Data Center Networking Market Is Growing with the Growing Adoption of Cloud Data Storage
Data center networking is the method of interconnecting all
network-based devices within a data center facility. At its simplest, a data
center is a physical facility that organizations use to house their critical
applications and data. A data center's design is based on a network of
computing and storage resources that enable the delivery of shared applications
and data. Data centers collect, store, process,
distribute, and allow access to large amounts of data. Data center
networking uses high speed packet-optical
connectivity to connect two or more data centers over short, medium, or long
distances. Therefore, there is an increasing demand for data center
networking worldwide, driving the growth of the data center networking market.
Organizations rely more and
more on data centers as a delivery system due to increased demand for services
and access the Internet. Thus, with the growing
adoption of cloud data storage to reduce operational cost, demand for data
center networking has also increased. For example, in June 2021, NTT Ltd. announced
the launch of Global Data Center Interconnect (GDCI), an integrated service to
optimize hybrid cloud environments. Moreover, in June 2021, Acronis announced the
launch of a new Cloud Data Center in Mumbai, India. The company provides access
to a full range of cyber protection solutions, while delivering faster access,
constant data availability, and data sovereignty to their clients.
This in turn is expected to augment the growth of the data
center networking market, especially in India. A data center is a
facility that centralizes an organization's shared IT operations and equipment
for the purposes of storing, processing, and disseminating data and
applications. It is a facility where number of computer servers and their
associated components, such as storage devices, environmental controls,
backups, communication networks, and many others exits. Networking within an
enterprise data center connects servers to other servers as well as users.
Connections are made through switches, routers, and various types of cables.
Growing need for high-speed Ethernet, increasing adoption of
Industry 4.0, the advent of 5G, and improvement in data connectivity across
devices and applications are some major factors expected to accelerate the
growth of the data center networking market. For example, in July 2020, Nokia
announced a generational step in data center networking for enterprises,
service providers, and webscale companies, empowering them to rapidly design,
deploy, adapt and automate data center networking at massive scale to keep up
with increasing business demand from 5G and Industry 4.0.
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