Market Trends of UK Data Center Storage Industry
IT & Telecommunication Segment Holds the Major Share.
- The UK cloud computing market is poised for significant growth over the next five years, driven by the convergence of emerging technologies such as artificial intelligence, Internet of Things, and machine learning. These advancements will play a pivotal role in fostering innovation and expanding the capabilities of cloud computing services.
- In the realm of cloud storage, customers and companies leverage provider servers and hardware to store data or run systems. Some colocation providers go beyond offering data center hosting and provide managed services, isolating virtualized workloads in a multi-tenant server environment.
- The United Kingdom has demonstrated noteworthy progress in expanding broadband internet connections. The government has set ambitious targets, aiming to make a 5G signal available to most of the population by 2027, connect 15 million more premises to full fiber by 2025, and achieve total fiber coverage throughout the country by 2033.
- A noteworthy development in March 2022 was Amazon Web Services (AWS) doubling its investment in the UK with a commitment of GBP 1.8 billion (USD 2.24 billion) over the next two years for cloud computing infrastructure. While AWS remains a key player, it faces growing competition from tech giants Microsoft and Google in the enterprise customer landscape. These developments are expected to not only drive the growth of data centers but also substantiate the expansion of storage solutions in the region.
- A March 2024 survey conducted by Flexera Software revealed that technical professionals working in European organizations predominantly use Azure as their primary public cloud provider for the majority of their workloads. Furthermore, approximately 40% of the respondents indicated that AWS serves as their main cloud provider for managing workloads.
Understand The Key Trends Shaping This Market
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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.
- London is a global financial center, and the financial services sector relies heavily on data center storage. In addition, there are strict rules on data storage, privacy, and security in different sectors of the UK, such as finance and healthcare. In order to ensure the integrity and legal compliance of data, these hybrids allow organizations to tailor their storage strategies according to particular legislative requirements.
- The UK business climate is cost-conscious, with hybrid storage tools enabling organizations to optimize their costs effectively. Businesses can align their storage costs with actual use through the use of on-premises storage for critical and frequently accessed data and cloud storage for less critical or archived data.
- The increasing focus on digitalization, Internet penetration (Internet penetration stood at 97.8% by the start of 2023 with 0.3% growth between 2022 and 2023), and the United Kingdom is the fourth-largest market for e-commerce. In 2021 and 2022, consumers across the UK were turning toward e-commerce, and over 85% of UK residents are shopping online across the country, creating more need for storage facilities, resulting in huge demand for data centers and, consequently, the need for more storage solutions within data centers.
- The key players in the market focus on improving the data center storage solutions to meet the market demand. In June 2023, to provide customers with greater speed, agility, flexibility, and choice in their hybrid cloud strategy, Hewlett Packard Enterprise (HPE) and Equinix have announced an expanded partnership to preconfigure HPE GreenLake for Private Cloud Enterprise and HPE GreenLake for Private Cloud Business Edition in Equinix data centers worldwide.
