Data center infrastructure management (DCIM) market has registered a major impetus in the last half a decade or so, pertaining to the paradigm shift that digitization has brought about in various industrial sectors. Mobile devices, social networks, big data and cloud technologies have now come to create what has been termed as “Nexus of Forces” and are rapidly changing customer behavior, expectations and needs, creating new opportunities for various businesses. In fact, old business models are being vastly transformed due to a revolution created in the social and commercial sectors by these forces. This has created the demand for faster, flexible models from the technology space, gradually laying ground for DCIM industry development.
U.S. data center infrastructure management (DCIM) market size, by solution, 2017 & 2024 (USD Million)
The robust proliferation of the Internet of Things is adding momentum to the current digitization movement, leading to increased concerns among IT personnel about the security and efficiency of IT based services. Accurate planning of IT and physical infrastructure has become inevitable to maintain transparency and facilitate an enormous upsurge in the demand for data and services. This rapid slew of requirements has led to DCIM market receiving commendable traction in recent times. Indeed, data center infrastructure management industry size was pegged at USD 800 million in 2017 and is expected to grow at an appreciable pace in the years ahead.
An overview of DCIM industry from the end use perspective
The end-use landscape of data center infrastructure management industry primarily spans the IT & telecom, healthcare, and BFSI sectors. In fact, the IT and telecom industry has emerged as the largest consumer of DCIM as it is characterized by the rapid adoption of evolving cloud technologies and big data. The IT industry is also burdened with the responsibility to handle and store large amounts of data. In this regard, DCIM facilitates optimal planning and process automation that is often a challenge for network managers and operators, thereby helping to augment DCIM market outlook from the IT & telecom sector.
The banking and financial services have also witnessed massive changes due to the advent of digital technologies and social media. It is imperative for companies to implement digital strategies in marketing sales and customer service to stay ahead of the competition. In order to stay updated with regards to mobility, analytics, cloud solutions, and social media, the BFSI sector has turned to deploy data centers, thereby emerging as a significant avenue for DCIM industry. The adoption of data management has helped financial institutions provide customers with value added services and an enriched banking experience which is not only safe but also flexible and cost effective.
U.S. to dominate DCIM market trends, APAC close behind
The U.S. has for long been a strong revenue ground for DCIM industry due to the advanced broadband infrastructure in the country combined with the large adoption of data centers across various sectors in the nation. With the country being a hub for technology development and encompassing a populace that earnestly embraces novel tech advancements, U.S. is expected to dominate DCIM market over 2018-2024. However, with increased focus on the promotion of Green IT, the U.S. government launched the Federal Data Center Consolidation Initiative (FDCCI) aimed at reducing hardware, software and operational costs. In addition, the move focused toward the shifting of IT investment to computing platforms that are more efficient. Despite a projected dominant growth graph, U.S DCIM industry may slow down a tad bit owing to the fact that the effort taken to reduce energy and real estate footprint has caused the closure of data centers.
On the other end of the spectrum are countries in Asia Pacific that are encouraging the widespread growth of the regional DCIM industry through funding data centers. For instance, the Ministry of Industry and Information Technology of China is aiming at the extension of connectivity across the country, on the grounds of which it has commenced the issuance of Internet data center licenses to meet the increased demand of data centers in the country.
High cost of developing software and the need of specialized staff may set out to be hindrances for the steady growth of the DCIM industry. But with the availability of highly trained yet cheap labor, especially in the Asia Pacific region, such impediments for this vertical can be overcome. As DCIM technologies will continue to mature, the return of investment on such products can offset the high cost of deployment entirely. Above all, the sheer necessity to plan the present and future data center capacities with a clear picture of how much space, power and cooling is required have made DCIM an important part of the expanding electronics sector. As the demand for these products from various domains continues to surge and a level of cost-effectiveness is brought about in the production, DCIM market share will grow at a CAGR of 20% over 2018-2024.