Data Center Automation Market - Growth, Trends, Covid-19 Impact, And Forecasts (2021 - 2026)

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The data center team receives extra support from the opportunities generated by the data center automation, which is the current stage of a deployment strategy for the data center automation in the market.

- The boom in social networking, analytics, cloud computing, and mobile computing is projected to positively impact the need for automation in data centers. Approximately 80% of the data generated is unstructured, containing raw audio, file, or text from various sources, such as blogs and social media platforms.

- This is Big Data, which needs to be concise to be analyzed, however, manually handling an enormous amount of data, would lead to a high probability of error. Thus, automation plays a vital role in data centers by performing looked-for tasks, which is expected to drive the market growth during the forecast period.

- The market has several opportunities as the company that owns and operates a data center, hires
third-parties to take over data center management, while they keep as many processes in-house as possible. As an alternative to managed services, automation can eliminate errors, ...
... save time, and optimize the processes for better cost-savings

- Several end-user industries have to comply with multiple regulations, such as Sarbanes-Oxley Act, Payment Card Industry Data Security Standard, the Healthcare Insurance Portability and Accountability Act, and other industry standards. These often need automated tools to avoid costly consequences. One data breach or negative audit can cost an organization millions of dollars in remediation and motivates the data center operators to opt for automation.

Key Market Trends

Healthcare Industry to Account for a Major Share in the Market

- Digitization has significantly increased the volume and speed of healthcare data generation. As much as 80% of data generated by the healthcare industry is likely to be in the cloud by 2020. According to Oxford Economics, the healthcare organizations are expected to invest in Big Data and analytics (76%), cloud technology (65%), mobile (50%), and security (48%) in the next two years. As digital transformation becomes a mainstream technology in the healthcare sector, the scope for automation is expected to increase substantially.

- The increasing use of online Electronic Health Records (EHRs) and e-prescriptions is further increasing the storage demands among healthcare providers, leading to investing in data centers. For instance, in June 2018, China's Guizhou province launched the first of the five healthcare data centers, with an aim to set up a national healthcare data network. Also, in the United States, the growth in e-prescriptions along with EHRs is contributing to the market growth.

- Moreover, the regulatory compliances, like HIPPA and European data privacy acts, make it even more complicated to handle, considering the increasing reliance on IT and storage hardware. With automation healthcare, IT teams can be compliant with network policies as the human errors that lead to compliance gap are avoided.

North America to Lead the Market

- The expansion of mobile broadband, as well as the increasing adoption of Big Data analytics and cloud computing are driving the demand for new data center infrastructures. North America, comprising of a considerable amount of data centers in 2017 (almost 600 data center operators) and a large number of enterprises switching from hardware to software-based services is estimated to be a significant market for data center automation.

- As of 2017, the United States accounted for almost 45% of the global cloud and internet data centers, according to CNNIC. The data centers in the region are highly being regulated by the government bodies.

- Initiatives, like the Data Center Optimization Initiative (DCOI) by the federal government, aim to encourage the data center operators to consolidate the inefficient infrastructure, optimize existing facilities, achieve cost savings, and transition to a more efficient infrastructure. The intention of the initiative is to reduce the costs of physical data centers by a minimum of 25% by the end of the fiscal year 2018.

- This is projected to fuel the utilization of data centers and the need for automation, thus, propelling the market growth in the region.

Competitive Landscape

The data center automation market is highly fragmented due to the presence of a large number of players who offer the service. Some major players who offer cloud and AI service also offer data automation as a bundled service which is another reason for the fragmentation of the market. Some key companies in the firm include Oracle, Fujitsu, HP, Microsoft, among others. Some key recent developments in the market include:

- March 2018 - Du, a UAE-based telecom company cooperated with Cisco Systems Inc. to build a future proof network, which is supposed to enable the transformation of the telco as a digital service provider.

- February 2018 - Oracle Corporation invested in over 10 data centers across the globe, with an aim to expand its global footprint and gain a high market share.

- February 2018 - Dell EMC announced new servers to optimize software-defined environment and computing which is expected to increase the product portfolio.

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