Who Are The Decentralized Cloud Players

2017 and 2018 brought out severe decentralized cloud players in several countries worldwide. The Chinese Xunle I seems to have a head start by having already deployed more than a million OneThing Cloud servers among its customers, allowing the storage of personal data and files on 1000 petabytes.

What Is The Interest Of The Decentralized Cloud

Reduce Hosting And Runtime Costs

The goal of the decentralized cloud is to provide a similar solution to existing centralized clouds like AWS while achieving a significant cost reduction. The two most advanced players are Xunlei and iExec, an INRIA spin-off that launched its platform in November 2017. iExec presents itself as a computing power marketplace and allows users to buy and sell their computing power peer-to-peer like a tangible commodity. Based on an utterly liberal system leaving room for the development of competition, iExec’s cloud allows developers of decentralized applications to host their dApps and execute their Ethereum intelligent contracts at attractive and increasingly competitive prices worldwide. as new suppliers join the platform.

The solution also makes it possible to circumvent the scalability problems of the Ethereum network, which does not offer enough computing power to run all of its dApps efficiently. iExec provides publishers with an SDK to create applications directly on the platform. At present, the iExec Appstore presents about 40 applications.  Today, one of the main challenges is to seek to forge partnerships with different pet computing power providers to offer a sufficiently large offer on the marketplace. iExec currently works with Genesis Mining (cloud mining), Stimergy (connected boilers), Cloud&Heat (private cloud), and Qarnot Computing (servers-radiators).

Improve Hosting Security

In addition to the lower use costs, the decentralized cloud represents a significant advantage, mainly when it is based on a blockchain: it is, of course, a question of the storage’s security and the data’s execution. On iExec, the blockchain consensus mechanism is the Proof of Contribution and is based on an off-chain protocol. Each publisher pays a deposit and then is assigned a reputation score based on their ability to deliver a cloud service successfully. Everyone only gets their deposit back if they have delivered their service successfully.

Nevertheless, the distributed nature of a decentralized cloud represents a real challenge in terms of security. To address this problem, iExec has optimized its platform to use Intel SGX, which allows the execution of code and data in protected enclaves. The start-up is now developing with Intel SGX a complete end-to-end solution integrating SGX technology for their decentralized cloud. This device guarantees that each dApp is executed correctly and that each data is treated as expected without anyone having access to it and being able to falsify it, including its owner. iExec also works with other SX vendors, such as Scone and Fortanix.

The Decentralized Cloud, A Complex Deployment

If the decentralized cloud opens the doors to a more competitive, fairer ecosystem and greener, it remains much more complex to set up than a centralized cloud. This technical challenge requires heavy investment, estimated at $100 million in R&D for the Xunlei company since 2014. To host an application on a decentralized cloud, the workloads must be eligible for a distributed computing architecture. 

The decentralized cloud is, therefore, not always suitable for all applications, as it is sometimes difficult to set up. However, we find this type of architecture in various projects: financial prediction, learning AI (where the potential market is huge), or even graphic rendering. Processing is, of course, more complex than in the case of a centralized IT infrastructure, and some web environments will also be much more challenging to distribute.

The Advancement Of Distributed Ledger Technologies

Despite this complexity, distributed ledger systems (beyond the cloud domain) have experienced such a boom over the past two years that we are now in a position to ask ourselves if the platform economy as we know it today could last for the next 10 or 20 years. The decentralized web has every chance of progressing as much as the decentralized cloud in the face of growing rejection of the oligopolistic, even monopolistic excesses of the market giants.

Also Read: The Five Great Benefits Of Cloud Computing

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Data centers face significant challenges in cooling server rooms, primarily due to the facilities’ increased power and energy density. For many experts, the solution lies in the different liquid cooling technologies, including direct liquid cooling (DLC), which dissipates heat through a liquid that comes into contact with thermal transfer devices or by immersing the equipment in the fluid.

This cooling approach is much more powerful and efficient than air cooling. Still, until relatively recently, it has been used primarily on some high-performance computing (HPC) platforms, where IT density is much higher than conventional. And there are only a few examples of data center operators that have applied this technology at scale, such as OVH Cloud.

According to a survey conducted by the Uptime Institute in the first quarter of 2022, one in six operators is already using DLC ​​. Still, experts anticipate this technology will expand, gradually replacing other cooling systems in many data centers. They have found that the liquid cooling market is beginning to concentrate on DLC solutions in anticipation of future demand. There are now many more options available than a few years ago.

On the one hand, applications that require high-density IT, such as high-performance technical computing, big data analytics, or deep neural networks, are expanding. In addition, operators are under increasing pressure to increase their efficiency and reduce their energy consumption and environmental impact. According to experts, this will speed up the transition from air cooling to liquid cooling, especially DLC.

Although the Uptime Institute researchers believe that the main driver of this change will be the evolution of IT infrastructures in data centers towards higher computing density, the new server processors are more powerful and run hotter, so they will require much more efficient solutions to continue increasing computing capacity without skyrocketing consumption. Therefore, experts anticipate that air cooling will become impractical by the middle of this decade, and DLC may be the best alternative.

But while the arguments for the move to DLC cooling seem strong, this transition involves several technical and business challenges that cannot be ignored. The first problem is the lack of standardization on DLC systems, an area where there are no standards when it comes to coolants or the mechanical systems used to move them through piping circuits. Organizations like the Open Compute Project and big companies like Intel are already working on this problem. However, they are still years away from developing standardized DLC products that can reach the mass market.

Meanwhile, data center operators will opt for the solutions that suit them best in terms of performance, cost, and ease of implementation. Manufacturers of these systems have come a long way in this field and now offer solutions that are easier to install and operate. Although reasonable standards for the industry are being developed, they must resolve logical doubts about issues such as performance metrics, among others.

Currently, analysts at the Uptime Institute recognize six categories of commercial DLC systems, although they believe that more will emerge in the future. These are cold water plates, single phase dielectric cold plates, two-phase dielectric cold plates, chassis immersion, single phase immersion, and two-phase immersion. There are currently more than a dozen specialty providers, usually focusing on one of these categories.

For their part, as the results of this survey indicate, most companies are open to switching to DLC and plan significant adoption of this technology in the coming years. But at the moment, many are unclear about which option they will choose or if they will take different forms of DLC, and this generates some uncertainty about the behavior of the DLC system market in the future.

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Flash technology is the underlying storage medium that answers these questions and enables you to get the most value from your storage investments. However, what main aspects should you consider when it comes to improving the management of your company’s data storage?

Performance, Increased In Flash Storage

New storage systems have eliminated the spin-up latency applied by disk systems, resulting in a significant increase in data center performance. For this reason, it is ideal for online processing, I/O intensive workloads such as virtual environments, or ample data storage. The enormous increase in real-time processes, driven by both mobility and digitization, has made performance the second most important challenge for businesses and organizations and, in many cases, almost as big a challenge. Important as capacity.

Scalability, Future-Proof Flash Storage

The requirements and workload of businesses and organizations should drive the design and size of the flash deployment. The functionalities of mission-critical applications increase significantly with all-flash technology. In contrast, for other applications, a hybrid solution is more suitable to get the most out of technology solutions concerning the impact that their costs have on the bottom line. Flash can be used with 100% flash arrays or combined with other storage technologies so that flash can be allocated to performance-demanding applications through tiering.

Enterprise-Grade Availability

Professional solutions on an international scale combine data recovery with business continuity and data protection. Continuous operation achieves up to ~99.9% availability.

Infrastructure

To run major business applications and services, it is advisable to implement fully optimized and ready-to-use platforms that are entirely flash-based. Horizontal and vertical scaling is always consistent and immediate as storage is performed in pools that expand on demand. It is also straightforward to use and is designed for maximum operational simplicity. Finally, mixed workloads are consolidated across all workflow applications, both productive and non-productive.

Low Cost And Fast RoI

Flash technology allows you to store up to six times more data than traditional disk-based storage systems. Over three years, this leads to cost reductions of up to 80% with 5.8x lower storage management costs. On the other hand, the implementation is straightforward. There is an evident reduction of data online and a remarkable reduction of complexity in administration; lower power requirements and less space and cooling capacity are needed. By enabling flash to reach new levels of storage efficiency, scalability, and availability, companies can improve their business from end to end and meet the new challenges of big data, social media, mobility, and the cloud.

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What Differentiates Smart Data From Big Data?

As we all know, data has become the most valuable asset for companies since, thanks to this information, we can predict the future behavior of our potential customers and offer them what they need at the exact time and place, thus increasing sales.

But to know the differences between Big Data and Smart Data, we must understand what these terms refer to.

As we told you in our previous article “The Big Data: Present and future for companies” if you have not yet read it, we recommend that you do so, it refers to the large amount of both structured and unstructured data that flood a company every day.

But as we have already mentioned on other occasions, the important thing is not the amount of data you have. Still, the analysis carried out that information and the decisions made. It is in this area where Smart Data helps us.

Smart Data is also a technique responsible for collecting large amounts of data instantly, but unlike Big Data, the system is also capable of analyzing all this information.

Smart Data is presented as a perfect tool to collect information, analyze it, understand it and give a helpful response based on that data. For this reason, many experts are defining Smart data as the improved version of Big Data, thanks to its ability to find solutions to solve company problems instantly.

Benefits Of Incorporating Smart Data In Your Organization

As we have already mentioned, the main advantage offered by the Smart Data technique is the ability to know the needs of customers to provide them with just what they need. But in addition, this technique offers many other benefits:

• Smart Data provides less data but is of higher quality.
• It allows more precise decision-making since it performs a detailed analysis of the stored data.
• It is multi sectoral: it can be applied in all business sectors.
• It reveals new trends, facilitates flexibility, and allows insight into future customer behavior.
• Provides more excellent knowledge of the sector and your customers, facilitating new products or solutions that better suit their needs.

In short, Smart data does not refer so much to the volume of data that a company has but to the importance of analyzing that information to make the right decisions for your business.

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Among them is the need to reduce latency in data transmissions since there are delays in communications over the Internet and between the cloud providers’ infrastructure. For mission-critical applications, this may be unacceptable for many use cases. Another problem comes from the regulations on data sovereignty established by many countries, and cloud providers cannot always guarantee that the data is physically housed in data centers located within the established borders. And, if you need access to this information found abroad, new costs may arise for its transmission, and possible penalties may be incurred.

In another vein, the cloud has become one of the targets that cybercriminals focus on, and there have already been serious breaches of data stored by large cloud providers. Recent studies show that 40% of organizations have experienced cloud-hosted data breaches in the last 12 months, and many are very concerned about the potential risks ahead. Finally, there is the issue of cloud cost overruns. Although cloud storage prices are initially low, as the volume increases, higher rates are applied. If data access is frequent, additional costs are added, something that has attracted the attention of many customers in the last two years.

Faced with these challenges, many companies are beginning to rethink their data storage strategy again. Leaving the cloud is unthinkable today and probably in the future, but combining the cloud with on-premises container storage can bring many benefits. As DCIG experts explain in a recent article, the increased cost of scaling cloud storage is not sustainable in the long term. It puts pressure on margins that, in many cases, are impossible to align with business goals. As a result, on-premises or hybrid cloud object storage solutions are beginning to be perceived as the best option in the future for many businesses. The main reason is cost.

Responding To The Growth Of Unstructured Data

Object storage technology provides a perfect way to deal with the exponential growth of unstructured data, and local storage can be a great way to tackle the problem. This data on-premises can be quickly moved from cold storage to a live location intended to ensure faster access, and a more efficient, organized, and higher-performing primary storage infrastructure can be achieved.

High-Performance Object Storage

Many organizations are moving to data-intensive applications that require a high-performance storage platform. Cloud services can provide this for applications in the cloud, but not for those running on-premises or at the edge, where response needs to be immediate. Therefore, having object storage on-premises is vital to enable high-performance use cases, such as those that rely on unstructured data for IoT device network management, big data analytics, artificial intelligence, or machine learning.

Guaranteed Data Sovereignty

Ensuring compliance with data sovereignty regulations is becoming very difficult for companies that host large volumes of data in the cloud in the form of objects. Although cloud providers are trying to expand their IT footprint in regions such as Europe, they do not always guarantee that data is physically within the borders established by law. On the contrary, storing objects locally allows 100% data sovereignty to be certified and applying data protection strategies that comply with current regulations.

More Efficient Edge Computing

Object storage is the most effective way to host data from IoT devices, cameras, sensors, and other devices used in many industries and run applications locally using edge computing applications. In these cases, having local object storage is the best way to guarantee the performance of these applications, which in most cases feed on unstructured data, and whose operation must be in real-time or near real-time.

Cloud-Native Workloads

Many companies use on-premises object storage to develop, test and deploy applications for cloud computing architecture. These cloud-native workloads can run anywhere—in the data center, on edge, or in the cloud—but building them on-premises allows developers to more easily and quickly resolve issues before the transition to the final environment, without depending on the availability of cloud resources. And, by having reliable local storage, it is possible to move these applications to this environment to work on them when necessary.

More Benefits With Software-Defined Object Storage

Many companies have changed the focus on their IT infrastructure, adopting software-defined data center solutions, which allow storage, computing, and network resources to be managed in a more versatile and efficient way through their abstraction and virtualization. This provides new capabilities that, if possible, are greater in the case of object storage. DCIG experts highlight that software-defined storage solutions allow more flexible vertical and horizontal scalability, which helps to adapt more dynamically to the needs of each moment.

In addition, SDS solutions achieve greater efficiency and energy savings than traditional storage systems and allow the useful life of existing storage media to be increased. Finally, they highlight that software-defined storage provides significant advantages in data management, permissions and costs and offers new opportunities to improve performance and optimize the use of an organization’s data repositories.

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The solid-state storage market is making significant progress thanks to the SSD industry’s constant advancements and improvements to other computer systems. Manufacturers are leveraging the superior capabilities of solid-state memory versus HDDs to expand their presence beyond smartphones, tablets, and portable storage devices.

In recent years, SSDs have become the most widely used solution for the primary storage of laptops and desktops and servers. They have expanded their presence in storage arrays for data centers and other IT environments. In a recent article from the Enterprise Storage Forum, the experts present five trends related to SSDs that will significantly impact the storage industry and market next year.

New PCIe 4.0 SSD Drives

The new generation of the PCI Express interface (PCIe 4.0) is generating a wave of changes in the computer industry, affecting SSD technology. The increased bandwidth of the new bus raises the potential capabilities of the devices connected to it and has led manufacturers to launch new products certified for PCIe 4.0.

Thanks to the fourth generation of PCIe, users can get more out of their pre-existing SSDs and optimize their consumption or acquire new models with a much higher bandwidth, which opens up more possibilities for different applications. PCIe Gen 4 doubles the data transfer speed of the previous generation, and the following year will see an increase in demand for all certified devices, from motherboards to graphics modules and SSDs.

The New Generation Of Optane Drives

After abandoning its line of development and manufacturing of 3D NAND memory, Intel continues to bet on the evolution of its different categories of 3D Xpoint memory under the Optane seal. This memory is used to increase work memory, complement DRAM, provide high-speed storage and accelerate workflows based on traditional HDD storage.

Experts say that this coming year will see the light of new Optane SSD units compatible with PCIe 4.0, focused on data centers and workstations and new applications entering this market. For example, Chia cryptocurrency mining and new categories of enterprise storage seek solutions faster than NAND, despite the higher cost.

SAS SSD Rise

With the arrival of new SSD models for SAS interfaces from some of the leading manufacturers in the industry, experts say that the SAS standard is not going to disappear in favor of other interfaces such as PCIe 4.0. They expect demand for SAS SSD drives like those launched by Samsung in April 2021 to increase this year. and write than SATA, enabling you to improve the capabilities of many legacy infrastructures in enterprises and data centers.

NVMe and NVMe-oF SSD

The development of the NVMe protocol and interface and its translation to networks via NVMe-oF is generating new lines of business in the storage industry, from hard drive manufacturers to AFA array providers. Since its appearance, this technology has gained a lot of presence in the enterprise storage market, and experts are convinced that in 2022 the sales of NVMe SSDs and certified NVMe-oF devices will grow in various market segments.

For example, in data centers, expanding NVMe-oF support to Ethernet, Infiniband and Fiber Channel networks will generate a drive to modernize storage networks. Most of the data in the facilities are stored on HDD drives and arrays and tape media. But the infrastructure for specific applications and use cases is being modernized with solid-state drives, and data centers will increasingly rely on this technology.

SSD Storage On The Edge

One of the expansion focuses of solid-state storage is the edge IT infrastructure. In many cases, speed and latency requirements are demanding, and low form factors are required for all computing components. Industry experts are working on multiple storage lines, including successfully combining SAS and NVMe technologies and developing compact, high-performance NVMe solutions specifically designed for edge computing.

This will quickly find its place in certain high-performance use cases, such as AI applications at the edge, increasingly in demand by companies in different industries, from telecommunications to manufacturing, healthcare or retail. In 2021, some progress has been made in this regard, and the industry expects further improvements in 2022.

Also Read: The SSD Market Continues To Take Advantage Of Telecommuting And Digitization

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The Cloud New Challenges, New Risks

For many companies, cloud computing represents a boon, on the one hand. After all, it allows savings on the purchase of equipment and licenses, and on the other hand, it simplifies processes and organization. By improving accessibility to data and SaaS applications, the Cloud makes it possible to promote remote work and better collaboration between different teams.

Quick and straightforward to set up, it gives businesses access to previously impossible tools for them to buy. And where security was once an issue, it has been dramatically improved in recent years. So much so that the Cloud is now used to protect data and ensure the security of software tools. However, loopholes still exist, hence the need for many countries to adopt new regulations. Their objective? Always better secure data hosted in the Cloud.

The GDPR Regulation Of Personal Data In The EU

The GDPR, or General Data Protection Regulation, aims to regulate the processing of personal data throughout the European Union. Regardless of its size, nationality, and sector of activity, each organization is affected by the GDPR when it handles personal data stored in the Cloud.

GDPR Rules For Businesses

The GDPR has put in place several rules to be observed by companies collecting and processing their data:

• Transparency of data processing: the use made of data must be indicated to users.
• Controlled data collection: only the data essential to the proper functioning of the company should be collected.
• The shelf life: the shelf life must be limited in time.
• Data security: data stored in the Cloud must be secured using powerful tools.

GDPR Rules For Processors

Communication and marketing agencies, IT security companies, hosting companies, maintenance companies, software integrators, and digital service companies are particularly affected. All must:

• Provide advice to their clients on how data is collected and processed;
• Keep a record of the activities carried out;
• Appoint a data protection officer (in some instances only);

Implementing the General Data Protection Regulation has made it possible to offer a valuable legal framework to professionals and harmonize data protection rules.

The Cloud Act Regulation Of Personal Data In The United States

Created in the United States in 2018, the Cloud Act corresponds to a set of laws directly opposing the regulations set out in the GDPR. While the second objective is to protect the privacy of consumers through a set of measures governing the collection and processing of personal data, the Cloud Act allows the United States to use the personal data of foreign individuals freely. All companies of American nationality or based on American soil are concerned. The laws enshrined in the Cloud Act allow free access to personal data stored in the United States and abroad.

Concretely, the Cloud Act allows any organization to transfer personal data to the American authorities without delay and opposition, even the person concerned by the data being notified.

Regulations Around Data Hosted In The Cloud By Sector

Health  

Health data is in particular subject, and rightly so, to very restrictive regulations. European regulations require that all stored data collected during various activities such as care, follow-up, or diagnosis must be certified or approved.

Finance

It must be said that, like health, personal data related to finance is sensitive data. The financial world has long shied away from public cloud services, fearing security breaches. Finance applications such as Hosted Drake, QuickBooks Hosting etc. consists of sensitive information and are supposed to be accessed securely using technologies like Cloud based Desktop to avoid any kind of breach. Today, more and more banks are venturing into storing their data in the Cloud in compliance with banking regulations. They use a hybridization technique, aiming to meticulously choose which data is stored in the Cloud and which information is traditionally stored.

Hosting personal data in the Cloud: changing regulations the regulations related to the hosting of personal data in the Cloud are constantly evolving, and for a good reason, the risks are also evolving. Now, the use of cloud services from US providers is questioned and could soon become illegal. The implementation of several security measures could become a new condition for companies to have the right to store their data in the Cloud. Segregation of data between different cloud providers from other countries, data encryption through complex techniques, pseudonymization of data. These measures are difficult to put in place but could soon become essential to fight against cybercrime problems among others.

Also Read: IT Security: How SMEs Can Secure The Cloud

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As companies progress in digitization through new technologies, they need data storage systems capable of drawing from various sources and delivering information more quickly and efficiently. The requirements for artificial intelligence, machine learning, big data and other innovations are increasing, and IT administrators are turning to object storage to improve performance over traditional file storage. But performance is still a limiting factor, and flash storage systems are getting a better look.

In a recent survey they interviewed IT decision-makers, 90% are convinced that object storage based on All systems Flash will replace traditional primary storage in the next five years. Thanks to advances made by manufacturers in recent years, this technology provides comprehensive data protection and faster access to massive volumes of unstructured data, which has great benefits for today’s large workloads.

This research reveals that the market is at a good point of maturity to make this change, with these three countries standing out in particular. In France, 76% of those surveyed believe that this transition will take place in less than three years, a view shared by 72% of Germans and 43% of British.

Speciale explains that “object storage has begun to encompass flash media, and because the cost of flash goes down, it’s likely that it’ll become the default medium for object storage, and can make object storage the new main storage for a way wider range of applications”.

It highlights that All-Flash systems-based object storage offers performance unmatched today, especially for accelerating AI and machine learning environments, and provides more power for business intelligence and analytics applications while enabling greater leverage IT infrastructure capabilities.

Other interesting data from this study are that, the IT, technology and telecommunications and retail, distribution and transport sectors see this transition to flash-based object storage closest and believe that it will take place. Done in a year. Most of the rest of the sectors see it very differently and believe that it will be done within 3 to 5 years.

Also Read: 5 Cool Instagram Features For Stores

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While HDD sales are increasing thanks to overall data growth, solid-state hard drives are doing so at a rate, if anything, faster. Far from ending the turn of the year, in 2021, laptop sales have continued to grow. Experts believe that they could even exceed those of last year once companies upgrade equipment beyond covering the infrastructure needs for teleworking. 

According to experts, this trend, which dominated the SSD and laptop market last year, is being joined by the growing demand from companies focusing on new ways of working on the go. In the view of Jeff Janukowicz, vice president of solid-state drive research and enabling technologies at IDC, “The pandemic has accelerated the need for transformation, and global demand for SSDs has increased due to this trend as both consumers and companies have sought to take advantage of the benefits of technologies”.

Thus, IDC experts believe that the trends that have driven the market last year will continue throughout this year, and their impact will be felt until 2025. During this time, shipments will increase in the main SSD categories. The new formats are gaining positions in desktop computers and other platforms typically dominated by HHD hard drives.

The figures they have presented in their latest report suggest that global shipments of SSD drives will increase at a CAGR of 7.8% between 2020 and 2025, while revenues from this storage segment will do so at a CAGR of 9.2%. , being able to reach 51,500 million dollars by the end of the period. As for the capacity shipped, thanks to the constant progress of NAND Flash technology, it is expected to increase to a CAGR of 33% in these years, which will accelerate the erosion of the price per gigabyte, something that customers have been waiting for for years.

As IDC analysts explain in this report, SSD prices remain highly volatile. They will remain high in the near term, as vendors take advantage of the semiconductor shortage to recover from the depreciation that hit the industry in fiscal years. Previous and they highlight that the advances that are taking place in the manufacturing processes will improve the manufacturers’ profitability. However, first, they will have to cover the high costs that the latest technological leaps in the industry are having, such as adopting manufacturing processes using lithography. 

In any case, in the coming years, the demand from traditional customers and new industry segments that are switching to SSDs will continue to grow, even more than previously anticipated by experts. This is due to the unexpected emergence of teleworking and remote study, which has boosted the market for ultralight laptops and tablets. Experts did not expect it to occur so abruptly.

In terms of business demand, SSDs are part of the significant changes that come with innovations like artificial intelligence, edge computing, and other emerging technologies gaining positions in enterprise IT. IDC estimates that declining prices will drive a massive expansion of SSDs as the preferred medium for many applications, jumping from maximum performance use cases to new realms that have traditionally based storage on traditional HDDs.

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Cloud services have become one of the pillars of digital transformation, creating substantial business opportunities for providers, especially public cloud leaders. These companies are increasing their presence in new emerging markets where digitization is progressing rapidly, for which they will invest in equipment for new data centers. Last year, economic difficulties limited the sector’s possibilities for growth, but as business activity recovers, the demand for servers will accelerate.

According to experts, the demand will be driven mainly by cloud providers, especially AWS, Google Cloud Platform, which will increase their purchases between 25% and 30% compared to last year, up to more than 50% of the entire market. And they will be closely followed by Microsoft Azure, which plans to increase its IT footprint in different markets to meet growing demand from its enterprise customers. This will benefit ODM vendors, who manufacture directly for hyperscale operators’ data centers. But the business revival will also pay off in the OEM server market.

In any case, TrendForce analysts say that the cloud market will continue to grow unstoppably this year and to expand into large markets such as Europe, the top three CSPs have started collaborating with their local counterparts and telecom operators from several countries to comply with current regulations on data protection and sovereignty.

This will significantly affect the server supply chain, where manufacturers are facing a growing shortage of semiconductors such as processors, memory, and solid-state storage, among other components. Companies like Google and AWS are adopting more aggressive purchasing strategies. Simultaneously, Microsoft is more cautious when it comes to purchasing servers because they are awaiting the massive arrival of Intel’s Ice Lake server platform, which will be produced in the dough will still lag a bit.

A separate case is the China market, where major cloud providers will follow a more restrained pace in acquiring servers, and Trend force experts expect demand to increase 10% over last year. This is the path that the leading operators such as Baidu or Tencent will follow, which will show similar growth.

Simultaneously, Alicloud will maintain the pace of acquisitions of last year, and other firms such as Bytedance could reduce purchases by up to 15%. Finally, experts believe that as business customers become more familiar with cloud services and related technologies, new opportunities will emerge for CSPs. These will go beyond the traditional IT infrastructure fields such as computing, networking, and storage.

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