Rack Segment to Dominate the Saudi Arabia Server Market till 2026
Rise in the number of data centers and
development of smart cities is expected to drive the Saudi Arabia server
market in the forecast period.
According to TechSci Research report, “Saudi
Arabia Server Market By Hardware (Rack, Blade, Tower) By Operating System
(Linux, Windows, IOS, Others) By Enterprise Size (Small, Medium, Large) By End
User (Telecommunication, IT & ITES, Government, BFSI, Others) By
Distribution Channel (Reseller, Direct, Systems Integrator, Other), By Region,
Company Forecast & Opportunities, 2026”, the Saudi Arabia
server market is expected to grow at a steady rate during the forecast period.
An increase in the construction of data centers around the world with high
processing capabilities and the ability to store huge amounts of data is
expected to influence the server market growth.
The
launch of government initiatives such as Saudi Vision 2030, Neom City
construction, among others is supporting the growth of the server market. Saudi
Vision 2030 aims to transform the city by adopting the latest technologies to
increase efficiency and transparency in all systems. It promotes the
digitization of major industry verticals such as healthcare, BFSI,
manufacturing, among others. Leading authorities are also aiming to provide
e-Government online services to consumers such as online job searches, passport
and civil affairs, e-learning services, online payment of services.
The
COVID-19 outbreak across the world which has been declared as a pandemic by
World Health Organization has affected several countries adversely. Leading
authorities of Saudi Arabia imposed lockdown restrictions and released a set of
precautionary measures to contain the spread of novel coronavirus.
Organizations imposed work from home policy to ensure employees protection
which led to a surge in the generation of a large amount of data through
various industries requiring the proper storage of data with maximum data
privacy.
The
demand for OTT platforms increases during this period and the consumer
preference shift towards the e-commerce channels which generates a huge volume
of data for seamless streaming surged the growth of the server market during
this period.
However,
high maintenance and installation costs may create a hindrance in the Saudi
Arabia server market growth.
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Saudi Arabia server market is segmented into
hardware, operating system, enterprise size, end user, distribution channel,
regional distribution, and company. Based on enterprise size, the market can be
divided into small, medium, and large. The large enterprise size segment is
expected to account for major market share in the forecast period, 2022-2026.
Large enterprise has huge funds and can spend on
the development of their IT infrastructure. These enterprises tie up with the
IT service provider companies to ensure hassle-free service along with timely
delivery and personalization of services according to the organization's need
is contributing to accelerate the server market growth.
Based on distribution channel, the market can be
divided into reseller, direct, systems integrator, and other. The direct
channel segment is expected to witness the fastest incremental growth in the
next five years as they sell their services directly to customers thereby
cutting down the intermediary and promotional costs. These channels provide
services by offering customized designs at reasonable costs.
Based on end user, the market can be divided
into telecommunication, IT & ITES, government, BFSI, others. The IT &
ITES segment is expected to hold a major market share in the forecast period
due to the rise in network connections and higher penetration of smartphones.
The rise in disposable income among consumers is enabling them to adopt fast
internet services. The expected roll-out of 5G technology and adoption of
advanced technologies by IT companies is accelerating the segment growth.
Dell Technologies Inc., Eaton Corporation
Plc, Fujitsu Ltd., Hewlett Packard Enterprise Saudi Arabia, Legrand SA, Oracle
Corp., Panduit Corporation, Saudi Arabia, Rittal GmbH & Co. KG, Schneider
Electric SE, Vertiv Group Corp, and others are some of the leading players
operating in Saudi Arabia server market. Companies
operating in the market are using strategies such as joint ventures, product
launches, mergers, and research collaborations to boost their share and
increase their geographic reach.
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“The
high demand for high-power computing services due to the rise in the number of
applications supporting hyper converged infrastructure, software defined
solutions and big data analytics is contributing to the high server market
growth in the next five years. Roll-out of 5G technology and introduction of novel
applications requiring fulfillment of specific configurations coupled with
growing adoption of cloud-based services by the organizations is anticipated to
propel the server market growth till 2026” said Mr. Karan
Chechi, Research Director with TechSci Research, a research based global management
consulting firm.
“Saudi
Arabia Server Market By Hardware (Rack, Blade, Tower) By Operating System
(Linux, Windows, IOS, Others) By Enterprise Size (Small, Medium, Large) By End
User (Telecommunication, IT & ITES, Government, BFSI, Others) By
Distribution Channel (Reseller, Direct, Systems Integrator, Other), By Region,
Company Forecast & Opportunities, 2026”, has evaluated the future growth potential of Saudi
Arabia server market and provides statistics & information on market size,
structure and future market growth. The report intends to provide cutting-edge
market intelligence and help decision makers take sound investment decisions. Besides,
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in Saudi Arabia server market.
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