Data Center Consolidation Drives Need for High Speed Connections

Centralization has once again become the watchword in the data center. To simplify management, businesses are collapsing autonomous devices into central products. As this occurs, companies find themselves with more information stored in select locations and need fast network links to move that data. While many IT market segments have been struggling lately, high-speed data center connections have shown dramatic growth, according to market research firm DellOro Group.Recently, the IT industry has started to move from stand alone servers, storage area network devices, and network equipment to integrated systems capable of supporting all of those functions. As a result, businesses are redesigning their applications and placing more of the information in central locations. Companies now need fast network connection to support this new design.

DellOro found that 10G bps Ethernet Network Adapter and LAN on the Motherboard port shipments doubled sequentially during the third quarter of 2009. Broadcom and Intel benefitted from the growth in this market sector. 8G bps Fibre Channel Host Bus Adapters also demonstrated strong growth in the fall. Emulex and QLogic we buoyed by the growing interest in 8GB Fibre Channel products.

The movement to more centralized data centers is occurring in small and medium businesses. This change is driving interest in high speed network connections. As demand for these devices increases, pricing drops. Consequently, it appears that the pieces are falling into place, so small and medium businesses can make the change, if it fits with their long term plans.