Edge Data Center Growth Will Push Telecom Server Market to $14 B by 2026, According to Dell'Oro Group
Thursday, November 10, 2022
Edge Applications Estimated to Represent 50 Percent of Market by 2026
REDWOOD CITY, Calif., Nov. 2, 2022 /PRNewswire/ -- According to a brand-new report "Telecom Server" from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the telecom server market opportunity is projected to reach $14 B by 2026. Edge data centers will account for most of the telecom server market growth.
"Data center IT and telecom network infrastructure have been converging in recent years. Service providers have been replacing dedicated devices with unique hardware architectures in the mobile core network with commercial off-the-shelf (COTS) hardware to virtualize various network functions," said Baron Fung, Research Director at Dell'Oro Group. "Network function virtualization has the potential to reduce capex through the use of less expensive and commoditized COTS hardware, instead of dedicated or proprietary hardware for network services. Furthermore, a new class of latency-sensitive applications in the form of multi-access edge computing (MEC), and virtualization of the baseband functions in the radio access networks in the form of Open RAN, will pave the way for the explosive growth of a new class of servers located at the network edge," explained Fung.
Additional highlights from the new Telecom Server market Advanced Research Report:
-- Edge use cases for Broadband Access, MEC, and RAN-- still in the nascent
stage, are expected to exceed 50 percent CAGR in server revenue over our
forecast horizon.
-- Server form factors and vendor ecosystem will require further
development prior to mainstream adoption.
-- Select telecom workloads are likely to migrate to the public cloud.
Dell'Oro Group's Telecom Server Advance Research Report includes a 5-year market forecast for servers deployed by service providers for IT and network functions, and servers deployed by enterprises for MEC applications. The report addresses some critical business questions:
-- How much of the telecom servers will be deployed at the core versus the
edge in the future?
-- What is the enterprise edge server market opportunity and what are some
key use cases?
-- What type of telecom or network-related workloads will be virtualized to
run on COTS servers?
-- What type of service providers will invest in the edge server market,
the major Cloud service providers or the traditional telecom operators?
-- What will be the prevalent wired and wireless network technologies
connecting the edge infrastructure?
For more information about the report, please contact us at dgsales@delloro.com.
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, networks, and data center infrastructure markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.
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SOURCE Dell'Oro Group
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