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Ethernet Switch Sales Emphasize Importance of Networking in the Data Center

Virtualization, cloud computing and the growing number of connected devices in enterprise and consumer settings are making network equipment a critical component in the data center market.

However, many companies made major networking upgrades in 2010 forcing data center network equipment growth to slow to a crawl in 2011, according to a recent Infonetics Research report.

The study found 2010 was a year of major expansion in the data center network equipment industry because pent-up demand from the recession led to many hardware upgrades in server racks.

Though expansion in 2011 has not kept pace with 2010, the market is still improving. The improvement is just happening at a more ponderous rate.

While most of the data center network equipment market has slowed, the purpose-built data center Ethernet switch sector is experiencing rapid expansion, said Matthias Machowinski, directing analyst for enterprise networks and video for Infonetics Research.

Upgrading to state-of-the-art equipment is key to remaining competitive in the current data center industry. Recently, the Gulf Bank completed a major project to build a new data center in Huwally, Kuwait, to offer advanced services in the region.