That the pandemic has caused disruptions in almost every business worldwide is a given, but the good news is that the digital economy is still as competitive as ever. Projections for the data center sector — among the industries at the forefront of digital transformation – are looking brighter than ever.
Leading research and advisory firm Gartner predicts that end-user spending on global data center infrastructure is projected to climb to $200 billion in 2021, up 6 percent from 2020.
Much of the reduced demand in 2020 is expected to return in 2021 when staff can physically be onsite,” a senior staffer at Gartner has stated in a recent interview. “For now, all data center infrastructure segments will be subject to cost-containment measures and enterprise buyers are expected to extend life cycles of installed equipment.” The researchers believe the data center infrastructure market will continue to grow year on year through 2024.
Public cloud providers like AWS, Microsoft and Google are in fact continuing to spend billions on data center hardware and software.
So, what are some of the predictions for 2021?
1. The cloud revolution will gather even more pace
By the end of 2021, 80% of enterprises are likely to either shift or be in the process of shifting to cloud-centric infrastructure and applications at a speed that’s twice that prior to the pandemic. According to a study by tech giant Cisco, 94% of the worldwide workloads will be controlled by cloud data centers.
Therefore the need to deliver infrastructure, application and data resources will spur adoption of new, cloud-centric network solutions that enable faster responses to business needs while also enabling operational flexibility.
2. Hyper-scale data centers will see greater demand
In the digital age, companies need their IT frameworks to deliver services at a very fast pace. Therefore the need for IT infrastructure that can scale up fast is crucial at this point, which in turn will prompt greater demand for hyper-scale data centers, which can quickly react to progressively heavy demand.
A recent Markets&Markets report noted that the hyper-scale server data center market will show a growth rate of 26.32%.
3. Intelligent digital workspaces will gain in popularity
It is predicted that in the next three years, more than three-quarters of the Global 2000 (G2000) list of companies will commit to a hybrid structure, meaning a collaborative, informed, and productive workforce that can function together separately and in real-time.
The need is now to design next-generation digital platforms with flexible capabilities to create and deliver new products, services, and experiences.
4. Autonomy of IT operations will increase
By 2023, the cloud ecosystem is likely to emerge as the underlying platform for all IT and business automation initiatives everywhere. Reports are that by 2024, there will be a paradigm shift in 80% of the world’s enterprises in terms of relationships with suppliers, providers. The focal point will be more efficient deployment of resources and autonomous IT operations.
The transition calls for a re-evaluation of technology, service, and service provider relationships. Data centers are poised to lead the way.
Hardy Racks offers cost-effective solutions for the data centers of tomorrow. Get in touch today for a consultation to see how we could add value to your data center or server room investments.