Data Center Interconnect (DCI) Platforms – Snapshot
Exceptional rise in internet traffic with a dynamic migration to cloud-based services is forcing content service, network services providers, and internet service providers to enhance the connectivity of data centers. Thus, vendors of data centers are focused on building an optimized data centers interconnect (DCI) infrastructure, which is scalable, efficient, and secure. DCI is an emerging optical technology design that connects two or more than two data centers. DCI technology is supported over any pre-owned fiber or dark fiber technology, owned by any organization. DCI technology includes wavelength division multiplexing-based solutions, Ethernet over MPLS, virtual private LAN service, overlay transport virtualization (OTV), with clustering technologies such as virtual switching system (VSS) and virtual port channel (VPC). All these are utilized to connect data centers and bundle the complex links between the data center solutions. DCI is built for all types of industry in order to provide them power-efficient, high-speed optical transport facility to have smooth real-time connectivity, which eases the business transactions among various data centers. DCI ensures multiple collaborations and configurations between network service providers, interconnect content providers (ICPs), cloud, and internet service providers (ISPs).
Data center has become an important part of organizations and almost every industry dealing in the technology media sector is using it or has its own data center. DCI is a comprehensive real-time solution that helps in connectivity, data storage, and offers quick access to a huge database. It is a more cost-effective solution than the traditional data center, which witnessed high demand around five years ago. Therefore, companies across industries have increased the use of Data Center Interconnect (DCI) to work more efficiently and smoothly. Organizations are using DCI not only for data storage but also for real-time disaster recovery & business continuity and content delivery management. Moreover, the data center interconnect (DCI) market in some developed countries such as the U.S., the U.K., and China is witnessing a mature phase. Increasing dependence of large and small enterprises on DCI for better network management at an affordable cost is driving the market in developing countries regions such as Asia, Africa, and the Middle East.
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Globally, the data center interconnect (DCI) market can be segmented based on component, application, industry, and region. In terms of component, the market can be classified into solutions and services. The solutions segment of the data center interconnect (DCI) market is further sub-segmented into layer 2-ethernet, open optical line systems (OOLS), and packet optical networking, while the services segment is further split into professional services and managed services. In terms of application, the market can be divided into real-time disaster recovery & business continuity, federated data storage, and content delivery. Based on industry, the data center interconnect (DCI) market can be segregated into communication service providers (CSP), carrier neutral providers (CNP) / internet content providers (ICP), government & public sector, banking and finance, healthcare, media & entertainment, retail &E-commerce, and others (automotive).
Based on region, the global data center interconnect (DCI) market can be segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America dominates the data center interconnect (DCI) market, followed by Europe and a few countries in Asia Pacific. Real-time disaster recovery & business continuity and data storage are key applications driving the data center interconnect (DCI) market in these regions. The market in MEA is also projected to expand at a moderate pace as compared to other regions, due to the increasing investments by major data center vendors such as Facebook, Google, Microsoft, and Amazon.
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Key players operating in the market are adopting strategies such as alliances, partnerships, and merger & acquisitions. The data center interconnect (DCI) market is quite competitive; however, it is dominated by a few key players. Major players operating in the global data center interconnect (DCI) market include ADVA Optical Networking, Avaya, Ciena Corporation, Cisco Systems, Colt Technology Services, Coriant, Dell, Fujitsu, Huawei Technologies Co., Ltd., IBM, Infinera Corporation, Juniper Networks Inc, Nokia Corporation, VMware, Inc, and ZTE Corporation.