Story image

Report finds the on-prem data centre isn’t dying – it’s flourishing

11 Jul 2018

When cloud computing stormed onto the scene there were many that believed the traditional on-premises data centre had met its match.

Enterprises have been adopting cloud services for a number of years now and so there was reason to believe the believers, but the rise of multi-cloud has provided a sunny forecast for the on-prem data centre.

A report from IHS Markit, a global provider of critical information and analytics, found that enterprises are continuing to make significant investments into their on-prem data centre infrastructure as they construct their multi-clouds.

IHS Markit senior research director and advisor for cloud and data centre Cliff Grossner says the on-prem data centre is evolving with server density continuing to increase, the network moving to higher speeds, and increased software-defined storage with solid state drive (SSD) adoption.

“Application architectures are evolving with the increased adoption of software containers and micro-services coupled with a Dev/Ops culture of rapid and frequent software builds,” says Grossner.

“In addition, we see new technologies such as artificial intelligence (AI) and machine learning (ML) incorporated into applications. These applications consume network bandwidth in a very dynamic and unpredictable manner and make new demands on servers for increased parallel computation.”

Some further highlights of the IHS Markit report include:

  • Respondents expect an increase of more than double the average number of physical servers in their data centres by 2019
  • The top drivers for data centre investment are security and application performance (75 percent of respondents) and scalability (71 percent)
  • Cisco, Dell, HPE, Juniper, and Huawei were identified as the top 5 data centre ethernet switch vendors by respondents ranking the top 3 vendors in each of 8 selection criteria.
  • 73 percent of servers are expected to be running hypervisors or containers by 2019, up from 70 percent now
  • Top data centre fabric are high speed (68 percent of respondents), automated VM movement (62 percent) and support for network virtualisation protocols (62 percent)
  • 53 percent of respondents intent to increase investment in software-defined storage, 52 percent in NAS, and 42 percent in SSD
  • 30 percent of respondents indicated they are running general purpose IT applications, 22 percent are running productivity applications such as Microsoft Office, and 18 percent are running collaboration tools such as email, SharePoint, and unified communications in their data centres

“New software technologies are driving more diverse compute architectures. An example is the development of multi-tenant servers (VMs and software containers), which is requiring new features in CPU silicon to support these technologies,” says Grossner.

“AI and ML have given rise to a market for specialised processors capable of high degrees of parallelism (such as GPGPUs and the Tensor Processing Unit from Google). We can only expect this trend to continue and new compute architectures emerging in response.”

The IHS Markit Data Center Networks Intelligence Service provides quarterly worldwide and regional market size, vendor market share, forecasts through 2022, analysis and trends.

Vendors tracked include A10, ALE, Arista, Array Networks, Aryaka, Barracuda, Cisco, Citrix, CloudGenix, CradlePoint, Dell, F5, FatPipe, HPE, Huawei, Hughes, InfoVista, Juniper, KEMP, Nokia (Nuage), Radware, Riverbed, Silver Peak, Talari, TELoIP, VMware, ZTE and others.

Dropbox invests in hosting data inside Australia
Global collaboration platform Dropbox has announced it will now host Australian customer files onshore to support its growing base in the country.
Opinion: Meeting the edge computing challenge
Scale Computing's Alan Conboy discusses the importance of edge computing and the imminent challenges that lie ahead.
Alibaba Cloud discusses past and unveils ‘strategic upgrade’
Alibaba Group's Jeff Zhang spoke about the company’s aim to develop into a more technologically inclusive platform.
Protecting data centres from fire – your options
Chubb's Pierre Thorne discusses the countless potential implications of a data centre outage, and how to avoid them.
Opinion: How SD-WAN changes the game for 5G networks
5G/SD-WAN mobile edge computing and network slicing will enable and drive innovative NFV services, according to Kelly Ahuja, CEO, Versa Networks
TYAN unveils new inference-optimised GPU platforms with NVIDIA T4 accelerators
“TYAN servers with NVIDIA T4 GPUs are designed to excel at all accelerated workloads, including machine learning, deep learning, and virtual desktops.”
AMD delivers data center grunt for Google's new game streaming platform
'By combining our gaming DNA and data center technology leadership with a long-standing commitment to open platforms, AMD provides unique technologies and expertise to enable world-class cloud gaming experiences."
Inspur announces AI edge computing server with NVIDIA GPUs
“The dynamic nature and rapid expansion of AI workloads require an adaptive and optimised set of hardware, software and services for developers to utilise as they build their own solutions."