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Networking sector changing in light of technological conditions

By Max Burkhalter
January 12, 2012
Everything from the service provider market to the core technologies that make networking happen is poised to shift during the next few years, as the internet continues to expand at a rapid rate and major upgrades are made to support this shift, according to a recent study from NTT America.

The first shift will be an increase in mergers and acquisitions among telecom service providers. Internet delivery needs are changing in terms of scale and performance, meaning that more major telecoms are likely to swallow smaller, specialized service providers to expand their own offerings.

According to NTT America, this dynamic activity already got going in 2011 and will continue into 2012. Michael Wheeler, vice president for NTT Communications Global IP Network at NTT America, explained that consolidation in the telecom industry can be attributed largely to the advent of cloud computing, which is creating demand for significant technological upgrades and operational shifts in the sector.

Change in the telecom sector will also be driven by video. Wheeler explained that video traffic is continuing its rapid expansion in both consumer and enterprise markets. In response, investments in advanced Ethernet ports and other technologies that drive performance gains will come at a rapid pace in the near future. To a great extent, these upgrades are coming to overcome the necessity of splitting ports, which can often detract from quality of service capabilities at the service provider level.

Networking investments will also make a shift in terms of location, as Latin America is poised to experience exponential growth in terms of new investments in advanced technologies to support the internet, according to the study.

The overarching theme of this study is simple - the internet is growing. Businesses and service providers alike are responding to the expansion by investing in more advanced networking solutions and developing business strategies that will give them the flexibility to respond to the changing web dynamic.

Cloud computing could play a key role in this shift. As more businesses convert to the cloud, the amount of data being sent through their networks can quickly become overwhelming.

According to a recent Opus Research report, a growing number of organizations are sending so much content through their networks that they no longer know how to properly analyze and use that information. This is also accompanied by hardware-related issues, making it clear that companies need to find a way to optimize their networks handle rising quantities of data traffic.

Perle’s wide range of 1 to 48 port Perle Console Servers provide data center managers and network administrators with secure remote management of any device with a serial console port. Plus, they are the only truly fault tolerant Console Servers on the market with the advanced security functionality needed to easily perform secure remote data center management and out-of-band management of IT assets from anywhere in the world.


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