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China data centers market: 19.17% CAGR expected between 2012-2016
Data Centers Market in China 2012-2016 - a new market research report on 2014-04-29 04:05:02
The China Data Center market is to grow at a CAGR of 19.17 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increasing deployment of data centers. The Data Center market in China has also been witnessing increased network virtualization. However, the requirement for huge capital investments could pose a challenge to the growth of this market.
In recent years, there has been an increase in virtualized networking environments in data centers. Additionally, customers have wanted to tune their networks, but they have been limited by the constraints in network management tools. Virtualization has increased the deployment of multi-core and blade server platforms, resulting in consolidation of the storage environment. Virtual networks can be programmed and bonded to workloads, and they are scalable to demand. Moreover, they do not require physical network reconfiguration. Since they are not bound by physical boundaries, network resources can be efficiently utilized across noncontiguous clusters. With traditional networks it has been difficult to manage and integrate the systems they support and the services delivered by them. Earlier attempts to bridge this gap further increased the complexity of network configuration in terms of understanding application status and requirements, observing network traffic, and then replying according to the configured policy.
Among the numerous growth drivers in the Data Center market in China, the increasing deployment of data centers is the major growth driver. Enterprises are increasingly deploying data centers to reduce the cost of infrastructure, technology, and human resources. Moreover, data centers are helpful in disaster recovery and they improve network infrastructure security.
One of the main challenges is the huge capital investment required to deploy a data center and also to upgrade a traditional data center. Despite the relatively smaller breakeven time period for data centers, which is a positive benefit of adoption, the high initial investment needed is hindering the adoption of data center technology in various developing regions in China.
The key vendors dominating this space include Dell Inc., Hewlett-Packard Co., Huawei Technologies Co. Ltd., IBM Corp., and Schneider Electric SA. The other vendors mentioned in this report are Cisco Systems Inc., Fujitsu Corp., Hitachi Ltd., and Oracle Inc.
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