Data Center Networking Market
Light Source Communications Secures Deal with Major Global Hyperscaler for Fiber Network in Phoenix Metro Area
Light Source Communications is building a 140-mile fiber middle-mile network in the Phoenix, AZ metro area, covering nine cities: Phoenix, Mesa, Tempe, Chandler, Gilbert, Queen Creek, Avondale, Coronado and Cashion. The company already has a major hyperscaler as the first anchor tenant.
There are currently 70 existing and planned data centers in the area that Light Source will serve. As one might expect, the increase in data centers stems from the boom in artificial intelligence (AI).
The network will include a big ring, which will be divided into three separate rings. In total, Light Source will be deploying 140 miles of fiber. The company has partnered with engineering and construction provider Future Infrastructure LLC, a division of Primoris Services Corp., to make it happen.
“I would say that AI happens to be blowing up our industry, as you know. It’s really in response to the amount of data that AI is demanding,” said Debra Freitas [1.], CEO of Light Source Communications (LSC).
Note 1. Debra Freitas has led LSC since co-founding in 2014. Owned and operated network with global OTT as a customer. She developed key customer relationships, secured funding for growth. Currently sits on the Executive Board of Incompas.
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Light Source plans for the entire 140-mile route to be underground. It’s currently working with the city councils and permitting departments of the nine cities as it goes through its engineering and permit approval processes. Freitas said the company expects to receive approvals from all the city councils and to begin construction in the third quarter of this year, concluding by the end of 2025.
Primoris delivers a range of specialty construction services to the utility, energy, and renewables markets throughout the United States and Canada. Its communications business is a leading provider of critical infrastructure solutions, including program management, engineering, fabrication, replacement, and maintenance. With over 12,700 employees, Primoris had revenue of $5.7 billion in 2023.
“We’re proud to partner with Light Source Communications on this impactful project, which will exceed the growing demands for high-capacity, reliable connectivity in the Phoenix area,” said Scott Comley, president of Primoris’ communications business. “Our commitment to innovation and excellence is well-aligned with Light Source’s cutting-edge solutions and we look forward to delivering with quality and safety at the forefront.”
Light Source is a carrier neutral, owner-operator of networks serving enterprises throughout the U.S. In addition to Phoenix, several new dark fiber routes are in development in major markets throughout the Central and Western United States. For more information about Light Source Communications, go to lightsourcecom.net.
The city councils in the Phoenix metro area have been pretty busy with fiber-build applications the past couple of years because the area is also a hotbed for companies building fiber-to-the-premises (FTTP) networks. In 2022 the Mesa City Council approved four different providers to build fiber networks. AT&T and BlackRock have said their joint venture would also start deploying fiber in Mesa.
Light Source is focusing on middle-mile, rather than FTTP because that’s where the demand is, according to Freitas. “Our route is a unique route, meaning there are no other providers where we’re going. We have a demand for the route we’re putting in,” she noted.
The company says it already has “a major, global hyperscaler” anchor tenant, but it won’t divulge who that tenant is. Its network will also touch Arizona State University at Tempe and the University of Arizona.
Light Source doesn’t light any of the fiber it deploys. Rather, it is carrier neutral and sells the dark fiber to customers who light it themselves and who may resell it to their own customers.
Light Source began operations in 2014 and is backed by private equity. It did not receive any federal grants for the new middle-mile network in Arizona.
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Bill Long, Zayo’s chief product officer, told Fierce Telecom recently that data centers are preparing for an onslaught of demand for more compute power, which will be needed to handle AI workloads and train new AI models.
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About Light Source Communications:
Light Source Communications (LSC) is a carrier neutral, customer agnostic provider of secure, scalable, reliable connectivity on a state-of-the-art dark fiber network. The immense amounts of data businesses require to compete in today’s global market requires access to an enhanced fiber infrastructure that allows them to control their data. With over 120 years of telecom experience, LSC offers an owner-operated network for U.S. businesses to succeed here and abroad. LSC is uniquely positioned and is highly qualified to build the next generation of dark fiber routes across North America, providing the key connections for business today and tomorrow.
References:
https://www.lightsourcecom.net/services/
https://www.fiercetelecom.com/ai/ai-demand-spurs-light-source-build-middle-mile-network-phoenix
Proposed solutions to high energy consumption of Generative AI LLMs: optimized hardware, new algorithms, green data centers
AI sparks huge increase in U.S. energy consumption and is straining the power grid; transmission/distribution as a major problem
AI Frenzy Backgrounder; Review of AI Products and Services from Nvidia, Microsoft, Amazon, Google and Meta; Conclusions
CoreSite Enables 50G Multi-cloud Networking with Enhanced Virtual Connections to Oracle Cloud Infrastructure FastConnect
Note 1. CoreSite is a subsidiary of American Tower Corporation and a member of Oracle PartnerNetwork (OPN).
Note 2. Oracle FastConnect enables customers to bypass the public internet and connect directly to Oracle Cloud Infrastructure and other Oracle Cloud services. With connectivity available at CoreSite’s data centers, FastConnect provides a flexible, economical private connection to higher bandwidth options for your hybrid cloud architecture. Oracle FastConnect is accessible at CoreSite’s data center facilities in Northern Virginia and Los Angeles through direct fiber connectivity. FastConnect is also available via the CoreSite Open Cloud Exchange® in seven CoreSite markets, including Los Angeles, Silicon Valley, Denver, Chicago, New York, Boston and Northern Virginia.
The integration of Oracle FastConnect and the CoreSite Open Cloud Exchange offers on-demand, virtual connectivity and access to best in class, end-to-end, fully redundant connection architecture.
Image Credit: CoreSite
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The connectivity of FastConnect and the OCX can offer customers deploying artificial intelligence (AI) and data-intensive applications the ability to transfer large datasets securely and rapidly from their network edge to machine learning (ML) models and big data platforms running on OCI. With the launch of the new OCX capabilities to FastConnect, businesses can gain greater flexibility to provision on-demand, secure bandwidth to OCI with virtual connections of up to 50 Gbps.
With OCI, customers benefit from best-in-class security, consistent high performance, simple predictable pricing, and the tools and expertise needed to bring enterprise workloads to cloud quickly and efficiently. In addition, OCI’s distributed cloud offers multicloud, hybrid cloud, public cloud, and dedicated cloud options to help customers harness the benefits of cloud with greater control over data residency, locality, and authority, even across multiple clouds. As a result, customers can bring enterprise workloads to the cloud quickly and efficiently while meeting the strictest regulatory compliance requirements.
“The digital world requires faster connections to deploy complex, data-intense workloads. The simplified process offered through the Open Cloud Exchange enables businesses to rapidly scale network capacity between the enterprise edge and cloud providers,” said Juan Font, President and CEO of CoreSite, and SVP of U.S. Tower. “These enhanced, faster connections with FastConnect can provide businesses with a competitive advantage by ensuring near-seamless and reliable data transfers at massive scale for real-time analysis and rapid data processing.”
OCI’s extensive network of more than 90 FastConnect global and regional partners offer customers dedicated connectivity to Oracle Cloud Regions and OCI services – providing customers with the best options anywhere in the world. OCI is a deep and broad platform of cloud infrastructure services that enables customers to build and run a wide range of applications in a scalable, secure, highly available, and high-performance environment. From application development and business analytics to data management, integration, security, AI, and infrastructure services including Kubernetes and VMware, OCI delivers unmatched security, performance, and cost savings.
The new Open Cloud Exchange capabilities on FastConnect will be available in Q4 2023.
Related Resources:
- Watch What is The Open Cloud Exchange® and How Can It Simplify and Automate Your Cloud Connectivity?
- Open Cloud Exchange® Solution Brochure
- Trust CoreSite Data Centers to Enable Your AI Strategy
- Why businesses partner with CoreSite
About CoreSite:
CoreSite, an American Tower company (NYSE: AMT), provides hybrid IT solutions that empower enterprises, cloud, network, and IT service providers to monetize and future-proof their digital business. Our highly interconnected data center campuses offer a native digital supply chain featuring direct cloud onramps to enable our customers to build customized hybrid IT infrastructure and accelerate digital transformation. For more than 20 years, CoreSite’s team of technical experts has partnered with customers to optimize operations, elevate customer experience, dynamically scale, and leverage data to gain competitive edge. For more information, visit CoreSite.com and follow us on LinkedIn and Twitter.
References:
IEEE Santa Clara Valley (SCV) Lecture and Tour of CoreSite Multi-Tenant Data Center
https://www.coresite.com/cloud-networking/oracle-fastconnect
Data Center Networking Market to grow at a CAGR of 6.22% during 2022-2027 to reach $35.6 billion by 2027
According to Arizton’s latest market research report, the data center networking market is expected to grow at a CAGR of 6.22% during 2022-2027. Growth in the adoption of high-capacity switches, Big Data & IoT solutions, and rising data center investments are driving the market.
Data Center Networking Market Report Scope
| Report Attributes | Details |
| MARKET SIZE (INVESTMENT) | $35.6 billion (2027) |
| CAGR | 6.22% (2022-2027) |
| GEOGRAPHICAL COVERAGE | North America (US, Canada), Latin America (Brazil, Rest of Latin America), Western Europe (UK, Germany, France, Netherlands, Ireland, Other Western European Countries), Nordics (Sweden, Other Nordic Countries), Central & Eastern Europe (Russia and Other Central and Eastern European countries), Middle East (UAE, Saudi Arabia, Other Middle Eastern Countries), Africa (South Africa, Other African Countries), APAC (China & Hong Kong, Australia & New Zealand, Japan, India, Rest Of APAC, Singapore, and Other Southeast Asian Countries) |
| MARKET PARTICIPANT COVERAGE | 20+ Network Infrastructure vendors |
| SEGMENTS COVERED | Sectors (BFSI, Government, Cloud, IT & Telecom, & Other Sectors), Product Types (Ethernet Switches, Routers, Storage Networking & Other Network Infrastructure) |
Click Here to Download the Free Sample Report
The data center networking market is dominated by cloud service providers. The increase in data traffic is raising the complexity both on the internet and external data center networks. Internally, the growth in data traffic necessitated the use of a 10 GbE switch configuration on the top of the rack, and switches of higher capacity (greater than 10 GbE) are deployed in aggregation and core layers.
Highlights:
- The increasing bandwidth requirements due to the growing adoption of technologies such as big data, IoT, AI, ML, cloud services, data center consolidation, and virtualization are some major factors driving the demand for high capacity ethernet port switches, controllers, and adaptors.
- The market is witnessing growth in the adoption of software-defined networking solutions as well as application-centric infrastructure by data center operators across all industry sectors.
- The market is dominated by industry sectors such as cloud service providers contributing over 60% of the market share followed by the telecom sector.
- The market is witnessing a trend of businesses switching from FC SAN switches to Ethernet-based data exchanges using iSCSI SAN or FCoE in data centres.
- The growing adoption of converged and hyper-converged infrastructure will increase the opportunities for vendors offering innovative network infrastructure solutions in the market.
Key Offerings:
- Market Size & Forecast by Volume | 2022−2028
- Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
- Market Segmentation – A detailed analysis by industry, product, and geography
- Competitive Landscape – 25 vendors are profiled in the report
Competitive Landscape:
Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, Huawei, Juniper Networks, Lenovo, and Oracle have significant revenue shares in the market. Several vendors have begun to sell their goods in different parts of the world. Due to the intense competition among large suppliers, new vendors have been able to enter the market. In terms of opportunities, the United States is already a mature market, with regions such as APAC, Western Europe, and the Nordics seeing considerable demand growth. Central and Eastern Europe, as well as the Middle East and Africa, are in the early stages of development and are projected to see an increase in demand for network infrastructure.
The adoption of orchestration and management solutions in data centers and the automation of network operations will have an impact on the market during the forecast period, requiring vendors to offer solutions matching every business network’s operational needs. The implementation of 5G has taken off in many countries, which is likely to boost data traffic, leading to the procurement of high-capacity networking solutions i.e., 200 GbE/400 GbE switches, as a part of the data center interconnect solutions.
Infrastructure Vendors
- Alcatel-Lucent Enterprise
- Arista Networks
- Black Box offers
- Broadcom
- Cisco Systems
- Dell Technologies
- Digisol Systems
- D-Link
- Enterprise Engineering Solutions (EES)
- Extreme Networks
- Fujitsu
- Hewlett Packard Enterprise (HPE)
- Huawei Technologies
- Intel
- Inventec
- Juniper Networks
- Lenovo
- Marvell Technology
- MiTAC Computing technology
- Oracle
- Quanta Cloud Technology (Quanta Computer)
- Ruijie Networks
- Tripp Lite (EATON)
- Super Micro Computer
- ZTE
Industry
- BFSI Sector
- Government Sector
- Cloud Sector
- It & Telecom Sector
- Other Industry Sectors
Products
- Ethernet Switches
- Storage Networking
- Routers
- Other Network Infrastructure
Geography
- North America
- US
- Canada
- APAC
- China & Hong Kong
- Australia & New Zealand
- Japan
- India
- Rest of APAC
- Western Europe
- UK
- Germany
- France
- Netherlands
- Ireland
- Other Western Europe
- Central & Eastern Europe
- Russia
- Other Central & Eastern Europe Countries
- Latin America
- Brazil
- Other Latin American Countries
- Nordics
- Sweden
- Other Nordics Countries
- Africa
- South Africa
- Other African Countries
- Middle East
- UAE
- Saudi Arabia
- Other Middle Eastern Countries
- Southeast Asia
- Singapore
- Other Southeast Asia countries
Explore our data center knowledge base profile to know more about the industry.
Click Here to Download the Free Sample Report
Read some of the top-selling reports:
- Data Center Market – Global Outlook & Forecast 2022-2027
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About Arizton:
Arizton Advisory and Intelligence is an innovation and quality-driven firm, which offers cutting-edge research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
Equinix to deploy Nokia’s IP/MPLS network infrastructure for its global data center interconnection services
Today, Nokia announced that Equinix will deploy a new Nokia IP/MPLS network infrastructure to support its global interconnection services. As one of the largest data center and colocation providers, Equinix currently runs services on multiple networks from multiple vendors. With the new network, Equinix will be able to consolidate into one, efficient web-scale infrastructure to provide FP4-powered connectivity to all data centers – laying the groundwork for customers to deploy 5G networks and services.
Muhammad Durrani, Director of IP Architecture for Equinix, said, “We see tremendous opportunity in providing our customers with 5G services, but this poses special demands for our network, from ultra-low latency to ultra broadband performance, all with business- and mission-critical reliability. Nokia’s end-to-end router portfolio will provide us with the highly dynamic and programmable network fabric we need, and we are pleased to have the support of the Nokia team every step of the way.”
“We’re pleased to see Nokia getting into the data center networking space and applying the same rigor to developing a next-generation open and easily extendible data center network operating system while leveraging its IP routing stack that has been proven in networks globally. It provides a platform that network operations teams can easily adapt and build applications on, giving them the control they need to move fast.”
Sri Reddy, Co-President of IP/Optical Networks, Nokia, said, “We are working closely with Equinix to help advance its network and facilitate the transformation and delivery of 5G services. Our end-to-end portfolio was designed precisely to support this industrial transformation with a highly flexible, scalable and programmable network fabric that will be the ideal platform for 5G in the future. It is exciting to work with Equinix to help deliver this to its customers around the world.”
With an end-to-end portfolio, including the Nokia FP4-powered routing family, Nokia is working in partnership with operators to deliver real 5G. The FP4 chipset is the industry’s leading network processor for high-performance routing, setting the bar for density and scale. Paired with Nokia’s Service Router Operating System (SR OS) software, it will enable Equinix to offer additional capabilities driven by routing technologies such as Ethernet VPNs (EVPNs) and segment routing (SR).
Image Credit: Nokia
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This latest deal comes just two weeks after Equinix said it will host Nokia’s Worldwide IoT Network Grid (WING) service on its data centers. WING is an Infrastructure-as-a-Service offering that provides low-latency and global reach to businesses, hastening their deployment of IoT and utilizing solutions offered by the Edge and cloud.
Equinix operates more than 210 data centers across 55 markets. It is unclear which of these data centers will first offer Nokia’s services and when WING will be available to customers.
“Nokia needed access to multiple markets and ecosystems to connect to NSPs and enterprises who want a play in the IoT space,” said Jim Poole, VP at Equinix. “By directly connecting to Nokia WING, mobile network operators can capture business value across IoT, AI, and security, with a connectivity strategy to support business transformation.”
References:
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About Nokia:
We create the technology to connect the world. Only Nokia offers a comprehensive portfolio of network equipment, software, services and licensing opportunities across the globe. With our commitment to innovation, driven by the award-winning Nokia Bell Labs, we are a leader in the development and deployment of 5G networks.
Our communications service provider customers support more than 6.4 billion subscriptions with our radio networks, and our enterprise customers have deployed over 1,300 industrial networks worldwide. Adhering to the highest ethical standards, we transform how people live, work and communicate. For our latest updates, please visit us online www.nokia.com and follow us on Twitter @nokia.
Resources:
- Webpage: Nokia 7750 SR-s
- Webpage: Nokia FP4 silicon
- Webpage: Nokia Service Router Operating System (SR OS)
- Webpage: Nokia Network Services Platform
Synergy Research: Strong demand for Colocation with Equinix, Digital Realty and NTT top providers
New data from Synergy Research Group shows that just 25 metro areas account for 65% of worldwide retail and wholesale colocation revenues. Ranked by revenue generated in Q2 2020, the top five metros are Washington, Tokyo, London, New York and Shanghai, which in aggregate account for 27% of the worldwide market. The next 20 largest metro markets account for another 38% of the market.
Those top 25 metros include eleven in North America, nine in the APAC region, four in EMEA and one in Latin America. The world’s three largest colocation providers are Equinix, Digital Realty and NTT. One of those three is the market leader in 17 of the top 25 metros. The global footprint of Equinix is particularly notable and it is the retail colocation leader in 16 of the top 25 metros. In the wholesale segment Digital Realty is leader in seven of the metros, with NTT, Global Switch and GDS each leading in at least two metros. Other colocation operators that feature heavily in the top 25 metros include 21Vianet, @Tokyo, China Telecom, China Unicom, CoreSite, CyrusOne, Cyxtera, KDDI and QTS.
Over the last twenty quarters the top 25 metro share of the worldwide retail colocation market has been relatively constant at around the 63-65% mark, despite a push to expand data center footprints and to build out more edge locations.
->That seems to indicate that edge computing hasn’t made a wider impact beyond the 25 largest colo metro areas.
Among the top 25 metros, those with the highest colocation growth rates (measured in local currencies) are Sao Paulo, Beijing, Shanghai and Seoul, all of which grew by well over 20% in the last year. Other metros with growth rates well above the worldwide average include Phoenix, Frankfurt, Mumbai and Osaka. While not in the group of highest growth metros overall, growth in wholesale revenues was particularly strong in Washington DC/Northern Virginia and London.
“We continue to see strong demand for colocation, with the standout regional growth numbers coming from APAC. Revenue growth from hyperscale operator customers remains particularly strong, demonstrating the symbiotic nature of the relationship between cloud and colocation,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “The major economic hubs around the world are naturally the most important colocation markets, while hyperscale operators tend to focus their own data center operations in more remote areas with much lower real estate and operating costs. These cloud providers will continue to rely on colocation firms to help better serve major clients in key cities, ensuring the large metros will maintain their share of the colocation market over the coming years.”
About Synergy Research Group
Synergy provides quarterly market tracking and segmentation data on IT and Cloud related markets, including vendor revenues by segment and by region. Market shares and forecasts are provided via Synergy’s uniquely designed online database tool, which enables easy access to complex data sets. Synergy’s CustomView ™ takes this research capability one step further, enabling our clients to receive ongoing quantitative market research that matches their internal, executive view of the market segments they compete in.
References:
https://www.srgresearch.com/articles/top-25-metros-generate-65-worldwide-colocation-revenues
Dell’Oro: Data Center Switch market declined 9% YoY; SD-WAN market increased at slower rate than in 2019
Market research firm Dell’Oro Group reported today that the worldwide Data Center Switch market recorded its first decline in nine years, dropping 9 percent year-over-year in the first quarter. 1Q 2020 revenue level was also the lowest in three years. The softness was broad-based across all major branded vendors, except Juniper Networks and white box vendors. Revenue from white box vendors was propelled mainly by strong demand from Google and Amazon.
“The COVID-19 pandemic has created some positive impact on the market as some customers pulled in orders in anticipation of supply shortage and elongated lead times,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “Yet this upside dynamic was more than offset by the pandemic’s more pronounced negative impact on customer demand as they paused purchases due to macro-economic uncertainties. Supply constraints were not major headwinds during the first quarter but expected to become more apparent in the next quarter,” added Boujelbene.
Additional highlights from the 1Q 2020 Ethernet Switch – Data Center Report:
- The revenue decline was broad-based across all regions but was less pronounced in North America.
- We expect revenue in the market to decline high single-digit in 2020, despite some pockets of strength from certain segments.
The Dell’Oro Group Ethernet Switch – Data Center Quarterly Report offers a detailed view of the market, including Ethernet switches for server access, server aggregation, and data center core. (Software is addressed separately.) The report contains in-depth market and vendor-level information on manufacturers’ revenue; ports shipped; average selling prices for both Modular and Fixed Managed and Unmanaged Ethernet Switches (1000 Mbps,10, 25, 40, 50, 100, 200, and 400 GE); and regional breakouts. To purchase these reports, please contact us by email at [email protected].
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Separately, Dell’Oro Group reported that the market for software-defined (SD)-WAN equipment increased by 24% in the first quarter (year-to-year), which was significantly below the 64% growth seen in 2019. Citing supply chain issues created by the coronavirus pandemic, the market research firm’s Shin Umeda predicted the market will post double-digit growth in 2020 despite “macroeconomic uncertainty.”
- Supply chain disruptions accounted for the majority of the Service Provider (SP) Router and CES Switch market decline in 1Q 2020.
- The SP Router and CES market in China showed a modest decline in 1Q 2020, but upgrades for 5G infrastructure are expected to drive strong demand over the rest of 2020.
Omdia: High-speed data-center Ethernet adapter market at $1.7 billion in 2019
Executive Summary:
The market for Ethernet adapters with speeds of 25 gigabits (25GE) and faster deployed by enterprises, cloud service providers and telecommunication network providers at data centers topped $1 billion for the first time in 2019, according to Omdia.
The total Ethernet adapter market size stood at $1.7 billion for the year. This result was in line with Omdia’s long term server and storage connectivity forecast. Factors driving that forecast include the growth in data sets, such as those computed by analytics algorithms looking for patterns, and the adoption of new software technologies like AI and ML which must examine large data sets to be effective, driving larger movement of data.
“Server virtualization and containerization reached new highs in 2019 and drove up server utilization. This increased server connectivity bandwidth requirements, and the need for higher speed Ethernet adapters” said Vlad Galabov, principal analyst for data center IT, at Omdia. “The popularization of data-intensive workloads, like analytics and AI, were also strong drivers for higher speed adapters in 2019”
25GE Ethernet adapters represented more than 25 percent of total data-center Ethernet adapter ports and revenue in 2019, as reported by Omdia’s Ethernet Network Adapter Equipment Market Tracker. Omdia also found that the price per each 25GE port is continued to decline. A single 25GE port cost an average of $81 in 2019, a decrease of $9 from 2018.
Despite representing a small portion of the market, 100GE Ethernet adapters are increasingly deployed by cloud service providers and enterprises running high-performance computing clusters. Shipments and revenue for 100GE Ethernet adapter ports both grew by more than 60 percent in 2019. Each 100GE adapter port is also becoming more affordable. In 2019, an individual 100GE Ethernet adapter port cost $321 on average, a decrease of $34 from 2018.
“Cloud service providers (CSPs) are leading the transition to faster networks as they run multi-tenant servers with a large number of virtual machines and/or containers per server. This is driving high traffic and bandwidth needs,” Galabov said. “Omdia expects telcos to invest more in higher speeds going forward—including 100GE—driven by network function virtualization (NFV) and increased bandwidth requirements from HD video, social media, AR/VR and expanded IoT use cases.”
The Ethernet outlook:
Omdia expects Ethernet adapter revenue to grow 21 percent on average each year through 2024. Despite the COVID-19 lockdown, the Ethernet adapter market is set to remain close to this growth curve in 2020.
Ethernet adapters that can provide complete on-card processing of network, storage or memory protocols, data-plane offload or that can offload server memory access will account for half of the total market revenue in 2020, or $1.1 billion. Ethernet adapters that have an onboard field customizable processor such as a field-programmable gate array (FPGA) or system on chip (SoC), will account for slightly more than than a quarter of 2020 adapter revenue, totaling $557 million. Adapters that only provide Ethernet connectivity will make up a minority share of the market, at just $475 million.
Intel maintains lead:
Looking at semiconductor vendor market share, Intel held 24 percent of the 2019 Ethernet adapter market, shipping adapters worth $424 million in 2019. This represents a 2.5-point decrease from 2018 that Omdia attributes to the aging Intel Ethernet adapter portfolio which consists primarily of 1GE and 10GE adapters with Ethernet connectivity only. Intel indicated it will introduce adapters with offload functionality in 2020 that will help it remain competitive in the market.
Mellanox (now part of NVIDIA) captured 21 percent of the 2019 Ethernet adapter market, a 1-point increase compared to 2018. The vendor reported strong growth of its 25GE and 100GE offload adapters driven by strong cloud service provider demand and growing demand among enterprises for 25GE networking.
Broadcom was the third largest Ethernet adapter vendor in 2019, commanding a 14 percent share of the market, an increase of 3 points from 2018. Broadcom’s revenue growth was driven by strong demand for high-speed offload and programmable adapters at hyperscale CSPs.
In 2019, Microsoft and Amazon continued to adopt in-house-developed Ethernet adapters. Given their large scale and the high value of their high-speed offload and programmable adapters, the companies cumulatively deployed Ethernet adapters worth over $300 million. This made them the fourth and fifth largest makers of Ethernet adapters in 2019. As both service providers deploy 100GE adapters in larger numbers in 2020, they’re set to remain key trendsetters in the market.
Amazon AWS and Microsoft Azure continued to use in-house-developed Ethernet adapters. Given their large scale and the high value of their high-speed offload and programmable adapters, the companies cumulatively deployed Ethernet adapters worth over $300 million, according to Omdia. This made Microsoft and Amazon, respectively, the fourth and fifth largest makers of Ethernet adapters in 2019. As both service providers deploy 100GE adapters in larger numbers in 2020, Omdia expects them to continue to be key trendsetters in the market going forward.
About Omdia:
Omdia is a global technology research powerhouse, established following the merger of the research division of Informa Tech (Ovum, Heavy Reading and Tractica) and the acquired IHS Markit technology research portfolio*.
We combine the expertise of over 400 analysts across the entire technology spectrum, analyzing 150 markets publishing 3,000 research solutions, reaching over 14,000 subscribers, and covering thousands of technology, media & telecommunications companies.
Our exhaustive intelligence and deep technology expertise allow us to uncover actionable insights that help our customers connect the dots in today’s constantly evolving technology environment and empower them to improve their businesses – today and tomorrow.
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Omdia is a registered trademark of Informa PLC and/or its affiliates. All other company and product names may be trademarks of their respective owners. Informa PLC registered in England & Wales with number 8860726, registered office and head office 5 Howick Place, London, SW1P 1WG, UK. Copyright © 2020 Omdia. All rights reserved.
*The majority of IHS Markit technology research products and solutions were acquired by Informa in August 2019 and are now part of Omdia.
TMR: Data Center Networking Market sees shift to user-centric & data-oriented business + CoreSite DC Tour
TMR Press Release edited by Alan J Weissberger followed by Coresite Data Center Talk & Tour for IEEE ComSocSCV and Power Electronics members
TMR Executive Summary and Forecast:
The global data center networking market is expected to emerge as highly competitive due to rising demand for networking components.
The major players operating in the global data center networking market include Hewlett Packard Enterprise, Cisco Systems, Inc., Arista Networks, Microsoft Corporation, and Juniper Networks. The key players are also indulging into business strategies such as mergers and acquisitions to improve their existing technologies. Those vendors are investing heavily in the research and development activities to sustain their lead in the market. Besides, these firms aim to improve their product portfolio in order to expand their global reach and get an edge over their competitors globally.
The global data center networking market is likely to pick up a high momentum since the firms are rapidly shifting to a more user-centric and data-oriented business. According to a recent report by Transparency Market Research (TMR), the global data center networking market is expected to project a steady CAGR of 15.5% within the forecast period from 2017 to 2025. In 2016, the global market was valued around worth US$63.05 bn, which is projected to reach around a valuation of US$228.40 bn by 2025.
On the basis of component, the global data center networking market is segmented into services, software, and hardware. Among these, the hardware segment led the market in 2016 with around 52.0% of share of data center networking market, as per the revenue. Nevertheless, projecting a greater CAGR than other segments, software segment is as well foreseen to emerge as the key segment contributing to the market growth. Geographically, North America was estimated to lead the global market in 2016. Nevertheless, Asia Pacific is likely to register the leading CAGR of 17.3% within the forecast period from 2017 to 2025.
Rising Demand for Networking Solutions to Propel Growth in Market
Increased demand for networking solutions has initiated a need for firms to change data center as a collective automated resource centers, which provide better flexibility to shift workload from any cloud so as to improve the operational efficiency.
Rising number of internet users across the globe require high-speed interface. Companies are highly dependent on the data centers in terms of efficiency to decrease the operational cost and improve the productivity.
Nevertheless, virtualization and rising demand for end-use gadgets are the major restrictions likely to hamper growth in the data center networking market in the coming years. Rising usage of mobile devices and cloud services also is hindering the steady strides in the data center networking market.
Popularity of Big Data to Add to Market Development in Future:
Rising popularity of big data and cloud services from the industry as well as consumer is anticipated to fuel the development in the global data center networking market. Advantages such as low operational costs, flexibility, better security and safety, and improved performance are likely to proliferate the market growth.
Disaster recovery and business continuity has resulted in simplification of data center networking by saving both money and time for companies. Financial advantages along with technology is likely to augur the demand in data center networking and cloud computing.
Companies are highly focused on data center solution providers to perform efficiently and effectively, with better productivity, high profit, and decreased prices. These goals require high-end networking technologies and upgraded performance server. It also needs a proper integration between simplified networking framework and server to reach the optimum level of performance.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Data Center Networking Market (Component Type – Hardware, Software, and Services; Industry Vertical – Telecommunications, Government, Retail, Media and Entertainment, BFSI, Healthcare, and Education) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 – 2025.”
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Press Release:
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Coresite Data Center Tour:
On May 23, 2019, IEEE ComSocSCV and IEEE Power Electronics members were treated to a superb talk and tour of the Coresite Multi-Tenant Data Center (MTDC) in Santa Clara, CA.
CoreSite is a Multi-Tenant Data Center owner that competes with Equinix. CoreSite offers the following types of Network Access for their MTDC colocation customers:
•Direct Access to Tier-1 and Eyeball Networks
•Access to Broad Range of Network Services (Transit/Transport/Dark Fiber)
•Direct Access to Public Clouds (Amazon, Microsoft, Google, etc)
•Direct Access to Optical Ethernet Fabrics
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CoreSite also provides POWER distribution and backup on power failures:
•Standby Generators
•Large Scale UPS
•Resilient Design
•Power Quality
•A/B Power Delivery
•99.999% Uptime
….and PHYSICAL SECURITY:
•24/7 OnSite Security Personnel
•Dual-Authentication Access
•IP DVR for All Facility Areas
•Perimeter Security
•Equipment Check-In/Out Process
•Access-Control Policies (Badge Deactivation, etc)
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There are 28 network operators and cloud service providers that have brought fiber into the CoreSite Santa Clara MTDC campus. The purpose of that is to enable customers to share fiber network/cloud access at a much higher speed and lower cost than would otherwise be realized via premises-based network/cloud access.
While the names of the network and cloud service providers could not be disclosed, network providers included: Verizon, AT&T, Century Link, Zayo. In addition, AWS Direct Connect, Microsoft Azure ExpressRoute, Alibaba Cloud, Google Cloud interconnection and other unnamed cloud providers were said to have provided direct fiber to cloud connectivity for CoreSite’s Santa Clara MTDC customers.
Here’s how network connectivity is achieved within and outside the CoreSite MTDC:
The SMF or MMF from each customer’s colocation cage is physically routed (under the floor) to a fiber wiring cross-connect/patch panel maintained by Coresite. The output fibers are then routed to a private room where the network/cloud providers maintain their own fiber optic gear (fiber optic multiplexers/switches, DWDM transponders and other fiber transmission equipment) which connect to the outside plant fiber optic cable(s) for each network/cloud services provider.
The outside plant fiber fault detection and restoration are done by each network/cloud provider- either via a mesh topology fiber optic network or 1:1 or N:1 hot standby. Coresite’s responsibility ends when it delivers the fiber to the provider cages. They do, however, have network engineers that are responsible for maintenance and trouble shooting in the DC when necessary.
Instead of using private lines or private IP connections, CoreSite offers an Interconnect Gateway-SM provides their enterprise customers a dedicated, high-performance interconnection solution between their cloud and network service providers, while establishing a flexible IT architecture that allows them to adapt to market demands and rapidly evolving technologies.
CoreSite’s gateway directly integrates enterprises’ WAN architecture into CoreSite’s native cloud and carrier ecosystem using high-speed fiber and virtual interconnections. This solution includes:
-Private network connectivity to the CoreSite data center
-Dedicated cabinets and network hardware for routing, switching, and security
-Direct fiber and virtual interconnections to cloud and network providers
-Technical integration, 24/7/365 monitoring and management from a certified CoreSite Solution Partner
-Industry-leading SLA