Market Trends of Shanghai Data Center Industry
Increasing cloud and colocation services are anticipated to drive the growth of data center market in the Shanghai.
- Virtualization has driven the data center industry over the years. Companies have sought to reduce infrastructure by focusing IT operations on fewer, more highly utilized machines. This process has led to a wider view of data centers in general. Companies operating multiple data centers can focus their facilities on fewer and larger implementations to decrease complexity and costs.
- Additionally, Factors including increasing cloud and colocation services, associated cost benefits in the region provided by the government, and improved economies of the Shangai region are anticipated to drive the market for data centers. Microsoft, and Amazon Web Services (AWS), data centers are in a class by themselves. They have to function fully automatic, self-healing, networked data centers that operate at fiber optic speeds to make a fabric that can access any node in any particular data center, as there are multiple pathways to every node.
- However, higher initial investments and low resource availability are some factors presenting challenges to this market. Despite such challenges, various organizations have already adopted or are initiating the adoption of data centers in the region.
Understand The Key Trends Shaping This Market
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BFSI segment to grow at a noteworthy pace.
- The banking and finance sector is one of the largest data generators, and the need for a data center to regulate the cost of operations is a primary driver. Finance and banking structures use data centers to store customer records, employee management, transactions, and electronic banking services, such as remote banking, telebanking, and self-inquiry, which need data centers to function.
- Data centers, as infrastructure, are believed to be the future of finance. Many institutions have created private cloud systems to accommodate massive network, storage, and server capacities to support their retail financial centers, ATMs, and active online accounts.
- The digital ecosystem surrounding a bank is blowing up at a quick pace. With the constant change in consumer demands, banks have been forced to customize their product offerings according to their demands. Secondly, as consumers embrace a mobile lifestyle and socialize on digital platforms, they expect banks to connect with them on the same platforms.
- Many banks maintain their own data centers in the country, but it has been observed that the trend is changing due to fluctuations in the banks' profits. Also, maintaining a data center is cumbersome, owing to the cost drain on IT, real estate, and operations, as it requires proper cooling, security, and power facilities. This can act as a challenge for the BFSI industry during the forecast period.
