Blade Server Market size trends during the forecast period 2021-2027 led by the need to improve productivity and minimize power consumption across current data center infrastructures. Demand for data center blade servers in the market can be attributed to the increasing virtualization needs, growing computer density, and evolving focus on business optimization.
Combining blade servers with the cloud can help enhance efficiency and cut operational costs. These servers have the capability to provide better energy consumption compared to alternate technologies. Cloud providers are utilizing blade servers to achieve private networks with higher bandwidth and resilience. Increasing load on data centers due to wide adoption of virtualization applications will create growth opportunities for the market.
The blade server market could witness commendable growth from healthcare applications through 2027 impelled by growing digitization of patient data in the form of electronic health records (EHR). Also, telemedicine has observed monumental rise in recent years, especially in 2020 owing to the COVID-19 pandemic, as healthcare providers are increasingly preferring remote patient care and consultation. The rise in healthcare information and the need for improved data center infrastructure should bolster the industry outlook significantly.
North America blade server market is expected to be a promising growth over 2021-2027. The region is showcasing a large-scale shift from conventional storage systems to the cloud and edge networks. Numerous tech and IT companies in North America are investing in AI development which demands quick and immediate processing of massive amounts of data acquired in real-time. These trends along with increasing cloud acceptance among small and medium enterprises will augment the regional market trends.
Hewlett-Packard, Cisco Systems, Lenovo, Oracle, Fujitsu, Dell, IBM, and SGI are among the notable names in the blade server industry. The growing trend of virtualization is providing these companies with constant new opportunities. The market players are focusing on offering novel blade server solutions for businesses and enterprises.
Citing an instance, in June 2021, Cisco Systems had rolled out the UCS X-Series blade server platform at the online Future Cloud event. The platform enables IT teams to compute, store, and scale independently and in a way which was previously only possible with rack servers. Cisco aims to offer a solution to replace rack servers with blade servers which can be configured by the organization as per the requirement.
The coronavirus pandemic has transformed the way in which enterprises work and operate. The exponential surge in the volume of employees working from home using videoconferencing and collaboration tools combined with the rise in digital learning has led to increased traffic on networks that connect users to these services. Only cloud providers with a robust architecture that can manage the increased load can deliver an uninterrupted customer experience. This is where blade servers could be a viable solution.
Moreover, in industries like healthcare, where data is the primary asset, reliable storage and management of data requires efficient cloud computing to provide access to online data backup solutions. The rise in EHR utilization and telehealth adoption has generated new opportunities for blade server providers.