The Implications of Cloud on the Data Center

Globally, the cloud computing market is experiencing a sustained and consistent growth across industries. A Forbes article predicted that the worldwide cloud computing market will grow at a 36% compound annual growth rate (CAGR) through 2016, reaching a market size of $19.5 billion by 2016.

A Cisco Global Cloud Index report, too, has presented some very interesting statistics in this regard. The report states that by 2017 the amount of traffic crossing the Internet and IP WAN networks is projected to reach 1.4 zb per year. However, the amount of traffic crossing the Data Center is already 2.6 zb per year. What’s more, by 2017 the amount of traffic crossing the data center will be tripled to reach 7.7 zb per year. That’s a stunning 25% CAGR. Another very interesting piece of statistic from the same report is that by 2017 the data center alone would be handling 69% of the cloud traffic. These numbers clearly accentuate the fact that not only is the cloud computing market here to stay and evolving together with the data center, but it is also pushing the sales of products and services of data center vendors and service providers.

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