The next-generation data centers require fast and simplified Ethernet network fabrics to reduce the cost of operations and the Total Cost of Ownership (TCO) by integrating major pillars of the data center, including server, storage, and networking systems. Fabric reduces the failure frequency and downtime. It helps data center owners to transform their customer legacy network structure into single-tiers and modernize the infrastructure of their data centers.
The flattening of network architectures as a response to cloud computing environments used in modern data centers requires the use of data center fabrics for better connectivity between different servers. The data center fabric also reduces cost of operations enabling managers to meet shrinking budgets of organizations. This market has already gained momentum and is expected to witness exponential growth in the coming years. Small organizations are expected to upgrade to 10 GbE Ethernet in the coming years, while 40 GbE and 100 GbE switches are expected to see increase in adoption among large data center owners. Hybrid electrical/optical switch architecture replacing traditional Electrical Packet Switches (EPS) will gain widespread acceptance in the coming years. Data center fabric has huge requirement among cloud service providers, telecommunication providers, and enterprises.
Major players in the data center fabric market include IBM, HP, Cisco, Juniper Networks, Dell, Avaya, Arista Networks, Brocade, Extreme Networks, and Huawei. These companies are developing innovative data center fabric products to explore the huge potential in this market and the user-friendly experience in highly complex and virtualized data centers. Major industry verticals in terms of revenue are high tech, Banking, Financial Services, and Insurance (BFSI), and media and entertainment. Overall, MarketsandMarkets forecasts the data center fabric market to grow from $5.13 billion in 2014 to $15.14 billion by 2019 registering Compound Annual Growth Rate (CAGR) of 24.2%.
Data Center Fabric Market by Solutions (Switching, Routers, Controllers, SAN, Network Security Equipments, Management Software) & User Environment (Enterprises, Telecommunications, Cloud Providers) - Worldwide Forecasts & Analysis (2014 - 2019)
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