Market Trends of South Korea Data Center Networking Industry
BFSI to Hold Significant Market Share
- The average financial institution requires a constellation of services, capabilities, and security policies to carry out daily business. Managed IT services assist with each of these by implementing best practices overseen by experienced professionals to optimize the network.
- In the banking, financial services, and insurance (BFSI) sector, SDN can meet the demands of next-generation technologies through a network that provides flexibility, agility, security, and surrender in the service of a genuinely customer-first experience.
- South Korea has an advanced and profitable financial services sector, including Asia's third-largest insurance and banking markets. Strong fundamentals and aggressive regulations underpin the banking sector's stability.
- The government has also announced its plans to turn Seoul into a “fintech test bed," which could further boost the demand for data center networking from the BFSI segment. Korean banks are preparing for digitization by accelerating the closure of their branches nationwide. This move also aims to cut fixed costs to free up money to invest in growing digital businesses. Currently, only fewer people visit branches due to the growing popularity of mobile banking platforms. Such trends may drive the demand for data centers and networking solutions from the BFSI segment in the coming years.
Understand The Key Trends Shaping This Market
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Application Delivery Controller to Hold Major Market Growth
- The application delivery controllers primarily provide security and access to the applications at peak times. As computing is moving toward the cloud, software ADCs have been performing tasks that have been traditionally performed by custom-built hardware. They also offer additional functionalities and flexibility for application deployment.
- Additionally, with the increase in distributed denial-of-service (DDoS) attacks disrupting enterprise servers, companies can also rely upon ADCs to set limits on requests and traffic hitting a single internal server resource. In Seoul, as per the government, the number of cyber threats rose more than 60 percent in 2022 from a year earlier due to increased ransomware attacks. The number of distributed denial-of-service (DDoS) attacks was also on a steady rise, with 48 cases, up sharply from nine a year ago.
- An ADC, therefore, can be deployed physically as a hardware appliance or virtually as software. The virtual application delivery controllers are primarily useful in large enterprise data centers and cloud computing environments as customers need the ability to scale the capacity up and down as application demand fluctuates.
- Due to global IT trends, such as digitalization and remote working, the penetration rate of Cloud services in South Korea has drastically grown over the last decade. Some of the market key players are Amazon Web services, Alibaba Cloud, Google Cloud Platform, Microsoft Azure, and Others. Unlike conventional on-premise Application Delivery Controllers that are installed along with the application servers, around-the-clock accessibility is the most significant advantage of a cloud-based Application Delivery Controller.
- By offering client access to the application server from anywhere, in the office or on the way home, and any device, a desktop, a laptop, a smartphone, or tablet, a cloud-based ADC enables clients or users to access the web servers they require, improving business process efficiency. In 2022, the most commonly used cloud service in South Korea was Naver Cloud, which was selected by roughly 72 percent of respondents in a survey. This cloud company offers IT platform services, such as storage, IT infrastructure consulting, data centers, networks, and security.
- Leading ADC providers such as F5 Networks have started integrating their products with the big three cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP), with and flexible model that matches the cloud purchasing patterns of the users. Overall, the market is expected to grow during the forecast period.
