Market Trends of Server Operating System Industry
Cloud Segment is Expected to Hold a Significant Share of the Market
- A growing number of companies are increasingly using cloud computing technologies to provide efficient application and data management with no need for constructing or maintaining IT infrastructures on site. As per Flexera 2023 State of the Cloud Report, 75% of enterprise respondents indicated adopting Microsoft Azure for public cloud usage.
- Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are the leading cloud computing platform providers globally. This rapid adoption of cloud technologies and the rising demand for one-stop access to multi-cloud services have created opportunities for cloud services brokerage. Such huge adoption of the cloud would increase the demand for servers, proportionately driving the demand for the studied market.
- Moreover, In the year 2024, Flexera Software has reported that nearly half (49%) of respondents are currently using Amazon Web Services (AWS) for substantial workloads.
- As organizations had to modernize and migrate to the cloud abruptly, various financial organizations partnered with cloud service providers. Such as HSBC's planned cloud contract with Amazon Web Services (AWS), Deutsche Bank striking a 10-year strategic partnership with Google Cloud, and Santander's made announcement that it is shifting its over 200 servers to the cloud per day, the company has declared the deadline to complete this project is the year 2023.
- According to Thales Group, as of 2022, around 60% of all corporate information is stored in the cloud. As companies progressively move their resources into cloud environments to enhance security, dependability, and enterprise agility, this proportion hit 30% in 2015 and has since continued to grow. These factors create a massive growth opportunity for the market-studied vendors to expand their offerings in the coming years.
- The growing adoption of cloud computing among enterprises also expands the market studied scope. For instance, India-based market vendor, Druva Inc., reported that many companies primarily target enterprise data due to a large amount of unstructured data. The company also reported that this data claim accounts for over 80% of the data stored in enterprise storage systems.
- As per CloudPathSurvey conducted during a pandemic, 89% of banks plan to operate with hybrid cloud storage and deployment. As per Nutanix's third annual Enterprise Cloud Index report for financial services, hybrid cloud adoption is expected to grow 39% in the coming five years. Such huge adoption towards cloud deployment would drive the demand for the studied market.
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North America Expected to Witness Significant Growth
- North America is expected to hold a significant share of the market. Americans are anticipated to lead the international market due to the increasing demand for server operating systems and the development of Internet applications. Using artificial intelligence technology, the server operating system manages many applications, such as storage and server management. The market in the region is being driven by the growing adoption of cloud computing solutions across numerous corporations. As a result, several provincial market participants are expanding their investments in cloud computing services. Several players are even focused on providing server operating system services.
- The players in the region are developing new operating systems (OS) for servers to capture the market share. For example, Red Hat Enterprise Linux (RHEL) 9 Beta is available and delivers exciting new features and many more modifications. RHEL 9 Beta is established on upstream kernel version 5.14 and delivers a preview of the following major update of RHEL. This release is designed to require hybrid multi-cloud deployments that range from on-premises and public cloud to edge. The System Security Services Daemon (SSSD), the built-in business single-sign-on framework, now adds more detail for possibilities such as time to complete tasks, errors, the authentication flow, and more. New search capabilities allow admins to analyze performance and configuration issues.
- According to the United States Small Business Administration Office of Advocacy, in 2022, the number of small businesses in the United States reached 33.2 million, accounting for nearly all (99.9 percent) firms in the country. The growth in the number of small businesses in the United States in 2022 reflects continuous growth, with a 2.2% increase from the previous year(2021) and a 12.2% increase from 2017 to 2022. Such a massive rise in the SMEs in the various region would create an opportunity for the market players to develop new solutions to capture the market share. Such a huge number of SMEs would allow the studied market to grow.
- Furthermore, virtualization technologies have also been instrumental in driving the market with the rise of cloud computing. Cloud environments use virtualization to create and manage multiple virtual machines (VMs). Operating systems that offer robust virtualization capabilities, for example, Linux with KVM (Kernael-based Virtual Machine) or Microsoft Windows with Hyper-V, become essential for cloud providers and users. Such technologies enable the efficient allocation of resources and managing VMs, further growing the appeal of specific server operating systems in cloud deployments.
- Further, the booming 5G deployments in the country will increase the demand for server operating systems to support the 5G features and services being rolled out. For instance, according to Ericsson, there will be more than 195 million 5G subscriptions by 2026, and by 2029, in the United States, 5G will account for about 71.5% of the entire U.S. mobile market. According to CTIA, rapid growth creates a platform for the US 5G economy.
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