Data Center Transformation Market

Microsoft (US) and IBM (US) are leading players in Data Center Transformation Market

The data center transformation market is projected to grow from USD 11.5 billion in 2023 to USD 18.9 billion by 2028 at a growth rate of 10.5% during the forecast period. A combination of technological, business drives, data center transformation, and environmental factors reshape how organizations manage and operate their infrastructure.

The data center transformation market is fragmented and has major vendors based in North America, Europe, Asia Pacific, and other regions. Microsoft (US), Google (US), TCS (India), IBM (US), and Schneider Electric (France), among others, are some of the significant players operating in the data center transformation market. These vendors adopt inorganic and organic growth strategies to increase their market share in the data center transformation space. These vendors benefit financially from various opportunities to acquire high-tech companies. R&D expenditure has consistently grown due to its focus on high-growth opportunities through innovations and cutting-edge technologies such as AI/ML. These market players have invested heavily in CAPEX to acquire more businesses and strengthen their cognitive, cloud, and security capabilities.

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The company has a robust global presence, brand name, and diversified product portfolio in the data center transformation market. It benefits from its extensive intellectual property portfolio, including more patents. The high economies of scale contribute to business capabilities to maintain a competitive position in the market. The increasing demand for cloud-based services provides IBM with a continued business inflow across verticals and regions. The company has a strong presence in the European, American, Middle East & Africa, and Asia Pacific regions. It caters to various industries, including BFSI, retail, IT and telecommunications, media and entertainment, healthcare, government, and education. IBM has received over 3,000 patents for cloud and hybrid cloud technology. IBM researchers developed a method for intelligently distributing data processing components among cloud, edge, and intermediate computing devices. IBM received over 2,300 AI patents as inventors created new AI technologies to assist organizations in expanding their use of AI. As businesses fight to protect sensitive data, particularly in highly regulated industries, IBM inventors have earned over 1,400 security-related patents.


Microsoft Azure is one of the leading cloud platforms globally. It provides a comprehensive set of services for data center transformation, including virtual machines, containers, storage, networking, and AI capabilities. Microsoft offers hybrid cloud solutions, allowing organizations to seamlessly integrate on-premises data centers with Azure. This hybrid approach provides flexibility and scalability. The company has strong domain expertise in all its solutions to cater to its clients better. The company extensively focuses on inorganic growth strategies, including strategic partnerships and acquisitions. Microsoft has a vast ecosystem of partners and third-party integrations, enhancing its offerings and enabling customers to build tailored solutions. The company is expanding in emerging markets through these inorganic growth strategies. Microsoft strongly emphasizes security and compliance, offering tools and services to help organizations protect their data and meet regulatory requirements.

Related Reports:

Data Center Transformation Market by Service Type (Consolidation Services, Optimization Services, Automation Services, and Infrastructure Management Services), Tier Type, Data Center Type, Data Center Size and Region - Global Forecast to 2028

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Data Center Transformation Market Size,  Share & Growth Report
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