Market Overview

IDC Forecasts Composable/Disaggregated Infrastructure (CDI) Market to Reach $3.4 Billion in 2022

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Datacenter infrastructure is in state of transition thanks to digital
transformation (DX) initiatives at most modern enterprises. Firms are
demonstrating an ever-growing appetite for next-generation applications
as a vehicle for aggressively transforming themselves. These
applications are designed differently and therefore require a shift in
how the infrastructure is provisioned and managed. At the same time,
traditional enterprise applications function to support internal
operations such as ensuring business continuity and service uptime. Both
applications have different infrastructure requirements. IT
infrastructure (of yesterday and today) can be rigid and siloed, making
it difficult for IT to deliver quickly on the demands of both sets of
applications concurrently. The application-centric approach to IT —
building environments that require new levels of scale, automation, and
flexibility — can be effectively delivered via composable/disaggregated
infrastructure (CDI), a new class of converged infrastructure that
brings together compute, storage, and networking elements and enabling
software to provide an on-premises cloud-like experience.

A new report from International Data Corporation (IDC)
sizes this nascent market at just over $300 million in 2017. However as
new and incumbent IT vendors enter this market, each making a unique
case for solving IT infrastructure challenges, IDC projects this market
to aggressively grow at a five-year compound annual growth rate (CAGR)
of 58.2%, reaching nearly $3.4 billion in 2022. Even with such
aggressive growth, the CDI market segment is estimated to be just 4.1%
of the entire server market in 2023, meaning that there is a huge upside
for vendors to aggressively invest in CDI technologies to gather a
bigger market share in subsequent years.

IDC defines composable/disaggregated infrastructure (CDI) as an emerging
category of infrastructure systems that make use of high-bandwidth,
low-latency interconnects to aggregate compute, storage, and networking
fabric resources into shared resource pools that can be available for
on-demand allocation. These systems employ an architecture, which is
often referred to as rack-scale architecture, to break down the physical
boundaries of the server systems, enabling compute, memory, and storage
resources inside each node to be available for on-demand allocation.
Individual IT assets are aggregated into fluidly managed resource pools
that can be dynamically provisioned and deprovisioned via a common API.
"Composable" and "disaggregated" are two different but complementary
concepts with different evolutionary trajectories. The enabling
technologies for these systems are in different stages of maturity:
Some, such as common application programming interfaces offering
infrastructure-as-a-code capabilities, are becoming available, while
others, such as silicon photonics, are still in development.
"Composability" is driven at the software (API) level, and
"disaggregation" is primarily driven at the hardware level. Therefore,
"composable infrastructure" software can hypothetically operate on any
type of hardware if that hardware supports the composable API.

"New IT on-premises infrastructure deployments, mostly in the form of
private cloud, will fuel aggressive investments in
composable/disaggregated infrastructure," said Ashish
Nadkarni
, group vice president for Infrastructure Systems, Platforms
and Technology at IDC, which covers compute and storage infrastructure.
"The maturity of newer low-latency and high-bandwidth fabrics such
NVMeoF and Gen-Z, and associated interconnects will accelerate the
development of newer CDI products and solutions."

The report, Worldwide
Composable/Disaggregated Infrastructure Forecast, 2018-2023
(IDC
#US44224418), presents IDC's inaugural forecast for the
Composable/Disaggregate infrastructure market. Revenue is presented for
the overall market and each of the two market segments (disaggregated
hardware, and composable software). The report also provides a market
overview including drivers and inhibitors, as well as challenges and
advice for technology suppliers.

About IDC
International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC's analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of International Data Group (IDG),
the world's leading media, data and marketing services company that
activates and engages the most influential technology buyers. To learn
more about IDC, please visit www.idc.com.
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