Insights on the Data Center Interconnect Global Market to 2027 - Cloud-Based Solutions are Becoming More Popular

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May 19, 2022, 08:00 ET

DUBLIN, May 19, 2022 /PRNewswire/ -- The "Global Data Center Interconnect Market Size, Share & Industry Trends Analysis Report By Type, By End User, By Application, By Regional Outlook and Forecast, 2021-2027" report has been added to ResearchAndMarkets.com's offering.

The Global Data Center Interconnect Market size is expected to reach $18.3 billion by 2027, rising at a market growth of 13.9% CAGR during the forecast period.

Data centers interconnect creates a network of two or more data centers with the aim of achieving business or IT goals. They can collaborate; pass tasks between one another, and share information and resources due to this interconnectedness. Data center interconnection allows customers to connect to a variety of internet service providers, which is critical if they are in a different area. Businesses can use this to establish a strong presence both domestically and internationally, allowing them to extend their consumer base and operations. To facilitate simple data, resource sharing, and disaster recovery needs, some major enterprises utilize data center interconnect to connect their own data centers with their extended infrastructure, while others connect to partners, cloud providers, or data center operators.

The Data Center Interconnect (DCI) technology uses high-speed packet-optical communication to connect two or more data centers over short, medium, or long distances. DCI is used by some large enterprises to connect their own data centers inside their extended business infrastructures, while others connect to stakeholders to make data and resource sharing easier or to handle disaster recovery.

The requirement to connect data center assets rapidly, reliably, and cost-effectively is expanding due to the explosion of data and the rise of technologies such as AI and High-Performance Computing (HPC). Data center providers are prioritizing factors such as throughput, latency, streamlined operations and maintenance, intelligence, and security. This is because they can increase inter-data center bandwidth, lower latency, and eliminate packet loss.

COVID-19 Impact Analysis

In some areas, data center construction came to a halt, but this was not the case in other regions. For the interest of worker safety, construction projects in some parts of Europe have been entirely halted. In addition, pre-construction activities like permitting have been put on hold for the time being. In Southeast Asia, the impact was mixed. Singapore had imposed a temporary building halt, but Thailand was allowing projects to go, though with shortened workdays to allow workers to return home during curfews. Project management, service providers, and suppliers were all monitored for delivery capacity within the scope of construction. This allowed bottlenecks to be identified early and alternate solutions to be chosen.

The demand for colocation data center space appears to be high in the current scenario. Cloud adoption is predicted to be highest in industries such as over-the-top, video streaming, and gaming. Demand for educational access to cloud platforms has also increased dramatically.

Market Growth Factors:

Cloud-based solutions are becoming more popular

The app architecture became so simple with the advent of web-based applications that several apps could be readily hosted on a shared server. This was accomplished without sacrificing considerable performance. However, as the number of users and the complexity of apps increased, shared hosting became obsolete. Businesses moved their apps to dedicated VPS hosting options, which were unsuitable for long periods of time and began to fail users. Owners of small businesses had little choice but to buy an entire dedicated server. The migration of the programme to the new VPS server was the first challenge they faced.

On the other hand, Businesses quickly discovered that the server's exorbitant price was not justified. Mostly, a large amount of the server's resources was not useful. The dedicated server proved to be a bad business decision because firms were paying for the full server regardless of resource consumption.

Rise in need for disaster recovery and business continuity

Users of data centers all throughout the world are concerned about disaster recovery. Disasters such as earthquakes, security assaults, fire outages, and other unanticipated events can all affect IT infrastructure facilities. Proper disaster recovery strategies must be in place for businesses to avoid suffering significant losses as a result of such calamities. Data center interconnection facilities are situated away from users' premises, making them less vulnerable to disasters. These facilities can be controlled remotely, enhancing their disaster recovery capabilities.

As a result, interconnection facilities are expected to become a popular backup and recovery option for enterprises since they allow them to store critical data in a remote place. Hence, the presence of a durable and secure DCI solution can ensure business continuity.

Market Restraining Factors

Capacity constraints

Applications use data centers to store and transport data. The size of information entering or departing a data center can vary dramatically, ranging from hundreds of Gigabits to Terabits. Data center operators face major capacity planning and network engineering issues as video, social media, and distributed application traffic explodes. New types of workloads, such as analytics, machine learning, and the Internet of Things, are putting major capacity constraints on data centers.

As a result, the networking equipment used to connect data centers must be capable of providing dependable, high-capacity connections that can be scaled to meet data center traffic's massive expansion requirements. In addition, many companies are not willing to update their existing equipment which may bring friction in connected ecosystem. Moreover, upgrading equipment requires high financial costs which are not feasible for some companies.

Key Topics Covered:

Chapter 1. Market Scope & Methodology

Chapter 2. Market Overview
2.1 Introduction
2.1.1 Overview
2.1.1.1 Market Composition and Scenario
2.2 Key Factors Impacting the Market
2.2.1 Market Drivers
2.2.2 Market Restraints

Chapter 3. Competition Analysis - Global
3.1 KBV Cardinal Matrix
3.2 Recent Industry Wide Strategic Developments
3.2.1 Partnerships, Collaborations and Agreements
3.2.2 Product Launches and Product Expansions
3.2.3 Acquisition and Mergers
3.3 Top Winning Strategies
3.3.1 Key Leading Strategies: Percentage Distribution (2017-2021)
3.3.2 Key Strategic Move: (Product Launches and Product Expansions : 2018, Mar - 2021, Sep) Leading Players

Chapter 4. Global Data Center Interconnect Market by Type
4.1 Global Products Market by Region
4.2 Global Data Center Interconnect Market by Product Type
4.2.1 Global Packet-Switching Networking Market by Region
4.2.2 Global Optical DCI Market by Region
4.3 Global Software Market by Region
4.4 Global Services Market by Region

Chapter 5. Global Data Center Interconnect Market by End-User
5.1 Global Internet Content Providers/ Carrier-Neutral Providers Market by Region
5.2 Global Communication Service Providers Market by Region
5.3 Global Enterprises Market by Region
5.4 Global Government Market by Region

Chapter 6. Global Data Center Interconnect Market by Application
6.1 Global Real-time Disaster Recovery & Business Continuity Market by Region
6.2 Global Shared Data & Resources/Server High-availability Clusters (Geoclustering) Market by Region
6.3 Global Workload (VM) & Data (Storage) Mobility Market by Region

Chapter 7. Global Data Center Interconnect Market by Region

Chapter 8. Company Profiles
8.1 Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
8.1.1 Company Overview
8.1.2 Financial Analysis
8.1.3 Segmental and Regional Analysis
8.1.4 Research & Development Expense
8.1.5 Recent Strategies and Developments:
8.1.5.1 Product Launches and Expansions:
8.2 Cisco Systems, Inc.
8.2.1 Company Overview
8.2.2 Financial Analysis
8.2.3 Regional Analysis
8.2.4 Research & Development Expense
8.2.5 Recent Strategies and Developments:
8.2.5.1 Acquisitions and Mergers:
8.3 Ciena Corporation
8.3.1 Company Overview
8.3.2 Financial Analysis
8.3.3 Segmental and Regional Analysis
8.3.4 Research & Development Expense
8.3.5 Recent Strategies and Developments:
8.3.5.1 Partnerships, Collaborations, and Agreements:
8.3.5.2 Product Launches and Expansions:
8.4 Infinera Corporation
8.4.1 Company Overview
8.4.2 Financial Analysis
8.4.3 Regional Analysis
8.4.4 Research & Development Expenses
8.4.5 Recent Strategies and Developments:
8.4.5.1 Acquisitions and Mergers:
8.4.5.2 Product Launches and Expansions
8.5 ADVA Optical Networking SE
8.5.1 Company Overview
8.5.2 Financial Analysis
8.5.3 Regional Analysis
8.5.4 Research & Development Expenses
8.5.5 Recent Strategies and Developments:
8.5.5.1 Acquisitions and Mergers:
8.5.5.2 Product Launches and Expansions
8.6 Nokia Corporation
8.6.1 Company Overview
8.6.2 Financial Analysis
8.6.3 Segmental and Regional Analysis
8.6.4 Research & Development Expense
8.6.5 Recent Strategies and Developments:
8.6.5.1 Partnerships, Collaborations, and Agreements:
8.6.5.2 Product Launches and Expansions
8.7 Juniper Networks, Inc.
8.7.1 Company Overview
8.7.2 Financial Analysis
8.7.3 Regional Analysis
8.7.4 Research & Development Expenses
8.8 Fujitsu Limited
8.8.1 Company Overview
8.8.2 Financial Analysis
8.8.3 Segmental and Regional Analysis
8.8.4 Research & Development Expenses
8.8.5 Recent Strategies and Developments:
8.8.5.1 Partnerships, Collaborations, and Agreements:
8.8.5.2 Product Launches and Expansions:
8.8.6 SWOT Analysis
8.9 Colt Technology Services Group Limited
8.9.1 Company Overview
8.9.2 Recent Strategies and Developments:
8.9.2.1 Partnerships, Collaborations, and Agreements:
8.9.2.2 Product Launches and Expansions:
8.10. Extreme Networks, Inc.
8.10.1 Company Overview
8.10.2 Financial Analysis
8.10.3 Regional Analysis
8.10.4 Research & Development Expense

For more information about this report visit https://www.researchandmarkets.com/r/9n75z4