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The global micro data center market is expected to hit revenues of US$ 33.4 billion by 2030, with an annual growth rate of more than 21.0%, primarily driven by significant growth as edge computing and cloud computing gain traction.

Wilmington, Delaware, Nov. 16, 2023 (GLOBE NEWSWIRE) -- Global Micro Data Center Market is valued at US$ 8.8 billion in 2023 and is expected to grow at a significant CAGR of over 21.0% over the forecast period of 2023-2030, according to the published market report by RationalStat

Market Definition, Market Scope, and Report Overview

Micro data centers are redefining data processing and storage methodologies. Traditionally, telecom operators depended on centralized data centers located far from the network edge, resulting in latency difficulties and decreased service efficiency. Micro data centers address these issues by offering localized data processing and storage, lowering latency, and improving overall user experience.

The telecom industry's increased demand for mini data centers is altering the data processing and storage landscape. Micro data centers are becoming crucial components of telecom carriers' infrastructure as they attempt to deliver high-speed, low-latency services in the era of 5G and edge computing.

According to a deep-dive market assessment by RationalStat, the global micro data center market has been analyzed on the basis of market segments, including component, rack unit, end user, application, enterprise size, and geography/regions (including North America, Latin America, Western Europe, Eastern Europe, Middle East & Africa, and Asia Pacific). The report also offers global and regional market sizing for the historical period of 2019-2022 and the forecast period of 2023-2030.

Market intelligence for the global micro data center market covers market sizes on the basis of market value (US$/EUR Million) and volume (Units) by various products/services/equipment, demand assessment across the key regions, customer sentiments, price points, cost structures, margin analysis across the value chain, financial assessments, historical and forecast data, key developments across the industry, import-export data, trade overview, components market by leading companies, etc.

In addition, the long-term sector and products/services 10-year outlook and its implications on the global micro data center market. It also includes the industry's current state Production Levels, Capacity Utilization, Tech quotient, etc. Key information will be manufacturing capacity by country, installed base, import volumes, market size, key players, market size, dynamics, market data, insights, etc.

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Global Micro Data Center Market: Segmental and Market Share Analysis

Report Synopsis

Report Metrics

Details

Base Year

2022

Forecast Period

2023-2030

Base Year Market Size

US$ 8.8 billion

Market Size Forecast

US$ 33.4 billion

Growth Rate

21.0%

Key Market Drivers

Expanding telecommunication industry

Cost-efficiency provided by micro data centers

Micro data centers ability to withstand harsh environment

Companies Profiled

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Competition Analysis and Market Structure

These players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers & acquisitions, partnerships and collaborations, and product launches are some of the strategies followed by industry players.Some of the key developments in the global micro data center market include,

Some of the prominent players and suppliers operating and contributing significantly to the global micro data center market growth include Edgemicro, EdgePresence, NVIDIA Corporation, Smart Edge Data Centers Limited, Eaton Corporation, Hewlett Packard Enterprise, Huawei Technologies, IBM Corporation, Panduit Corporation, Rittal GmbH & Co Kg, Schneider Electric SE, Vertiv Co, and Attom Technology, among others.

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RationalStat has segmented the global micro data center market based on component, rack unit, end user, application, enterprise size, and region

Global Micro Data Center Market Value (US$ Million), Volume (Units), and Market Share (2019-2030) Analysis by Component

Global Micro Data Center Market Value (US$ Million), Volume (Units), and Market Share (2019-2030) Analysis by Rack Unit

Upto 24U

24U to 40U

More than 40U

Global Micro Data Center Market Value (US$ Million), Volume (Units), and Market Share (2019-2030) Analysis by End User

BFSI

IT & Telecom

Energy

Colocation

Energy

Government

Healthcare

Industrial

Others

Global Micro Data Center Market Value (US$ Million), Volume (Units), and Market Share (2019-2030) Analysis by Application

Mobile Computing

Remote Office Support

High Density Networks

Disaster Recovery

Others

Global Micro Data Center Market Value (US$ Million), Volume (Units), and Market Share (2019-2030) Analysis by Enterprise Size

Global Micro Data Center Market Value (US$ Million), Volume (Units), and Market Share (2019-2030) Analysis by Region

North America Micro Data Center Market

Latin America Micro Data Center Market

Brazil

Mexico

Rest of Latin America

Western Europe Micro Data Center Market

Germany

UK

France

Spain

Italy

Benelux

Nordic

Rest of Western Europe

Eastern Europe Micro Data Center Market

Russia

Poland

Hungary

Other CIS Countries

Rest of Eastern Europe

Asia Pacific Micro Data Center Market

China

Japan

India

South Korea

Australia

ASEAN

Indonesia

Thailand

Philippines

Vietnam

Malaysia

Rest of ASEAN

Rest of Asia Pacific

Middle East & Africa Micro Data Center Market

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Key Questions Answered in the Micro Data Center Report:

What will be the market value of the global micro data center market by 2030?

What is the market size of the global micro data center market?

What are the market drivers of the global micro data center market?

What are the key trends in the global micro data center market?

Excerpt from:
Micro Data Centers Market to Reach US$ 33.4 Billion by 2030, Driven by Growing Demand for Edge Computing and Cloud-Based Applications | According to...

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4kodiak/iStock Unreleased via Getty Images

The cloud computing industry has been booming for the past two decades, with Amazon Web Services (AWS) being the undisputed leader. However, a growing movement called #CloudExit, which was started by the founders at Basecamp, is calling for businesses to move away from cloud providers like Amazon (NASDAQ:AMZN) and back to on-premises infrastructure for possible cost savings. This movement could pose a significant threat to Amazon's stock price.

According to Amazon's 2022 annual report, AWS is the most profitable segment of Amazon's business, accounting for a significant portion of the company's overall profit. For the year 2022, cloud-computing revenue generated 74% of Amazon's operating profit, despite accounting for just 13% of the company's total revenue. This highlights the high profitability and critical importance of AWS to Amazon's financial performance.

The following table breaks down Amazon's operating profit by segment in 2022:

As you can see in the table above, Amazons cloud-computing division generates more than 2 times the amount of profits generated by any other segment, including Amazons huge retail business. This dominance is driven by the high margins associated with cloud computing services, margins that potentially be squeezed by increased competition from other cloud providers as well as the impact of the #cloudexit movement.

The #CloudExit movement is a grassroots effort gaining popularity in certain developer circles that is calling for businesses to reconsider their use of cloud computing. Proponents of the movement; such as Basecamp founder David Heinemeier argue that cloud computing is too expensive, too complex, and too risky. They also argue that cloud providers like AWS have too much power and that businesses need to take back control of their data.

In his article titled "We Have Left the Cloud," David Heinemeier Hansson details his company's successful migration away from cloud services to self-operated hardware, achieving substantial cost savings. The six-month transition involved bringing on-premises 6 services, including Basecamp Classic and Highrise, promising continued support for existing users. The most impressive move was transitioning the cloud-born HEY email service to their new infrastructure.

Utilizing an open-source stack with tools like KVM, Docker, and Kamal, the company avoided the complexities of Kubernetes and enterprise service contracts. The cost analysis revealed done by David and his team says that there will be estimated annual savings of at least $1.5 million by owning hardware compared to renting from Amazon Web Services (AWS).

Remarkably, they didnt see a need for an increase in the size of the team, challenging the notion that cloud services inherently lead to increased productivity with smaller teams.

In his article, Heinemeier encourages established companies to reconsider the cloud, asserting that benefits are often overstated, and costs are usually higher. The article concludes by urging readers to conduct their own cost analysis and evaluate their specific needs, emphasizing the availability of tools for a successful cloud exit. The experience shared in the article has prompted other companies to rethink their cloud expenditures, highlighting the potential for considerable savings.

Elon Musk's company, X, is celebrating significant cost savings of 60% following its #CloudExit strategy, as revealed by the engineering team. The move involved optimizing the use of cloud service providers and transitioning to on-premises solutions. Notably, the shift reduced monthly cloud costs by 60%, achieved by moving media/blob artifacts out of the cloud. Additionally, cloud data storage size was reduced by 60%, and cloud data processing costs saw a remarkable 75% reduction.

Given earlier reports indicating X's annual spending of $100 million on AWS, the 60% reduction suggests potential savings of $60 million per year. What makes this accomplishment even more impressive is the concurrent downsizing of the engineering team to a quarter of its previous size. Formerly employing around 8,000 individuals, X reportedly now operates with less than 2,000 engineers.

The X story underscores the potential impact on CFOs and investors, highlighting that Musk's success in running a streamlined operation with substantial savings from exiting the cloud could inspire other corporations to explore similar strategies. The #CloudExit concept, as exemplified by X, might be on the verge of becoming a mainstream trend, prompting businesses to evaluate the financial benefits of transitioning away from cloud services.

The #CloudExit movement could have a significant impact on Amazon's stock price. If a large number of businesses decide to move away from AWS, it could lead to a total collapse in profits for the company given AWSs importance in the companys financial performance and their lack of profitability in their other divisions. The heavy reliance on AWS for profits makes Amazon vulnerable to any downturn in the cloud computing market. If demand for AWS services were to decline, it could have a significant impact on Amazon's overall profitability.

It is too early to say what the long-term impact of the #CloudExit movement will be. However, it is clear that the movement is gaining momentum and that it is a potential threat to Amazon's dominance in the cloud computing market.

Investors should be aware of the potential risks to Amazon stock and should monitor the situation closely.

In addition to the #CloudExit movement, there are a number of other factors that could affect Amazon's stock price in the future, including, increased competition from other cloud providers, and economic downturns.

Investors should consider all of these factors when making investment decisions.

Read the rest here:
The #CloudExit Movement And What It Means For Amazon Stock ... - Seeking Alpha

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The Nasdaq GEMX Migration Creates Enhanced Scalability, Flexibility, and Resiliency of the Cloud Enabled Infrastructure while Delivering up to a 10% Improvement in Latency

Nasdaq, Inc. announced it has successfully completed the migration of the core trading system of Nasdaq GEMX, one of Nasdaqs six options exchanges, to Amazon Web Services (AWS). The new cloud-enabled market infrastructure, which uses AWS Outposts, delivers up to a 10% improvement in latency and the ability to more seamlessly adjust capacity in response to changing market conditions, ultimately delivering a better trading environment for market participants. GEMX processes 12 billion in daily messaging, 71% higher daily message volume than the MRX Options Exchange, which was migrated to AWS last year in December.

Nasdaq GEMX is Nasdaqs third market to accomplish the move to AWS following Nasdaq MRX in 2022 and the Nasdaq Bond Exchange (NBE) earlier in 2023. Moving markets to the cloud requires the migration of an intricate web of processes, systems and native protocols that are used by multiple layers of the overall capital markets ecosystem. Nasdaq successfully handled enormous volumes of message traffic while managing a wide array of real-time market conditions, ensuring a seamless experience for market participants.

Nasdaq continues to lead in market modernization by delivering cloud-enabled infrastructure and building a more resilient, scalable and accessible financial ecosystem. To meet the rigorous performance, resilience, and regulatory demands for the capital markets, Nasdaq and AWS pioneered an edge computing system leveraging AWS Outposts, a fully managed solution which provides market operators and participants with added agility to rapidly adjust operational systems and strategies, as well as innovation capabilities, to keep pace with evolving industry dynamics.

Additionally, Nasdaq is investing in its primary data center in Carteret, New Jersey, Equinixs NY11 International Business Exchange(IBX), which serves as the center of gravity for Nasdaqs US markets, including its cloud infrastructure. As previously announced, Nasdaq is expanding the existing colocation facility to meet the growing demand of participants that seek proximity to the Nasdaq trading systems. The expanded and enhanced facility will provide the optimal environment for the next generation of compute workloads and offer clients access to a wider range of services and capabilities.

At Nasdaq we take a client centric approach to the adoption and migration of advanced technologies to minimize risk and ensure clients can capitalize on the long-term benefits our modernization efforts deliver, said Tal Cohen, Co-President, Nasdaq. As a leading market operator and global provider of critical market infrastructure we are committed to continuing our journey to modernize the global financial ecosystem and unlocking the power of cloud technologies.

Together, our teams are continuing to help Nasdaq redefine the future of capital markets through close collaboration and use AWS capabilities to deliver measurable benefits for our mutual clients, said Scott Mullins, managing director, Worldwide Financial Services at AWS. We look forward to continuing to work alongside Nasdaq to achieve its long-term goals for operating a flexible yet scalable environment without compromising the performance of critical, ultra-low latency systems.

Nasdaq has been systematic in its efforts to build the next generation of cloud infrastructure for its clients, a major aspect of that effort includes migrating existing Financial Technology solutions and developing new cloud-native platforms. As of November 2023, 106 financial institutions ranging from financial market infrastructures (FMIs), banks and broker-dealers have either deployed or migrated Nasdaq solutions to the cloud, including surveillance, risk management, marketplace services, and clearing solutions. When onboarding financial institutions, Nasdaq takes a client centric approach, offering a tailored experienced that ultimately connects clients to the critical cloud infrastructure. Leveraging the power of cloud, Nasdaq empowers their clients to reliably and flexibly scale their solutions to meet changing market demands, improve resiliency and business agility.

Source: Nasdaq

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Nasdaq Completes Migration of Third US Market to AWS - Markets Media

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