IBM Corporation, Oracle Corporation, Internap Corporation, Packet Inc. (An Equinix Inc. Company), Scaleway Inc., Amazon Web Services Inc., Rackspace Inc., CenturyLink, Inc., and LightEdge Solutions, Inc. [Report Description] The data center fabric market is anticipated to expand at a CAGR of 22.5% between 2021 and 2026. Faster data rates, more computing resources, more storage to handle the volume of data being generated, and automated smart data center networks that could adapt to accommodate the dynamic processing requirements of distributed applications have been required as a result of the increased use of complex interactive applications, the expansion of internet services and activities, and the constant advancement of technology. Switch fabric has hinted at the data center fabric and grid computing has hinted at it.
Highlights Trends like security, software-defined networks (SDN), hybrid cloud, and Big Data are necessary to deliver higher levels of financial services to clients while simultaneously reducing risk and saving costs. High-speed, critical transaction processing still relies on the most recent and highest performing data center hardware and software.
Physical resources are being virtualized into logical pools using data center fabrics. Applications retrieve required resources from the logical pools, thereby optimizing IT resource utilization, as opposed to having their own set of IT resources.
Health system IT is being utilized by the majority of the largest vendors of electronic health records (EHRs) to support and enhance EHRs. Additionally, as per the measurements from CIO magazine, the medical care industry is seeing remarkable development in information, from 500 petabytes (PB) in 2013 to an expected 25,000 PB by 2020.
In addition, Mellanox Technologies, a manufacturer of storage and server solutions for data centers, announced the availability of SN4000 Ethernet switches in March 2020. Spectrum-3's support ensures that the Ethernet switch is optimized for cloud, Ethernet storage fabric, and AI applications.
The current large and expanding community of cloud builders requires networking components to operate and monitor sprawling data centers to a unique level of customization and flexibility due to the massive growth in demand for cloud-based applications and the use of new technologies like AI, machine learning, and augmented and virtual reality.
Key Market Patterns
Switches Portion is Supposed to Hold a Critical Piece of the pie
Texture switches assume a unique part in diminishing foundation costs by merging server farms. In data centers that share an infrastructure, the building blocks for aggregating server and storage networking are Ethernet switches and fiber channels.
Fabric infrastructure is scalable, allowing the organization's data centers to expand to meet future demands. The functional expense of systems administration in leveled networks diminishes overwhelmingly when likened to the conventional organizations.
Organizations are installing fabric products in their data centers to reduce the overall cost of operating data centers while simultaneously increasing capacity due to the rising cost of electricity, the necessity of big data storage, and cloud adoption.
Additionally, the overhead costs of power and cooling facilities are significantly reduced by effective fabric switches. Rising IT framework interest of firms to increment business execution by giving application answers for its clients at any spot and whenever need level organization design for the ongoing examination of data put away in servers.
With the developing organization traffic of cloud server farms and media transmission server farms, the utilization of 100 GbE switches has expanded. Most 10/40 GbE fabric switches are used in data centers where mission-critical applications are likely to run. However, by 2020, 25/50100 GbE switches will take their place.
It is anticipated that North America will hold a significant share of the market. Data center infrastructure solutions have grown significantly in North America. The demand for new data center infrastructures is being driven by the growth of cloud computing, big data analytics, and mobile broadband.
However, there is a strong demand for the data center fabric market as a result of the expansion of data center infrastructures. The high bandwidth networking fabric market is growing in demand as a result of the increased use of multi-core processor-based servers, the rising demand for virtualized servers that make it easier to run multiple applications on a single server, and the requirement for high-speed data transfer systems.
Due to an increase in the number of hyperscale data centers, the United States currently has the most data centers in the world and is experiencing robust growth in terms of big data volume and traffic. By 2021, the amount of big data stored in data centers worldwide is expected to reach 403 exabytes, with the United States accounting for a significant portion.
In addition, in November 2019, Extreme Networks Inc. announced new capabilities for its Extreme Fabric Automation software, which is available as part of the Extreme Data Center Fabric, in order to augment enterprise IT teams and reduce human error. The SLX 9250 spine switch and the SLX 9150 leaf switch, two new high-performance switches that are embedded with guest virtual machines, have also been announced by the company.
Landscape of Competitors Several major players dominate the data center fabric market, which is highly competitive. It would appear that the market is somewhat concentrated. The businesses are vying for a share of the expanding market, particularly the market for massive data centers. In order to expand their market share and boost their profitability, these businesses are making use of strategic collaborative initiatives. Cisco Systems Inc., Oracle Corporation, and Hewlett-Packard Enterprise Company are just a few of the market's major players.
The BCM8956X family of automotive multilayer Ethernet switches was introduced in March 2019 by Broadcom Inc. to meet the increasing demand for bandwidth, flexibility, security, and time-sensitive networking (TSN) for autonomous and connected vehicles. Additionally, Broadcom's automotive 1000BASE-T1 PHY transceiver, the BCM8988X, has begun shipping production quantities, allowing OEMs to immediately implement Gigabit Ethernet on single-pair UTP cables for in-car networking applications.
In January 2020, Cisco's data center software received proactive problem-solving capabilities. Problems in the network switch fabric can be detected by this software suite, Data Center Network Assurance and Insights, prior to affecting network services.