Wednesday, January 11, 2012
Data center network equipment market skyrocketing
With cloud computing, virtualization, a push towards sustainability and other trends becoming more prominent in the data center, businesses are making major upgrades to their network infrastructure. Each of these emerging movements demand improved networking, whether it is to support increased data throughput or connect lighting systems to the network. This is creating an environment where storage and data networks are being converged, Ethernet infrastructure is being flattened and bandwidth is being optimized with a variety of tools.
According to a recent Infonetics Research study, revenues in the global market for data center network equipment rose approximately 12 percent sequentially during the third quarter of 2011. The sector also experienced 12 percent year-over-year growth. This expansion impacted every aspect of the data center network equipment market, ranging from switches to WAN optimization and application delivery controller solutions.
Sam Barnett, directing analyst for data center and cloud at Infonetics Research, explained that the Ethernet switch market grew by 800 percent year-over-year during the third quarter of 2011. This shows that data center operators are working to converge network infrastructure and will likely follow their investments in switching with increased spending in many other aspects of the data center network.
"The resurgence in data center upgrades, virtualization, and data/storage/traffic growth bodes well for all categories in the data center network equipment market. Once final 2011 figures are in, we expect the market to be up about 6% over 2010, and we expect growth to nudge back up into double-digit percent territory in 2012," said Barnett.
Infonetics found that North America is leading this charge into data center network upgrades, as the region experienced the most growth during the period. However, the Asia-Pacific segment is not too far behind. Even though the sector fell substantially in terms of revenue gains during the quarter, it still expanded by 39 percent year-over-year.
In many cases, network upgrades in the data center are designed to solve a wide range of problems. Cloud computing and virtualization are demanding more bandwidth. They are also creating an environment in which communication between servers increases, while application delivery to users also rises. Goals for sustainability are challenging operators to connect almost everything to the network, allowing them to more closely control facilities. These factors are contributing to wholesale network upgrades among many operators.
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