Market Trends of Netherlands Data Center Storage Industry
The IT & Telecommunication Segment is Expected to Hold the Major Share
- Cloud storage in the Netherlands is expanding as a result of rising demand for low-cost data backup, storage, and protection across all companies and the need to manage the data produced by the increased 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 were a major driver for the 2011 revision of the Dutch National Cloud Directive.
- The hyperscalers (e.g., AWS, Azure, Google Cloud, etc.) enter new agreements with public sector and on-premises cloud partners, including KPN, that offer Azure and AWS services. The move by the Dutch government showed that the cloud had reached a level of maturity in the country and could be applied to a variety of government-related use cases. This showed that more racks were being used in data centers.
- In telecommunications, the implementation of 5G is projected to impact data traffic positively. By 2026, the country's 3.5 GHz (5G) rollout is anticipated to be complete. By 2030, 60% of the Dutch population will be covered by the 3.5 GHz 5G network, up from 33% in 2023. This trend may greatly encourage the usage of VOD. Such instances in the market are expected to create more need for data centers, resulting in more demand for data center storage solutions in the coming years.
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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.
- The Netherlands is a strategically vital gateway into Europe, and it has good links with the big cities in Europe. It is a desirable location for data centers, thus facilitating adequate access to the global market, which results in creating more need for hybrid-type data centers.
- Interconnectivity is enhanced by the presence of essential Internet exchanges such as Amsterdam's Internet Exchange (AMSIX). Businesses that require quick and reliable access to other networks worldwide find this crucial, creating more need for hybrid-type data centers.
- The government is expected to make more investments to innovate in areas such as quantum computing, artificial intelligence, and applications utilizing 5G and 6G technologies. It aims to attain full 5G coverage, for which it had planned a 5G spectrum auction in 2023. Such aspects are expected to complement the growth and demand for data processing facilities in the telecom industry, propel data centers' growth, and contribute to segmental growth.
- The key players in the market are focused on improving the data center storage solutions to meet the demand. In May 2023, Infinidat, a prominent provider of enterprise storage solutions, announced the launch of two prominent new solutions. The solutions included the launch of InfuzeOS Cloud Edition, which expanded Infinidat's support of hybrid cloud storage deployments and new InfiniSafe Cyber Detection for enterprise primary storage to better resist cyberattacks.
