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Cloud expansion continuing, get ready for network changes

By Max Burkhalter
September 3, 2013

Cloud computing has already begun impacting just about every aspect of IT operations, and the network is not immune. Plenty of companies find themselves in a situation where their WAN setup is not equipped to handle the cloud. If you find yourself in this situation, or thing you may end up there soon based on corporate strategy, get ready for more disruption. Annual spending on public cloud systems is set to expand by a compound annual growth rate of approximately 23.5 percent during the period from 2013 to 2017, a recent IDC study found.

Cloud computing can put a major strain on the network because most corporate setups put the majority of resources in the LAN, while web-based data usually comes in through the WAN or other telecom networks. This could mean more companies end up investing in MAN infrastructure or advanced telecom services in an effort to support the cloud.

Taking a close look at public cloud growth
According to the study, public cloud spending will hit approximately $47.4 billion in 2013. This represents a substantial figure, but the number is dwarfed by anticipated cloud spending for 2017, when investments in the technology are expected to hit $107 billion. To put that figure in perspective, consider this - IDC expects cloud spending to increase at a rate that is five-times faster than that of expenses for traditional IT systems during the same period.

The cloud is beginning to take over, andFrank Gens, senior vice president and chiefanalyst at IDC, explained that innovation is central to the technology's progression.

"The first wave of cloud services adoption was focused on improving the efficiency of the IT department," said Gens. "Over the next several years, the primary driver for cloud adoption will shift from economics to innovation as leading-edge companies invest in cloud services as the foundation for new competitive offerings. The emergence of cloud as the core for new 'business as a service' offerings will accelerate cloud adoption and dramatically raise the cloud model's strategic value beyond CIOs to CXOs of all types."

Cloud computing and the network
The telecom network is vital when considering cloud plans, putting service providers in a situation in which advanced network options powered by optical technologies could become important. Meeting end-user demand depends on balancing the performance and cost aspects of network service options, making media converters a vital tool in the telecom landscape. Advanced fiber networks could prove essential in delivering cloud data to end users getting the job done in a variety of locations.

Perle has an extensive range of Managed and Unmanaged Fiber Media Converters to extended copper-based Ethernet equipment over a fiber optic link, multimode to multimode and multimode to single mode fiber up to 160km.

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