The composable infrastructure market is expected to grow at 21.3% CAGR during the forecast period of 2021-2026. Composable infrastructure refers to the IT infrastructure formed by disintegrating various components such as compute, networking, and storage of the data center infrastructure and integrating them in different ways as per the needs of specific workloads. Major factors that are expected to drive the growth of the composable infrastructure market are rising business analytics workload, increased customer expectations, implementation of methodologies such as DevOps, the rise of automation and standardization tools, and the increasing adoption of hybrid cloud.
- The conventional siloed IT infrastructure is unable to provide the flexibility required by the modern world’s enterprise-critical applications. Additionally, an increasing number of IT firms are shifting to DevOps methodology for application development, which needs an agile framework to keep up with the rapidly evolving application requirements and often uses an “infrastructure as code” methodology to optimize resource allocation.
- A composable infrastructure turns “infrastructure into code” with the help of an easy-to-use API. For a large enterprise, the infrastructure as code solution delivered efficiency to the IT infrastructure team with the ease and agility to deploy. For instance, in May 2020, DivvyCloud released a new Infrastructure as Code (IaC) security solution. This capability enables cloud security into the DevOps process, which improves the developer’s productivity and preventing security issues during the build process. With this newly developed solution, DivvyCloud offers seamless, full-lifecycle cloud security, ensuring that the customers can accelerate innovation using cloud services without losing control.
- Flexible and scalable app development requires a framework that leverages accelerators like reference architectures, blueprints, management tools, and native composable fabric of composable infrastructure. For example, Wipro’s “FluidIT framework,” consisting of Service Theater, ASPIRE, and composable infrastructure, delivers a programmable infrastructure ecosystem that builds the foundation of a software-defined datacenter and hybrid cloud.
- To deploy a safe composable infrastructure, vendors are following the methodologies like establishing a root of trust (RoT), and encrypting data at rest and in transit, etc. To protect against threats like cyberattacks, which can exploit the full firmware and network servers, it is necessary to establish a root of trust (RoT) that prevents servers from malicious firmware code. For example, significant vendors like Dell EMC and HPE use an RoT embedded in their hardware, by creating an unmodifiable fingerprint in the silicon. This will prevent servers from booting up unless their firmware matches the fingerprint.
- At the time of the COVID-19 pandemic, technology vendors are supporting organizations across all potential industries with their innovative composable infrastructure solutions. First Technology Inc., in a strategic alliance with Hewlett Packard Enterprise, can enable any size business to optimize its current IT infrastructure, particularly considering the harsh economic times.
- In this daunting time when organizations are struggling to keep up with their regular infrastructure needs, Pramerica Life Insurance company has achieved a milestone of 99% uptime in a stable and flexible composable infrastructure. These increasing use cases of composable infrastructure at the time of the COVID-19 situation will further boost the market growth.
Key Market Trends
IT & Telecom Vertical is Expected to Grow at a Significant Rate Over the Forecast Period
- In the current scenario, IT & telecom enterprises want to accelerate their data, apps, and innovation. This needs the ability to more efficiently manage conventional bare-metal and virtualization applications while supporting containerized applications with software-driven automation, and a fluid pool of resources that can flexibly custom fit to the specific requirements of applications. As tech firms transition from a software-defined data center to an autonomous one, IT teams required to put the insights gathered about the infrastructure and workloads into insights-driven actions to ensure an environment that is always-fast.
- For instance, in November 2019, Hewlett Packard Enterprise announced composability and integrated intelligence offerings by integrating its AI and machine learning-driven HPE Primera platform with the composability in HPE Synergy and HPE Composable Rack. It will help customers rapidly deliver new apps and innovations to boost their businesses forward.
- In May 2020, DriveScale Inc., a provider of the bare metal cloud infrastructure solutions, announced its support for Western Digital’s OpenFlex composable architecture. The significant combination of DriveScale Composable Platform and OpenFlex enables automated, end-to-end NVMe over Fabrics deployment so customers can provision compute and storage resources.
- Composable infrastructure providers like Liqid Inc. offer a low-latency PCIe fabric to connect the pools of GPUs, CPUs, FPGAs, NVMe storage, and Intel Optane non-volatile memory. The IT customers can orchestrate balanced systems for each artificial intelligence phase of data ingest, cleaning or tagging, training, and inference while minimizing the infrastructure footprint. The major technology providers will help boost the segment’s growth in the coming years by introducing these innovative offerings for the IT & telecom sector.
North America Geographic Segment is Expected to Hold a Significant Share Throughout the Forecast Period
- The primary driver for the growth of the North America geographic segment is the significant presence of technology providers. These players focus on entering into partnerships, merger-acquisitions, and innovative solutions offerings to stay in the regional and globally competitive landscape.
- In February 2020, Fungible Inc, a US infrastructure systems startup, is developing front-end every system resource with its composable microprocessors. It will help to offload security and storage functions from server CPUs.
- Due to the sustainable and well-established economy of the region, the market is likely to show immense growth potential during the forecast period. Additionally, the growth of the market is also attributable to the increasing use of virtualization across various industry verticals.
- According to Spiceworks’ study, in 2020, the North American enterprises with a size of more than 5,000 people are spending nearly 22% on hosted/ cloud-based services, which will further drive the region’s growth in the coming year.
- The economy of the United States and Canada comprise a better infrastructure and hence can provide better internet penetration. This helps in faster implementation of new technologies, driving the growth of the composable infrastructure market.
The composable infrastructure market is moderately competitive and consists of a significant number of global and regional players. These players account for a considerable share in the market and focusing on expanding their client base across the globe. These players focus on the research and development activities, strategic alliances, and other organic & inorganic growth strategies to stay in the market landscape over the forecast period.
- In March 2020, DriveScale, Inc. announced support for the programmable Mellanox BlueField SmartNIC, an IPU that can be used to offload network and storage processing from the host CPU. The alliance between BlueField and DriveScale's composable platform enables end-to-end, automated NVMe-oF deployment, and composes storage and compute nodes over a standard ethernet network.
- In May 2020, Dell Technologies announced the launch of Dell EMC PowerStore, a modern, adaptable infrastructure platform built from the cutting-edge technology and expertise to solve the challenges of the contemporary data era. The customers can enhance their PowerStore capacity and performance after 180 days of frequency. The combination of flexible upgradation and Dell EMC PowerStore's flexible architecture significantly reduce the need for disruptive platform migrations.
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1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Significantly High Scalability of Composable Infrastructure
5.2 Market Challenges
5.2.1 Lack of Awareness and Skillset to Implement a Composable Infrastructure
6 IMPACT OF COVID-19 ON THE COMPOSABLE INFRASTRUCTURE MARKET
7 MARKET SEGMENTATION
7.2 End-user Verticals
7.2.1 IT & Telecom
7.2.4 Industrial Manufacturing
7.2.5 Others (Retail, Media & Entertainment, Energy & power)
7.3.1 North America
7.3.3 Asia Pacific
7.3.4 Latin America
7.3.5 Middle East and Africa
8 COMPETITIVE INTELLIGENCE
8.1 Company Profiles*
8.1.1 Nutanix Inc
8.1.2 Juniper Networks, Inc.
8.1.3 Lenovo Group Limited
8.1.4 Dell EMC (Dell Technologies Inc)
8.1.5 Western Digital Corp
8.1.6 Hewlett Packard Enterprise Co
8.1.7 NetApp Inc.
8.1.8 DriveScale, Inc.
8.1.9 TidalScale, Inc.
8.1.10 Liqid Inc.
9 INVESTMENT ANALYSIS
10 FUTURE OF THE MARKET
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.