Data Center Interconnect Market Is Expected To Grow At a CAGR Of 13.6% FROM 2018-2027.


According to Stratistics MRC, the Global Data Center Interconnect Market is accounted for $6.29 billion in 2018 and is expected to reach $19.81 billion by 2027 growing at a CAGR of 13.6% during the forecast period. Growing in intra-data center traffic owing to cloud-based entertainment and over-the-top (ott) services are the major factors propelling the market growth. However, huge initial investment requirement are hampering the market growth.

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Data center interconnect is a method used to attach and allow networking among two or more dissimilar data centers. Data center interconnect is typically done in an enterprise environment to attain IT and business objectives. One of the benefits of this method is it permits unlike data centers to share resources, pass workloads, and work mutually. Such a technique can also be utilized to pool resources of numerous data centers to meet scalability goals.

Opportunity:  Increasing technological advancement would ample the opportunities for the market growth.
Companies have recently been focusing on addressing the limitation faced by data centers that operate on Cloud computing and Big Data fast, such as traffic migration and bandwidth malfunctioning. Huawei places a dominant reputation on next-generation networks and continuously accelerates technological origination. To grip traffic evolution among data centers that went outside their provisioning, they are using 600G technology to reduce the cost per bit and build a more inexpensive DCI network. An evolution strategy involving expanding operations within the North American region can help them drive future growth.

Driver: Migration toward the cloud is driving the market growth.
Cloud migration is the development of moving digital business operations into the cloud. Cloud migration is sort of like a physical move, excluding it comprises moving data, applications, and IT processes from some data centers to other data centers, as a replacement for packing up and moving physical goods. Much like a move from a smaller office to a larger one, cloud migration requires quite a lot of preparation and advance work, but frequently it ends up being worth the effort, resulting in charge savings and greater flexibility.

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Depending on application, Shared Data and Resources/Server High-Availability Clusters (Geoclustering) segment is expected to grow at the significant market share during the forecast period. Owing to the benefit it provides for the protection of workloads across globally distributed data centers. Geo clustering detects hardware/software faults and instantly provides right to use to the application on another system without requiring administrative intervention.

North America region is anticipated to hold considerable market share during the forecast period:
By geography, the North America region is anticipated to hold considerable market share during the forecast period. North America is expected to grow as a result of the growing usage of data centers across various business verticals and due to its early adoption of the latest technologies. Furthermore, the growth rate is driven by countries like U.S. wherein data centers manage the high volume of data generated fuelling the market growth.

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Some of the key players profiled in the Data Center Interconnect Market are ADVA Optical Networking, Alcatel-Lucent SA (Nokia), BTI Systems Inc, Ciena Corp, Cisco, Cologix Inc , Colt Technologies Services Group Ltd, Extreme Networks, Fujitsu, Huawei Technologies Co. Ltd, Infinera Corp, Telx and ZTE Corp. 

Cisco: In May 2020, Cisco acquired Thousand Eyes to make deeper push into software. This was the first acquisition Cisco has finished totally online, which was the only real way to handle transaction given the stay-at-home necessities in place since March. It was tough to sign a deal like this without ever walking into the same room to do technology diligence and business diligence.

Huawei Technologies Co. Ltd: In June 2019, Huawei completed the acquisition of a Russian security firm. It is reported that the acquisition cost and Huawei is mostly interested in the company’s technical patents as well as its R&D arsenal in face recognition systems. (Huawei Digital Technologies) will happen to the intellectual property owners of Vokord’s face recognition and device patents.

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