The market for uninterruptible power supplies has grown for the first time in four years.
On 7 August, analytical company IHS Markit shared the result of another study: after four years of decline, the market for uninterruptible power supplies (UPS) returned to growth in 2016 and approached an estimate of $ 7.4 billion. Although the positive trend was 1.6%, analysts predict further increase in market volume in 2017 and 2018. This raises the question of the impact of cloud services on the hardware market.
/ frame from video about our SDN + data center ( more about 1cloud infrastructure)
According to The Register, the growth of the cloud computing services market has created favorable conditions for the UPS market. The demand for services of larger hosting companies dictates the need for data center operators to provide their data centers with equipment with 99% uptime, which is possible only if equipped with modern UPSs.
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According to the IHS Markit, what can be observed today is the result of the transition from corporate data centers to cloud and collocation services. Today, about 40% of the capacity of all data centers are based on the platforms of 145 leading providers. The company believes that their share in the total volume will continue to grow, creating favorable conditions for the UPS market, which actually serves this need.
According to research company Global Industry Analysts, by 2022 the UPS market should reach $ 13.7 billion, that is, almost double the current volume. The growth point is considered to be a shortage of backup power in the age of cloud services. If this forecast comes true, the pace will be a record.
Anyway, the transfer of a significant part of computing to the clouds changes the market. For example, in 2015, Microsoft thought about abandoning the very idea of ​​central autonomous UPSs for data centers in favor of mini-UPSs for reasons of space and energy efficiency. The data center's Stack Data Network (SDN), where the 1cloud servers are located, also uses small and compact UPSs. Hitec Power Protection BV
Industry requests for more efficient and less cumbersome solutions can completely change product lines in the non-industrial segment of UPS production. Such shifts in the industry, such as the desire to save space and energy, can seriously affect the market situation.
A new report from Morgan Stanley points out that the hardware industry will survive a cut in spending this year as IT priorities shift to cloud computing and artificial intelligence. A survey of company executives showed that by 2020, about half of the corporate working capacity will be moved to the clouds.
In this regard, the global international expenditures on cloud services and infrastructure will reach $ 122.5 billion this year, according to IDC, which is 24.4% more compared to 2016.
In 2013, the Baird Equity Research Technology report described the future of hardware as follows: “for every dollar spent on [Amazon Web Services], there will be at least 3-4 dollars not spent on traditional information technology [..] In other words, getting AWS revenue of $ 10 billion by 2016 means that the traditional IT market has lost at least 30-40 billion dollars. "
The same report notes that the challenge of time is forcing companies such as IBM, Hewlett-Packard, Microsoft, to change their priorities in the release of products from physical to cloud, which ultimately affects their traditional sources of income. As time has shown, the predictions are partly correct.
Thus, according to Nasdaq estimates , cloud services accounted for 22% of IBM's total revenue for 2016, while in the server sales segment, revenue fell. And, if in this respect the competitive environment is the primary cause, then in the case of a 10% drop in sales of storage systems, the “threat” comes precisely from mass migration to the clouds.
MarketRealist analysts believe that the hardware market will continue to change under pressure from cloud computing. Consolidation of major equipment suppliers is expected, as well as changes in business models. For example, from the production of traditional storage devices, companies will need to take a step towards software-defined storage.
The peculiarity of the market, one way or another, is connected with its orientation to several large providers. Since the development of public cloud infrastructure is ahead of the growth of private clouds, it is these players that dictate the rules. According to the Synergy Research Group, in 2016, Cisco, HP Enterprise and Dell EMC were the leading providers of cloud infrastructure, but their revenues did not grow, as some large data centers prefer product manufacturers according to the original project without a recognizable brand.
This situation demonstrates the main trend of the market - the growth of sales dependence on requests of the largest companies, which essentially act as intermediaries between the end users of the infrastructure and manufacturers. Considering the Forrester forecast , according to which the growth of infrastructure as a service in 2017 will be 38%, the dependence of equipment manufacturers on cloud service providers will only grow, and such fluctuations as an increase in UPS sales will accompany this growth.
PS A few more materials about virtualization and infrastructure from our blog:
/ frame from video about our SDN + data center ( more about 1cloud infrastructure)According to The Register, the growth of the cloud computing services market has created favorable conditions for the UPS market. The demand for services of larger hosting companies dictates the need for data center operators to provide their data centers with equipment with 99% uptime, which is possible only if equipped with modern UPSs.
')
According to the IHS Markit, what can be observed today is the result of the transition from corporate data centers to cloud and collocation services. Today, about 40% of the capacity of all data centers are based on the platforms of 145 leading providers. The company believes that their share in the total volume will continue to grow, creating favorable conditions for the UPS market, which actually serves this need.
According to research company Global Industry Analysts, by 2022 the UPS market should reach $ 13.7 billion, that is, almost double the current volume. The growth point is considered to be a shortage of backup power in the age of cloud services. If this forecast comes true, the pace will be a record.
Anyway, the transfer of a significant part of computing to the clouds changes the market. For example, in 2015, Microsoft thought about abandoning the very idea of ​​central autonomous UPSs for data centers in favor of mini-UPSs for reasons of space and energy efficiency. The data center's Stack Data Network (SDN), where the 1cloud servers are located, also uses small and compact UPSs. Hitec Power Protection BV
Industry requests for more efficient and less cumbersome solutions can completely change product lines in the non-industrial segment of UPS production. Such shifts in the industry, such as the desire to save space and energy, can seriously affect the market situation.
Clouds are changing the hardware market
A new report from Morgan Stanley points out that the hardware industry will survive a cut in spending this year as IT priorities shift to cloud computing and artificial intelligence. A survey of company executives showed that by 2020, about half of the corporate working capacity will be moved to the clouds.
In this regard, the global international expenditures on cloud services and infrastructure will reach $ 122.5 billion this year, according to IDC, which is 24.4% more compared to 2016.
In 2013, the Baird Equity Research Technology report described the future of hardware as follows: “for every dollar spent on [Amazon Web Services], there will be at least 3-4 dollars not spent on traditional information technology [..] In other words, getting AWS revenue of $ 10 billion by 2016 means that the traditional IT market has lost at least 30-40 billion dollars. "
The same report notes that the challenge of time is forcing companies such as IBM, Hewlett-Packard, Microsoft, to change their priorities in the release of products from physical to cloud, which ultimately affects their traditional sources of income. As time has shown, the predictions are partly correct.
Thus, according to Nasdaq estimates , cloud services accounted for 22% of IBM's total revenue for 2016, while in the server sales segment, revenue fell. And, if in this respect the competitive environment is the primary cause, then in the case of a 10% drop in sales of storage systems, the “threat” comes precisely from mass migration to the clouds.
MarketRealist analysts believe that the hardware market will continue to change under pressure from cloud computing. Consolidation of major equipment suppliers is expected, as well as changes in business models. For example, from the production of traditional storage devices, companies will need to take a step towards software-defined storage.
The peculiarity of the market, one way or another, is connected with its orientation to several large providers. Since the development of public cloud infrastructure is ahead of the growth of private clouds, it is these players that dictate the rules. According to the Synergy Research Group, in 2016, Cisco, HP Enterprise and Dell EMC were the leading providers of cloud infrastructure, but their revenues did not grow, as some large data centers prefer product manufacturers according to the original project without a recognizable brand.
This situation demonstrates the main trend of the market - the growth of sales dependence on requests of the largest companies, which essentially act as intermediaries between the end users of the infrastructure and manufacturers. Considering the Forrester forecast , according to which the growth of infrastructure as a service in 2017 will be 38%, the dependence of equipment manufacturers on cloud service providers will only grow, and such fluctuations as an increase in UPS sales will accompany this growth.
PS A few more materials about virtualization and infrastructure from our blog:
Source: https://habr.com/ru/post/335558/
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