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Revenue shifts of your clients: The growing investments in 5G, edge computing, hybrid cloud infrastructure, and virtualized technologies are prompting enterprises to invest in next-generation storage devices, such as storage area network (SAN) and network-attached storage (NAS). During the COVID-19 pandemic, aggregate traffic volume continues to be 25% higher than pre-pandemic levels, largely fueled by a surge in video conferencing. The Global Video Conferencing Market was valued at USD 4.02 billion in 2019 and is projected to reach USD 8.35 billion by 2027, growing at a CAGR of 9.6% from 2020 to 2027. This will necessitate investments by companies in data center and enterprise storage devices to manage, process, and store the huge volumes of data generated.

Unknowns: The rise in digitalization, edge computing, software-defined datacenters using virtualization technologies, robotics and automation in datacenters, and 5G-based edge datacenters are expected to be game-changers for the data center storage market. The spend on private 5G installations is expected to increase sharply, as over 200 companies test private 5G deployments by the end of 2021. This will accelerate investments in 5G-based edge datacenters, opening up significant opportunities for datacenter storage providers. 
Interconnections: The growing investments by technology companies in telecom cloud service providers are accelerating the adoption of 5G and edge computing applications and unlocking diverse applications such as cloud gaming, autonomous driving, and robotics. For instance, Microsoft acquired Affirmed Networks and Metaswitch to build a secure and trusted cloud platform for operators by leveraging technological expertise on 5G and edge computing. In 2019, AT&T announced the integration of 5G with Microsoft Azure to enable next-generation solutions on the edge, unlocking new opportunities for cloud gaming, drones, and AR applications. These developments are expected to create new revenue generation opportunities for datacenter service providers and equipment providers.