FRAMINGHAM, MA – The market for compute and storage infrastructure for telecoms was sized at nearly $10.8 billion in 2017, says the International Data Corp. However, as telecoms aggressively build out their infrastructure, IDC projects this market will see a five-year compound annual growth rate (CAGR) of 6.2%, with purchases totaling $16.35 billion in 2022.

Data centers in the telecom industry are being converted from vertically integrated stacks to software-defined infrastructure. IDC expects this trend to continue unabated, as telecoms (also known as telecommunications providers, communications service providers, carriers, or telcos) seek to expand their sphere of influence on initiatives such as mobile media delivery, edge computing and the Internet of Things, and connected devices.

"Telecoms are the forefront of the innovation curve," said Ashish Nadkarni, group vice president for Infrastructure Systems, Platforms and Technology at IDC, which covers compute and storage infrastructure. "The shift to a software-defined infrastructure enables them to focus on innovation, drive operations costs down, and continue to differentiate based on the uniqueness of their products and services."

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