Research Report. Abstract: Data Center Networking Trends. January By Jon Oltsik With Bob Laliberte and Bill Lundell

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1 Research Reprt Abstract: Data Center Netwrking Trends By Jn Oltsik With Bb Laliberte and Bill Lundell January Enterprise Strategy Grup, Inc. All Rights Reserved.

2 Intrductin Research Objective Research Reprt: Data Center Netwrking Trends The primary bjective f this ESG research study was t survey netwrking prfessinals wrking at enterprise rganizatins (i.e., 1,000 emplyees r mre) in rder t better understand the changes taking place in their data centers, hw these changes were impacting their netwrk infrastructure and peratins, hw they were addressing data center netwrking challenges in the shrt-term, and what they were planning fr data center netwrking as they lked t future business and technical requirements. T assess these issues, ESG asked 280 netwrking prfessinals t respnd t questins in areas including: Data center strategy Hw many data centers d large rganizatins have tday? Are large rganizatins cnslidating data centers? If s, hw many data centers d they hpe t eliminate? Are they cnslidating discrete business unit data centers int multi-tenant mega-centers? Are they extending applicatins r IT peratins acrss multiple data centers? If s, which specific applicatins and IT peratins activities are being extended? Is server virtualizatin a substantial cmpnent f their data center strategy? Hw will the use f server virtualizatin change in the future? Data center netwrking envirnment What types f data center netwrking architectures are in place tday? Hw are netwrks segmented? Why is sme segmentatin dne at Layer 2 and sme at Layer 3? What is the standard server-t-netwrk interface tday? Hw will this change in the future? What is the standard data center netwrk cabling infrastructure tday? Hw will this change in the future? Hw is netwrking equipment prvisined and managed? What is the rle f virtual switches tday? Hw will this change? What is the impact f web applicatins n data center netwrks? Data center netwrking peratins challenges What types f netwrk peratins prblems d large rganizatins face tday? What are the biggest netwrk peratins challenges? Which netwrk peratins activities are mst cstly and time cnsuming? Data center netwrking adaptatin Hw is the netwrking rganizatin changing t adjust t data center scaling and peratinal requirements? Are large rganizatins adpting new data center netwrking technlgies? If s, which nes? Are enterprises implementing cnverged data center netwrks (i.e. cmmn netwrk fr strage and data traffic)? If s, why and hw? What changes are taking place in rder t supprt mre server-t-server web applicatin traffic within the data center? 2012, Enterprise Strategy Grup, Inc. All Rights Reserved.

3 Research Reprt: Data Center Netwrking Trends Data center netwrking strategy Which data center netwrking technlgy innvatins are users aware f? Are enterprises interested in data center netwrk fabric architecture? Will they implement data center netwrk fabrics ver time? 2012, Enterprise Strategy Grup, Inc. All Rights Reserved.

4 Research Reprt: Data Center Netwrking Trends Research Methdlgy T gather data fr this reprt, ESG cnducted a cmprehensive nline survey f IT prfessinals frm private- and public-sectr rganizatins in Nrth America (United States and Canada) between Octber 31, 2011 and Nvember 9, T qualify fr this survey, respndents were required t be IT prfessinals respnsible fr evaluating, purchasing, and managing data center netwrking technlgies fr their rganizatin. All respndents were prvided an incentive t cmplete the survey in the frm f cash awards and/r cash equivalents. After filtering ut unqualified respndents, remving duplicate respnses, and screening the remaining cmpleted respnses (n a number f criteria) fr data integrity, we were left with a final ttal sample f 280 IT and netwrking managers. Please see the Respndent Demgraphics sectin f this reprt fr mre infrmatin n these respndents. Nte: Ttals in figures and tables thrughut this reprt may nt add up t 100% due t runding. 2012, Enterprise Strategy Grup, Inc. All Rights Reserved.

5 Research Reprt: Data Center Netwrking Trends Respndent Demgraphics The data presented in this reprt is based n a survey f 280 qualified respndents. The figures belw detail the demgraphics f the respndent base, including individual respndents jb respnsibilities, as well as respndent rganizatins ttal number f emplyees, primary industry, and annual revenue. Respndents by Jb Respnsibility Respndents current jb respnsibility is shwn in Figure 1. Figure 1. Survey Respndents, by Jb Respnsibility Which f the fllwing best describes yur current respnsibility within yur rganizatin?? (Percent f respndents, N=280) IT staff, 4% Other, 2% IT management, 41% Senir IT management (e.g., CIO, VP f IT, Directr f IT, etc.), 53% Surce: Enterprise Strategy Grup, Respndents by Number f Emplyees The number f emplyees in respndent rganizatins is shwn in Figure 2. Figure 2. Survey Respndents, by Number f Emplyees Hw many ttal emplyees des yur rganizatin have wrldwide? (Percent f respndents, N=280) 20,000 r mre, 24% 1,000 t 2,499, 20% 10,000 t 19,999, 14% 2,500 t 4,999, 21% 5,000 t 9,999, 21% Surce: Enterprise Strategy Grup, , Enterprise Strategy Grup, Inc. All Rights Reserved.

6 Respndents by Industry Research Reprt: Data Center Netwrking Trends Respndents were asked t identify their rganizatin s primary industry. In ttal, ESG received cmpleted, qualified respnses frm individuals in 19 distinct vertical industries, plus an Other categry. Respndents were then gruped int the brader categries shwn in Figure 3. Figure 3. Survey Respndents, by Industry What is yur rganizatin s primary industry? (Percent f respndents, N=280) Other, 20% Manufacturing, 21% Retail/Whlesale, 5% Business Services (accunting, cnsulting, legal, etc.), 5% Cmmunicatins & Media, 8% Health Care, 10% Gvernment (federal/natinal, state/prvince/cunty /municipal/ther lcal gvernment), 14% Financial (banking, securities, insurance), 19% Surce: Enterprise Strategy Grup, Respndents by Annual Revenue Respndent rganizatins annual revenue is shwn in Figure 4. Figure 4. Survey Respndents, by Annual Revenue What is yur rganizatin s ttal annual revenue ($US)? (Percent f respndents, N=280) $20 billin r mre, 15% Nt applicable (e.g., public sectr, nnprfit), 8% Less than $100 millin, 3% $100 millin t $499 millin, 14% $10 billin t $ billin, 9% $500 millin t $999 millin, 15% $5 billin t $9.999 billin, 12% $1 billin t $4.999 billin, 26% Surce: Enterprise Strategy Grup, , Enterprise Strategy Grup, Inc. All Rights Reserved.

7 Research Reprt: Data Center Netwrking Trends Cntents List f Figures... 3 List f Tables... 4 Executive Summary... 5 Reprt Cnclusins... 6 Intrductin... 8 Research Objective... 8 Research Findings Enterprise Data Center Prfile Data Center Technlgies Virtual Switch Use Netwrking Organizatins in Transitin Data Center Netwrking Is Fraught With Many Challenges Web Applicatin Impact n Data Center Netwrks The Changing Data Center Netwrking Landscape Virtual Switching and the Physical Netwrk The Need fr Speed Netwrk Cnvergence Data Center Switching Changes Research Implicatins Research Implicatins fr Enterprise IT & Business Prfessinals Research Implicatins fr Technlgy Vendrs Research Methdlgy Respndent Demgraphics Respndents by Jb Respnsibility Respndents by Number f Emplyees Respndents by Industry Respndents by Annual Revenue , Enterprise Strategy Grup, Inc. All Rights Reserved.

8 Research Reprt: Data Center Netwrking Trends List f Figures Figure 1. Number f Wrldwide Data Centers Figure 2. Data Center Cnslidatin Prjects Figure 3. Percentage f Data Centers Cnslidated Figure 4. Multi-tenant Data Centers Figure 5. Technlgy Activities Perfrmed acrss Multiple Data Centers Figure 6. Ttal Physical x86 Servers Figure 7. Ttal Virtual Machines, Nw and 24 Mnths frm Nw Figure 8. Average Number f Virtual Machines per Physical x86 Server, Nw and 24 Mnths frm Nw Figure 9. Number f Data Center VLANs and IP Subnets Figure 10. Change in the Number f Data Center VLANs and IP Subnets Figure 11. Change in the Number f Physical and Virtual Devices per L2 VLAN and L3 Subnet Figure 12. Criteria fr Determining the Use f L2 Switching vs. L3 Ruting Figure 13. Server-t-Netwrk I/O Interface Standards Figure 14. Drivers fr Adptin f 10 GbE as Standard Netwrk I/O Interface Figure 15. Intra-Data Center Netwrk Cabling Infrastructure Standards Figure 16. Reasns fr Standardizing n Fiber Figure 17. Virtual Switch Implementatins Figure 18. Why Organizatins Use Virtual Switches Prvided Within Server Virtualizatin Platfrms Figure 19. Why Organizatins Use r Plan t Use Virtual Switches Prvided by Netwrking Vendrs Figure 20. Netwrking Organizatin Changes Figure 21. Rle f Netwrking Team in Enterprise Business Applicatins Figure 22. Netwrk Operatins Prblems Figure 23. Mst Cstly and Time Cnsuming Netwrking Activities Figure 24. Cnfiguring Data Center Switches Figure 25. Biggest Data Center Netwrking Challenges Figure 26. Usage f Web-based Applicatins Figure 27. Impact f Web-based Applicatins n Data Center Netwrks Figure 28. Familiarity with New Data Center Netwrking Technlgies Figure 29. Awareness f Netwrking Technlgies that Offlad Virtual Switching t Physical Netwrk Infrastructure Figure 30. Usage f Netwrking Technlgies that Offlad Virtual Switching t Physical Netwrk Infrastructure 34 Figure 31. Netwrk Security Strategies Figure 32. Deplyment f 40 GbE/100 GbE Equipment Figure 33. Factrs Influencing Current Usage r Planned Deplyment f 40 GbE/100 GbE Equipment Figure 34. Cnverged Data Center Netwrks Figure 35. Drivers fr Cnverged Data Center Netwrks Figure 36. Strage Technlgies Being Used r Cnsidered as Part f Cnverged Data Center Netwrks Figure 37. Physical Data Center Netwrk Ethernet Switching Architecture Figure 38. Usage f Switch Clustering Technlgies Figure 39. Drivers fr Switch Clustering Technlgies Figure 40. Familiarity with Flat Data Center Fabric Figure 41. Plans fr Implementing Flat Data Center Fabrics Figure 42. Survey Respndents, by Jb Respnsibility Figure 43. Survey Respndents, by Number f Emplyees Figure 44. Survey Respndents, by Industry Figure 45. Survey Respndents, by Annual Revenue , Enterprise Strategy Grup, Inc. All Rights Reserved.

9 Research Reprt: Data Center Netwrking Trends List f Tables Table 1. Netwrk Operatins Prblems fr Organizatins with Mre than 10 Data Centers Table 2. Cnfiguring Data Center Switches fr Organizatins with Mre than 10 Data Centers Table 3. Factrs Influencing Current Usage r Planned Deplyment f 40 GbE/100 GbE Equipment fr Organizatins with Mre than 10 Data Centers All trademark names are prperty f their respective cmpanies. Infrmatin cntained in this publicatin has been btained by surces The Enterprise Strategy Grup (ESG) cnsiders t be reliable but is nt warranted by ESG. This publicatin may cntain pinins f ESG, which are subject t change frm time t time. This publicatin is cpyrighted by The Enterprise Strategy Grup, Inc. Any reprductin r redistributin f this publicatin, in whle r in part, whether in hard-cpy frmat, electrnically, r therwise t persns nt authrized t receive it, withut the express cnsent f the Enterprise Strategy Grup, Inc., is in vilatin f U.S. Cpyright law and will be subject t an actin fr civil damages and, if applicable, criminal prsecutin. Shuld yu have any questins, please cntact ESG Client Relatins at (508) , Enterprise Strategy Grup, Inc. All Rights Reserved.

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