Cloud Adoption Supporting Data Center Growth

Companies are increasingly going cloud-bound and, according to Infonetics Research, this is going to propel data center growth forward. According to a recent report from the industry analyst, worldwide revenue for data center network equipment – including data center Ethernet switches, Application Delivery Controllers (ACDs) and wide area network (WAN) optimization appliances – dropped by 11 percent in the first quarter of 2013, down to $2.3 billion. This decline in growth is representative of the continued growth and adoption rate of cloud services.

Infonetics further reports that companies increasingly transitioning their physical hardware usage to cloud services via data center operators.

 “While the near term outlook remains positive, ultimately we think the market is headed for a peak, as data center operators improve infrastructure utilization, and adoption of cloud services moves hardware consumption from enterprises to large-scale data center operators,” explained Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research, in a statement.

It’s no wonder why businesses are eager to make the cloud move, especially considering IDG’s recent cloud computing survey, which interviewed over 1,300 respondents including IT executives, mid-level IT and standard IT professionals. The survey results revealed that:

  • 49 percent of exec-level management see cloud computing as “transformational” to their business strategies.
  • 40 percent are currently pushing IT to “investigate the potential of cloud computing” for their business.
  • 43 percent say the cloud can better enable business continuity, while 40 percent say the cloud offers greater flexibility to react to changing market conditions, and 39 percent say it provides speedier deployment.

Is your contact center part of this cloud movement?

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