Market Trends of Nigeria Data Center Storage Industry
IT and Telecom to Hold Significant Share
- The arrival of 5G promises a major increase in speeds, ultra-low latency, and unforeseen network capabilities, paving the way for groundbreaking applications with real-time connectivity across everything.
- 5G and high-speed flash storage are enabling emerging IoT use cases, leading to major market demand. The introduction of the 5G network in certain parts of the country has boosted the networking and storage capabilities of Nigeria.
- In September 2022, MTN Nigeria and Ericsson launched the first phase of 5G services in parts of Nigeria and Lagos. These 5G services are expected to bolster the development of new-age technologies in Nigeria, including AR, VR, IoT, AI, and others, which would create considerable demand for colocation services by enterprises.
- 5G boasts nearly seven times faster throughput than 4G, reaching speeds of 10 Gbs compared to 1.45 Gbs. This leap complements the significant I/O throughput enabled by enterprise-grade technologies like NVMe and SSDs in servers and storage appliances. The demand for NVMe is increasing in SSD servers and storage appliances, which is expected to drive the market's growth during the forecast period.
- Furthermore, the need to respond to evolving market standards in a compressed time-to-market window has resulted in the widespread use of field-programmable gate arrays (FPGAs) and complementary system-on-chip devices (SoCs). These devices can be configured by diverse types of memories, including flash.
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All-Flash Storage to Witness Significant Growth
- The adoption of flash storage is highly dependent on its benefits, such as power consumption, increasing performance, and ease of maintenance, which have been boosting the adoption rate. The increase in hybrid cloud service providers creates a major demand for all-flash storage.
- The indirect impact of the new data center facilities for cloud-based services provided by companies continues to boost the demand. It is expected to attract more opportunities in the future. In October 2022, Google activated its local cloud region for Nigeria to offer better cloud-based security to public entities and government ministries.
- Growing investments in start-ups such as FinTech and e-commerce using big data analytics and IoT applications are expected to increase the demand for all-flash storage in the Nigerian data center market. In 2020, the Nigerian government announced the plan to establish the Centre for Artificial Intelligence and Robotics in Nigeria (CFAIR) to facilitate emerging technologies such as ICT security and networking.
- Big data storage is a compute-and-storage architecture that one can use to collect and manage huge-scale datasets and perform real-time data analyses. With big data and analytics, the data access and processing patterns demand a higher storage performance, along with increased concurrency. Furthermore, SCMs (storage-class memory) are likely to be deployed as a caching layer for an all-flash array. These new developments are expected to offer optimized workload performance whilst lowering storage costs.
