Market Trends of Italy Data Center Storage Industry
IT & Telecommunication Segment holds the major share.
- Cloud services are growing in popularity in Italy. The need for big data integration and the demand for more remote work and data migration to the cloud are driving the use of domestic cloud data centers.
- Additionally, Italy's data center providers are gradually collaborating with local and international technology companies to offer a wide range of services to their customers.
- Cloud infrastructure helps companies manage fluctuating demand and reduces IT expenditure. It also provides companies with flexibility where employees working in various geographical locations can access files on their system from the cloud. The market share for cloud as an end user is expected to reach 24% by 2029 from the market share of 23.12% in 2022.
- Features such as increased scalability, flexibility, and accommodating website traffic fluctuations are among the reasons businesses adopted the cloud service. Businesses and governments have increasingly adopted cloud services to promote digitization services in the country. The Italian government has set a budget of around EUR 1.9 billion (USD 2 billion) for the next five years to promote digitization services. As the Italian government transitioned to the cloud system, taxpayers saved around EUR 87 million (USD 91.6 million) annually.
- The telecom segment uses a hybrid cloud infrastructure combining public and private cloud services in varying phases. This helps them manage traffic fluctuations and deliver optimum performance. Cloud services have helped telecoms increase efficiency in service deployment and reduce downtime.
- Further, Increased bandwidth speeds of 37.89 Mbps offered on 4G led to mobile data consumption at 13.3 GB/month in 2022. It is expected to increase from 15.2 GB/month in 2023 to 26.7 GB/month in 2029. In addition, key players in the market focusing on expanding its 5G footprint and download speeds across the region. Factors that catalyze data consumption increase are evolving 5G technology, online gaming, banking services, OTT, online shopping, and others. Such instances in the market are expected to create more demand for data center storage in the coming years.
Understand The Key Trends Shaping This Market
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Hybrid Storage is Expected to Hold a Significant Market Share
- The combination of on-premises and cloud storage solutions is called hybrid storage in data centers. This approach leverages the strengths of both environments, offering the flexibility to store and manage data on-site and in the cloud.
- In Italy, the digital transformation is underway in a variety of sectors. Due to the growing adoption of digital technologies such as data analytics, Internet of Things, or Data Analytics, businesses are responding to a need for storage solutions that can be integrated with both on-premise and cloud environments.
- Hybrid storage may prove beneficial to businesses working with international partners or operations in Italy. To achieve seamless collaboration across borders, it enables them to collect and access data on a local basis as well as use cloud storage.
- Furthermore, factors such as online shopping would contribute to the increasing generation of data and processing facilities. As users grow more inclined to online shopping with attractive deals offered, this would lead to a rise in digital payment services and website traffic, thus increasing data consumption. The total number of unique users of e-commerce and applications in Italy increased from 35.5 million in September 2020 to 38.1 million in September 2022. All these factors would contribute to a significant increase in consumption, boosting the demand for data centers and contributing to segmental growth.
- The key players in the market focus on improving the data center storage solutions to meet the market demand. In July 2023, Hitachi Vantara, a prominent infrastructure, data management, and digital solutions subsidiary of Hitachi, Ltd., announced its collaboration with Microsoft to launch the Hitachi Unified Compute Platform (UCP) for Azure Stack HCI. The powerful and streamlined hybrid cloud solution increases business flexibility. It delivers enhanced cloud management across various environments, including data centers, branch offices, and edge computing, to give businesses greater visibility and control over how their data is stored, managed, and used.
