• November 3, 2022

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According to a new report from Dell’Oro Group, a trusted source for market information about the telecommunications, security, networks, and data center industries, the telecom server market opportunity is projected to reach $14 billion by 2026. Most of this telecom server market growth will stem from the expansion of edge data centers as stated in the report.

Edge servers ultimately move computational resources and data storage resources closer to end users, helping to reduce latency. The network edge is where broadband access, multi-access edge computing (MEC) and Radio Access Network (RAN) are expected to grow rapidly, exceeding a 50 percent compound annual growth rate (CAGR) through 2026.

Dell’Oro Research Director Baron Fung noted that in recent years, data center IT and telecom network infrastructure has converged.

“Service providers have been replacing dedicated devices with unique hardware architectures in the mobile core network with commercial off-the-shelf (COTS) hardware to virtualize various network functions,” said Fung. “Network function virtualization has the potential to reduce capex through the use of less expensive and commoditized COTS hardware, instead of dedicated or proprietary hardware for network services.”

Dell’Oro Group’s Telecom Server Advance Research Report included a 5-year market forecast for servers deployed by service providers for IT and network functions, and servers deployed by enterprises for MEC applications.

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Sources:

rcrwireless.com/20221102/network-infrastructure/telecom-server-market-spend-predicted-to-hit-14b-by-2026

prnewswire.com/news-releases/edge-data-center-growth-will-push-telecom-server-market-to-14-b-by-2026-according-to-delloro-group-301665598.html