Hyper-Converged Infrastructure (HCI) Adoption Thrives in the Post-COVID Era: Cloud Shift, Subscription Models, and Edge Computing Trends Shape the Future of the Market - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Global Hyper-Converged Infrastructure Market (by Component, Application, End-User, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)" report has been added to ResearchAndMarkets.com's offering.

The global hyper-converged infrastructure (HCI) market is on an upward trajectory, with an anticipated value of $14.60 billion by 2023, reflecting a robust Compound Annual Growth Rate (CAGR) of 27.50% during the forecast period.

HCI is revolutionizing the IT landscape by integrating virtualized elements like storage, computing, and networking into a single, scalable system, simplifying data center operations and meeting the needs of modern businesses.

Segmentation Overview:

The report segments the global HCI market based on various parameters:

By Component:

• Hardware
• Software

Hardware holds the largest market share as organizations increasingly adopt HCI to streamline both hardware and virtualized environments. The software segment is expected to grow at the highest CAGR, driven by the need for software-defined solutions.

By Application:

• Data Center Consolidation
• Backup Recovery or Disaster Recovery
• Critical Applications Virtualization
• Virtualization Desktop Infrastructure
• Remote Office or Branch Office
• Others

Data center consolidation leads the market, while the backup recovery or disaster recovery segment is anticipated to grow significantly due to the rising number of data breaches.

By End-User:

• BFSI (Banking, Financial Services, and Insurance)
• IT and Telecom
• Manufacturing
• Healthcare
• Government
• Energy & Utilities
• Education
• Others

The BFSI sector holds the highest market share due to HCI's ability to simplify infrastructure management, ensure scalability, and support critical workloads and disaster recovery. Adoption of HCI in BFSI is expected to increase further.

Geographic Coverage:

The global HCI market is categorized into five regions:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa

North America dominates the market due to the growing number of connected devices and video services. Asia Pacific is poised for the highest CAGR, driven by investments in ICT infrastructure by government and private entities. In Europe, Germany leads in HCI adoption.

Key Drivers:

• Shifting Workload Towards Cloud: Organizations are opting for cloud solutions over building personal data centers, driving HCI adoption.
• Optimistic Organizational Behavior for HCI Installation: Businesses recognize the need for HCI to simplify operations and enhance agility.
• Demand from Healthcare Industry: The healthcare sector's need for advanced infrastructure and data security fuels HCI adoption.
• Data Center Consolidation: The need to consolidate data centers to reduce complexity and costs drives HCI implementation.

Key Challenges:

• Limitations due to Dual-Socket Servers: HCI's use of dual-socket servers can be limiting when high CPU workload is required, impacting efficiency.
• Challenges of HCI Implementation: HCI implementation may pose challenges, especially in managing complex workloads.

Key Trends:

• Shift to Subscription-Based Contracts: HCI providers are adopting customer-friendly changes, such as subscription-based contracts, to simplify decision-making and acquisition.
• Benefits from HCI Adoption: Organizations are realizing the benefits of HCI adoption, such as simplified infrastructure and scalability.
• Transition Towards Multi-Cloud Environment: HCI is facilitating the transition to multi-cloud environments, enhancing flexibility.
• Moving Towards Edge Computing: HCI is supporting the shift towards edge computing, enabling faster data processing.

Driver: Shifting Workload Towards Cloud

The preference for cloud solutions offered by companies like Microsoft (Azure) and Amazon (AWS) is driving HCI adoption. These cloud services, including fully-outsourced cloud infrastructure, hybrid infrastructure, and fully-private cloud infrastructure, are becoming increasingly popular. HCI is expected to continue its growth as organizations prioritize cloud-based solutions over constructing their data centers.

Challenge: Limitations due to Dual-Socket Servers

HCI typically utilizes dual-socket servers, which may not efficiently support high CPU workloads in organizations. When heavy CPU applications are required, HCI may struggle to provide adequate support. This limitation can affect the performance of virtual desktop infrastructure (VDI) and other high-demand applications, making quad-socket hosts with storage area networks (SAN) more suitable in such cases.

Trend: Shift to Subscription-Based Contracts

HCI providers, recognizing changing client preferences, are introducing customer-friendly changes in pricing and licensing structures. Subscription or term-based contracts, as well as capacity-based pricing, are gaining popularity. These trends are aimed at making HCI services more accessible and adaptable to clients' requirements.

The COVID-19 Analysis

The COVID-19 pandemic led to increased HCI adoption as remote work and digital operations became more prominent. However, the installation of new HCI systems was delayed due to the pandemic. Despite initial disruptions, HCI emerged as a viable alternative to public cloud computing, supporting its growth in the post-COVID era.

Analysis of Key Players

The global HCI market is dominated by key players such as Microsoft Corporation, IBM Corporation, Fujitsu Ltd., Dell Technologies Inc., Cisco Systems, Inc., Huawei Investment & Holding Co. Ltd., Hewlett Packard Enterprise Company, Nutanix, VMware, Inc., Scale Computing, DataCore Software, StorMagic, NetApp, Inc., and Quantum Corporation (Pivot3 Inc.).

For more information about this report visit https://www.researchandmarkets.com/r/hozi30

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