Five Promising Trends To Drive Data Center Networking

From year to year, we experience a series of changes that take networking technology to the next level. Now, while we progress in 2020, why not take note of the phenomena and techniques that will play significant roles in the industry. These schemes are most likely to project the networking industry to remarkable heights in a few years to come.

As mentioned by Market Reports World, the global market of optical transceivers is expected to grow more than $41 billion!

100G and 400G data center networking offers the benefits of availability and cost advantages. With these factors in place, the industry can realise this projection up from the initial $4.6b estimate four years ago. Subsequently, let us review these driving factors that will influence this remarkable development in the networking field.

1. DCI –driven by the insatiable demand for bandwidth.

Data Center Interconnect is a technology that facilitates the transmission of assets over distances of varying lengths between data centers. Typically, when sets of data move across data centers, they range between terabits and hundreds of gigabits. Hence, for such transmission, networking equipment should have the capacity for steady, high-powered connections with fast and straightforward scaling.

In DCI solutions, there are surges in the Internet of Things (IoT) and OTT (over-the-top) videos- the leading bandwidth consumer. These factors, including that of cloud computing, will contribute to the ever-growing demand for higher bandwidth. Besides, the advent of AI and 5G will also play significant roles in such a trend in the DCI networking field.

Currently, 100G is the yardstick for high-powered DCI. Correspondingly, many service providers and enterprises are also taking advantage of the numerous benefits and opportunities that the network offers. However, prepare for the impending adoption of 400G schemes, while other technologies and data rates continue supporting the networking architecture.

2. SDN will bridge the Cloud and Edge

Software-defined networking, SDN, offers such flexibility that will enable the mainstream adoption of the technology. As a result, this technology will encourage network operators and enterprises to upgrade to superior data rates. The SDN also works as a decision-maker. Hence, it can sort out tasks and place them for seamless upload either into the cloud or at the edge.

Consequently, this technology is efficient at bridging the gap between cloud services and edge computing. As said by Technavio, the rise of edge computing and IoT will play significant roles in the SDN market. The group anticipates that the SDN market will rise to a compound annual growth rate (CAGR) of 24% from 2020-2023.

3. Sustainability will grow to be paramount

Sustainability is another paramount factor that will contribute to the adoption of 400G by hyperscalers. Apple and Google have already transformed their data centers into 100% renewable energy. On the other hand, Amazon and Microsoft have announced that they plan to do so in the next decade.

400G offers lower consumption energy per bit, as well as a smaller footprint, dissimilar to traditional schemes for data rates.

Consequently, it makes it possible for hyperscalers to use the environment more responsibly. However, it applies not only to hyperscalers but also to all stakeholders in the optical transceiver and data-center sector globally.

Service-providing data centers and enterprises are beginning to demand superior cooling methods and power from the new optical equipment.

4. New Hyperscalers will settle for 400G

The demand for cloud computing is ever-growing and rapid. This factor will trigger the rapid adoption of the 400G network by more hyper-scale data centers. For instance, let us look at giants of technology like Facebook, Amazon, Microsoft, and Google. These four had upgraded to the 100G technology even long before telecom and corporate data centers.

Similarly, it wouldn’t be surprised when they will upscale their facilities’’ computing performance to projected levels. This projection will support not only their cloud services but also their mobile content transmission.

Cisco mentioned that the traffic of mobile data increases continually worldwide. And, it is anticipated to reach a level of 131 exabytes per month by the end of 2024. Hence, it will grow at a rate of 30% CAGR between 2018 and 2024. Currently, the level of mobile global internet traffic is increasing up to a remarkable 48% rate of the total.

5. Back-to-Back automation, monitoring, and analytics will distinguish the competition

For this last development, there is an inclusion of a bit of other contributing factors. For instance, the automation of data centers will project hyperscalers who want to keep up with the fast-moving capacity race. With the passing of each day, data centers find big deals with the continuous management of their enterprise.

However, with intelligent AI-based machines and applications, these hyperscalers will understand better about their operations within a quick dashboard view. Hence, they perform better and give efficient, proactive responses to any sort of fault. This technology comes in handy in cases of extraordinary IT operation complexities with upsetting shortages of available skills