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Rising Demand for Colocation Services to Bolster Adoption of Hyperscale Data Centers Worldwide

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Published on : Apr 10, 2017

Albany, New York, April 10, 2017: The report offers a detailed and comprehensive insight into how hyperscale data centers will help end users overcome various data bottlenecks. The research study provides an analysis of the current market status, key drivers and restraints, prominent technological advances, various end-use segments, and competitive landscape. 

The report offers an incisive analysis of major technological shifts that have led to the emergence of hyperscale data centers. Recent automation trends and the advent of various cloud computing models that are likely to impact the technological landscape are highlighted. The study takes a closer look at the key factors expected to boost the adoption of hybrid cloud technology amongst enterprises in major regions. 

The research analysis takes a cursory look at the key constraints that developers of cloud 2.0 data centers need to be aware of and analyzes the possible ramifications in future. In addition, the various security concerns voiced by end users and their influence on the adoption of key cloud models, such as SaaS and IaaS, have been adequately discussed in the report. Furthermore, key investment strategies of big technology companies in constructing cloud 2.0 mega data centers are evaluated in the analysis. 

The major factor that has inherently led to the rapid evolution of hyperscale data centers in order to minimize data bottlenecks is the myriad benefits offered by various cloud computing models. Other key factors that are instrumental in inspiring the many developments in the market are constant efforts towards consolidation of data centers and the rise in colocation services worldwide. The consolidation initiative is motivated by considerable cost savings enjoyed by businesses shifting to cloud 2.0 data centers. This is attributed to the benefit of economies of scale—to the tune of 50–100%—offered by various colocation service providers and system integrators.

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Over the past few years, cloud data centers have already soared in popularity and are gaining increasing adoption among enterprises. Constant advancement in cloud computing technology and the emergence of numerous profitable models have significantly improved their computing capabilities. As a result of these developments, the cloud 2.0 automated process computing has emerged, which can be used to manage enormous workloads with heightened data security, thereby positively impacting the market. The factors that make cloud 2.0 different from earlier models are the presence of single chip ASIC server and a network based on a matching ASIC switch. The significant uptake of hybrid data centers is stimulated by the inherent limitation of companies adopting a one-size-fits-all policy for all their data needs. Subsequently, this has triggered recent strategic developments in the market. 

The latency issue that comes with moving volumes of enterprise data across public and private clouds is a key factor likely to hinder the adoption of cloud 2.0 data computing services. Nevertheless, big technology providers are proactively focused on developing a variety of backup solutions. This strategy is anticipated to reduce the latency of data, decrease the connectivity cost, and enhance the level of control for various end users, opening new revenues streams in the market. 

Major players operating in this market include Amazon, Microsoft, Google, Facebook, IBM, and NeoPhotonics Corporation. 

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