-Jan: Oracle expanded its geographical footprints in South Africa with a new data center. This geographical expansion aimed to give local cloud services over Africa for the first time, joining the likes of Microsoft and Amazon in setting up facilities in the southernmost country on the continent.
2021-Mar: Cisco expanded its geographical footprints in Frankfurt, Germany, to build a new data center. This geographical expansion aimed to deliver customers using its Collaboration platform Webex in the European Union (EU) and Europe, Middle East, Africa, and Russia (EMEAR) region.
2020-Sep: Fujitsu expanded its geographical footprints in Australia with the expansion of its Western Sydney data center, to invest more in data centers and capabilities. This geographical expansion aimed to be part of a wider hyper-scale expansion plan, with further phases at the Western Sydney data center to include another 14,000 square meters and 50+ megawatts of increased power capacity, delivering an integrated total capacity of 90 megawatts at the Western Sydney data center campus.
2020-Jun: Oracle expanded its geographical footprints in Hyderabad with a second cloud region. This geographical expansion aimed to operate 36 second-generation Cloud regions. In addition, the expansion would enable the SMB customers to enhance technology and the center which would assist Indian firms in better addressing disaster recovery and compliance.
Scope of the Study
Market Segments covered in the Report:
By Component
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