Technology

Pioneering the Future: DCIM's $6.3 Billion Trajectory and IT-OT Convergence

LONDON, June 3, 2024 — The latest market analysis from Omdia research unveils a remarkable projection for Data Center Infrastructure Management (DCIM), anticipating a market value surge to $6.3 billion by 2030. Illuminating the multifaceted roles DCIM plays, from managing infrastructure equipment in remote locales to governing extensive hyperscale data centers, this development positions DCIM solutions as critical for robust and efficient infrastructure oversight.

Figure 1: How Omdia considers the DCIM market

Optimizing Power and Cooling: The IT-OT Convergence

At the heart of operational responsibilities, the management of power and cooling systems traditionally falls within the domain of Operational Teams (OT) rather than IT departments. The primary goal of these teams is to ensure the resiliency and availability of critical infrastructure. Yet, the rising significance of these aspects has initiated a transformative convergence between Information Technology (IT) and Operational Technology (OT). This pivotal development is meticulously chronicled in Omdia's report on DCIM Market Landscape: The role of DCIM in IT and OT convergence.

Further insight is offered by Omdia's IT Enterprise Insights: IT Spending & Sourcing 2024 survey, which casts light on the strategic budgetary planning for IT necessities in the current fiscal year. Echoing a consistent pattern observed in prior years, the data disclosed an inclination toward the maintenance of existing technology, with 65% of IT budgets dedicated to this endeavor. A smaller portion of 18% is allocated to the expansion of current services, while transformative initiatives command 17% of the budget for 2024. These allocations underscore the enduring challenges faced by organizations due to increasing labor and energy costs. Over the coming five-year period, Omdia anticipates an escalation in the adoption of automation, Artificial Intelligence (AI)-enabled optimizations, and service-centric models as strategic solutions to mitigate costs and reallocate investments towards transformational projects.

The Challenges of Energy Price Volatility

The capricious nature of global energy prices remains a dominant concern influencing IT financial plans worldwide, as tariffs differ remarkably from one region to another. Although market analysts predict recurrent price oscillations shaped by an amalgamation of factors—market dynamics, fuel types, regulatory frameworks, meteorological fluctuations, and geopolitical instability—it appears unlikely that energy prices will arrive at a plateau of stability any time soon.

Omdia captures the essence of DCIM through its unique model, which delineates six core capabilities intrinsic to its effective deployment: instrumentation, monitoring, control, management, optimization, and forecasting. These capabilities are systematically categorized into three distinct offerings within the realm of DCIM: foundational, operational, and strategic. This comprehensive structure enables a heightened understanding of DCIP's integral role in the data center ecosystem and its potential to adapt and flourish amidst the evolving demands of technology infrastructure management.

Data Center Infrastructure Growth Amidst Market Flux

In the year 2023, a downturn in server output was recorded, ending a streak of heightened performance noted during the years 2021 and 2022. Attributable to a myriad of causes including the lingering effects of the COVID-19 pandemic, persistent supply chain disruptions, and enduring global geopolitical tensions, this recent decline has not diminished positive market forecasts for the subsequent years. Anticipating robust growth, Omdia foresees an upswing in the demand for IT hardware, especially servers—partly driven by the emergent requirements of Generative AI (GenAI)—and network equipment, aimed to address the needs for faster network interconnections. The expanded technological infrastructure mandates superior monitoring solutions, which in turn, propels the revenue within the DCIM sector.

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The forecast for DCIM is not only promising but substantial, as projected by Roy Illsley, Chief Analyst at Omdia. "DCIM is set to become a $6.3 billion market by 2030," he asserts, "propelled by the dual imperatives of sustainability and the cruciality of optimizing efficiency within the data center spaces, especially as the wave of GenAI begins to exert substantial influence on enterprise clientele."

About Omdia: Empowering Smart Growth with Actionable Insights

As an integral part of Informa Tech, Omdia stands as a beacon of pioneering research and advisory in the technology industry. Leveraging profound understanding of tech markets, Omdia's actionable insights empower organizations to navigate growth with precision and confidence. Through foresight and strategic guidance, Omdia remains committed to contributing to the informed decision-making that shapes the future of enterprises worldwide.

For further inquiries or information, Fasiha Khan can be reached at [email protected].

Source: Omdia

Conclusion

The new era of data center infrastructure management (DCIM) ushers in an age of sophisticated facility oversight, equipment monitoring, and resource optimization. As global data center operations expand in size and complexity, the reliance on advanced DCIM solutions will only intensify. The convergence of IT and OT, fueled by the need to enhance system resiliency and manage ballooning energy costs, signals a paradigm shift in how enterprises approach the stewardship of their technological resources.

The compelling insights revealed by Omdia paint a lucid picture of a market poised for significant expansion. As the forces of sustainability and efficiency converge with the evolutionary demands of GenAI, businesses are set to redefine their infrastructural capabilities through strategic investments in DCIM. This forward-thinking approach not only anticipates the dynamic nature of the tech landscape but also reinforces the need for agile, intelligent systems capable of propelling the data center industry into its next phase of growth.

Despite the uncertainty surrounding energy prices and their implications on IT budgets, the analytical acumen of experts like Omdia’s Roy Illsley provided a lens through which we can foresee the trajectory of this revolutionary market. With forecasts estimating a valuation of $6.3 billion by 2030, the pivotal role of DCIM within the data center sphere is undeniable.

In an era marked by rapid technological advancements and increased emphasis on sustainability, the future of DCIM shines brightly as a cornerstone of data center evolution. Its influence extends beyond the confines of infrastructure management, heralding a convergence of technologies that will define the efficiency, adaptability, and resilience of next-generation data centers.

With comprehensive research, market analysis, and strategic prognostications, Omdia continues to serve as a bedrock of knowledge, guiding organizations towards informed growth and technological excellence. As enterprises grapple with the dual challenges of maintaining and expanding their IT landscapes, Omdia's insights offer a prism through which they can envision a path to success—a path where efficiency, optimization, and innovation converge to create data centers that are not only powerful and persistent but also prepared for the opportunities and challenges that lie ahead.

In essence, the DCIM market's $6.3 billion trajectory by 2030 illustrates the culmination of concerted efforts to harmonize the expanding realms of IT and OT. The strategic intersection of these domains reflects an industry at the cusp of a newfound equilibrium—one that champions sustainability while relentlessly pursuing operational excellence. As we pivot towards a more interconnected and automated future, DCIM stands as a testament to humanity's unyielding quest for progress, serving as both the compass and catalyst for the continuous evolution of data center operations.

The findings and projections shared by Omdia not only underscore the tremendous potential that lies within DCIM but also reinforce the compelling need for innovation in the way we manage and optimize data centers. As we delve deeper into this transformative era, where every byte of data and every joule of energy counts, DCIM emerges as the linchpin of a smarter, greener, and more resilient digital infrastructure.

In closing, the journey of DCIM from a niche domain to a multi-billion-dollar industry embodies the transformative potential of technology. By fusing insight with foresight, adapting to market demands, and embracing the convergence of IT and OT, organizations are equipped to lead the charge towards an efficient, environmentally conscious, and economically viable future for data centers around the globe.

For additional resources and information on DCIM and the comprehensive market analysis provided by Omdia, interested parties are encouraged to explore the informative links provided throughout this article.