Monday, June 1, 2020

IDC: OCP-compliant hardware to grow at a 16.6% CAGR

Worldwide revenue from the Open Compute Project (OCP) infrastructure market will reach $33.8 billion in 2024, according to a new report from IDC, hitting a compound annual growth rate (CAGR) of 16.6% over the 2020-2024 forecast period. The forecast assumes a rapid recovery for this market in 2021-22, fueled by a robust economic recovery worldwide. However, a prolonged crisis and economic uncertainty could delay the market's recovery well past 2021, although investments in and by cloud service providers may dominate infrastructure investments when they occur during this period.

"By opening and sharing the innovations and designs within the community, IDC believes that OCP will be one of the most important indicators of datacenter infrastructure innovation and development, especially among hyperscalers and cloud service providers," said Sebastian Lagana, research manager, Infrastructure Systems, Platforms and Technologies.

"IDC projects massive growth in the amount of data generated, transmitted, and stored worldwide. Much of this data will flow in and out of the cloud and get stored in hyperscale cloud data centers, thereby driving demand for infrastructure," said Kuba Stolarski, research director, Infrastructure Systems, Platforms and Technologies at IDC.

Some highlights:
The compute segment will remain the primary driver of overall OCP infrastructure revenue for the coming five years, accounting for roughly 83% of the total market.
Despite being a much larger portion of the market, compute will achieve a CAGR comparable to storage through 2024. The compute and storage segments are defined below:
Spend on computing platforms (i.e., servers including accelerators and interconnects) is estimated to grow at a five-year CAGR of 16.2% and reach $28.07 billion. This segment includes externally attached accelerator trays also known as JBOGs (GPUs) and JBOFs (FPGAs).
Spend on storage (i.e., server-based platforms and externally attached platforms and systems) is estimated to grow at a five-year CAGR of 18.5% and reach $5.73 billion. Externally attached platforms are also known as JBOFs (Flash) and JBODs (HDDs) and do not contain a controller. Externally attached systems are built using storage controllers.