Market Trends of Netherlands Data Center Rack Industry
Cloud segment to hold major share in the market
- Cloud storage in the Netherlands is growing due to the growing demand for cost-effective data backup, storage, and protection across all businesses and the need to manage data generated by the increasing use of mobile technology.
- Governments are also promoting public cloud services and changing regulations. Public cloud services have become more secure, and mass deployment of updates and patches has made software troubleshooting much easier than before. For these reasons, the government revised the National Cloud Policy in 2011.
- Additionally, 49% of Dutch banks use the cloud, of which 38% use the public cloud. Almost 60% of Dutch healthcare institutions use private clouds, of which 43% also use public clouds. Additionally, research shows that more than 50% of government agencies worldwide use office applications in the cloud. These figures are a major driver for the 2011 revision of the Dutch National Cloud Directive.
- The hyperscalers (e.g., AWS, Azure, Google Cloud) enter new agreements with public sector and on-premises cloud partners, including KPN, which offers Azure and AWS services. The move by the Dutch government also shows that the cloud has reached a level of maturity in the country and can be applied to a variety of government-related use cases. This shows that more racks are being used in data centers.
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Full rack segment to hold major share in the market
- Tier-3 and Tier-4 data centers are growing in popularity as the number of conglomerates continues to grow with the advent of 24/7 business continuity services. This increases the number of racks and indicates using the entire rack for consolidating such data.
- With the advancement of technology, people started using various internet-connected devices such as smartphones, gaming consoles, and smart devices to access streaming entertainment, online games, and other services. These applications involve the use of high data intensities, thus increasing the use of full racks in data centers.
- With the increasing acceptance of smart devices by people, customers need more racks in data centers in order to better serve them.
- In addition, the deployment of 5G should ensure adequate speed availability. As a result, the country has introduced cloud computing, internet penetration, and fiber optic technology.
- In the Netherlands, full racks occupy a large market share as the space shortage among various companies is becoming more acute. As businesses generate massive amounts of data every day, they are increasingly relying on data centers to efficiently manage their databases and storage. Therefore, a key factor in the use of data center racks is the increasing use of fully configured data centers.
