- The high-availability server market is influenced by the proposed investments in data center construction projects by Google, AWS, Alibaba Cloud, and Microsoft. Server vendors are reducing the prices of their products to specifically target the small and medium enterprises (SMEs). Vendors are focusing on designing and manufacturing energy-efficient processors to cater to the increasing demand for energy-efficient servers.

- The growing requirements for cloud service solutions in the various end-user industry, such as BFSI, IT& Telecom, will influence the demand for the high availability server market.

- Further, the demand for big data analytics and cloud-enabled applications will influence the growth potential of cloud service providers, thereby fueling the growth of the high availability server across the emerging economies.

Key Market Trends

BFSI Sector is Expected to Have a Significant Growth Rate

- A properly designed high availability server offers minimum processing latency and maximum uptime by means of hardware redundancy feature, which serves to lower the risk of hardware failure. This advantage has led to its swift uptake by the banking and financial institutions that need to store vast amounts of data and access those quickly, efficiently, and securely.

- Low or almost zero risks of system failure enables BFSI organizations to run their business without interruptions, protect companies from lost revenue when the process of accessing their business application and data resources get disrupted.

- These servers are operated using high-availability software to harness the redundant computers that provide continued service when the server components fail. Without high-availability software, if a server is running a particular application and crashes, the application will be unavailable until the server is restored or fixed.

North America Region is Expected to Grow at a Significant Rate

- North America is expected to maintain its dominance in the global market place as the growth is attributable due to the presence of prominent players such as Dell Inc, Cisco System Inc., IBM Corp., AWS Inc., among others. These players are putting efforts to strengthen their market position across the U.S. and Canada thereby covering majority of the share.

- Moreover, the early adoption of advanced technologies in this region pushes growth in the overall market. The penetration of high availability server set up is increasing across end-use industries, which creates growth opportunities for the market in North America.

- Further, the growing number of mergers and acquisitions among some of the prominent players are putting efforts to strengthen their market position across the region.

Competitive Landscape

The high availability server market is moderately competitive and consists of a few major players. In terms of market share, some of the players currently dominate the market. However, with the advancement in the server infrastructure across the enterprise services, new players are increasing their market presence thereby expanding their business footprint across the emerging economies.

- July 2019 - Cisco System and Acacia Communications announced that they have entered into a definitive agreement under which Cisco has agreed to acquire Acacia. An existing Cisco supplier, Acacia designs and manufactures high-speed, optical interconnect technologies that allow webscale companies, service providers, and data center operators to meet the fast-growing consumer demands for data.

- June 2019 - VMware Inc. announced its intent to acquire Avi Networks, a leader in multi-cloud application delivery services. Avi Networks will further enable VMware to bring the public cloud experience to the entire data center automated, highly scalable, and intrinsically more secure with the ability to deploy applications with a single click, upon close of the acquisition.

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