分类目录归档:data center

Impact of Chip Shortage on Datacenter Industry

As the global chip shortage let rip, many chip manufacturers have to slow or even halt semiconductor production. Makers of all kinds of electronics such as switches, PCs, servers are all scrambling to get enough chips in the pipeline to match the surging demand for their products. Every manufacturer, supplier, and solution provider in datacenter industry is feeling the impact of the ongoing chip scarcity. However, relief is nowhere in sight yet.

What’s Happening?

Due to the rise of AI and cloud computing, datacenter chips have been a highly charged topic in recent times. As networking switches and modern servers, indispensable equipment in datacenter applications, use more advanced components than an average consumer’s PC, naturally, when it comes to chip manufacturers and suppliers, data centers are given the top priority. However, with the demand for data center machines far outstripping supply, chip shortages may continue to be pervasive across the next few years. Coupled with economic uncertainties caused by the pandemic, it further puts stress on datacenter management.

According to a report from the Dell’Oro Group, robust datacenter switch sales over the past year could foretell a looming shortage. As the mismatch in supply and demand keeps growing, enterprises looking to buy datacenter switches face extended lead times and elevated costs over the course of the next year.

“So supply is decreasing and demand is increasing,” said Sameh Boujelbene, leader of the analyst firm’s campus and data-center research team. “There’s a belief that things will get worse in the second half of the year, but no consensus on when it’ll start getting better.”

Back in March, Broadcom said that more than 90% of its total chip output for 2021 had already been ordered by customers, who are pressuring it for chips to meet booming demand for servers used in cloud data centers and consumer electronics such as 5G phones.

“We intend to meet such demand, and in doing so, we will maintain our disciplined process of carefully reviewing our backlog, identifying real end-user demand, and delivering products accordingly,” CEO Hock Tan said on a conference call with investors and analysts.

Major Implications

Extended Lead Times

Arista Networks, one of the largest data center networking switch vendors and a supplier of switches to cloud providers, foretells that switch-silicon lead times will be extended to as long as 52 weeks.

“The supply chain has never been so constrained in Arista history,” the company’s CEO, Jayshree Ullal, said on an earnings call. “To put this in perspective, we now have to plan for many components with 52-week lead time. COVID has resulted in substrate and wafer shortages and reduced assembly capacity. Our contract manufacturers have experienced significant volatility due to country specific COVID orders. Naturally, we’re working more closely with our strategic suppliers to improve planning and delivery.”

Hock Tan, CEO of Broadcom, also acknowledged on an earnings call that the company had “started extending lead times.” He said, “part of the problem was that customers were now ordering more chips and demanding them faster than usual, hoping to buffer against the supply chain issues.”

Elevated Cost

Vertiv, one of the biggest sellers of datacenter power and cooling equipment, mentioned it had to delay previously planned “footprint optimization programs” due to strained supply. The company’s CEO, Robert Johnson, said on an earnings call, “We have decided to delay some of those programs.”

Supply chain constraints combined with inflation would cause “some incremental unexpected costs over the short term,” he said, “To share the cost with our customers where possible may be part of the solution.”

“Prices are definitely going to be higher for a lot of devices that require a semiconductor,” says David Yoffie, a Harvard Business School professor who spent almost three decades serving on the board of Intel.

Conclusion

There is no telling how the situation will continue playing out and, most importantly, when supply and demand might get back to normal. Opinions vary on when the shortage will end. The CEO of chipmaker STMicro estimated that the shortage will end by early 2023. Intel CEO Patrick Gelsinger said it could last two more years.

As a high-tech network solutions and services provider, FS has been actively working with our customers to help them plan for, adapt to, and overcome the supply chain challenges, hoping that we can both ride out this chip shortage crisis. At least, we cannot lose hope, as advised by Bill Wyckoff, vice president at technology equipment provider SHI International, “This is not an ‘all is lost’ situation. There are ways and means to keep your equipment procurement and refresh plans on track if you work with the right partners.”

Article Source: Impact of Chip Shortage on Datacenter Industry

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Infographic – What Is a Data Center?

Data Center White Space and Gray Space

Nowadays, with the advent of the 5G era and the advancement of technology, more and more enterprises rely on IT for almost any choice. Therefore, their demand for better data center services has increased dramatically.

However, due to the higher capital and operating costs caused by the cluttered distribution of equipment in data centers, the space has become one of the biggest factors restricting data centers. In order to solve that problem, it’s necessary to optimize the utilization of existing space, for example, to consolidate white space and gray space in data centers.

What is data center white space?

Data center white space refers to the space where IT equipment and infrastructure are located. It includes servers, storage, network gear, racks, air conditioning units, power distribution systems.

White space is usually measured in square feet, ranging anywhere from a few hundred to a hundred thousand square feet. It can be either raised floor or hard floor (solid floor). Raised floors are developed to provide locations for power cabling, tracks for data cabling, cold air distribution systems for IT equipment cooling, etc. It can have access to all elements easily. Different from raised floors, cooling and cabling systems for hard floors are installed overhead. Today, there is a trend from raised floors to hard floors.

Typically, the white space area is the only productive area where an enterprise can utilize the data center space. Moreover, online activities like working from home have increased rapidly in recent years, especially due to the impact of COVID-19, which has increased business demand for data center white space. Therefore, the enterprise has to design data center white space with care.data center white space

What is data center gray space?

Different from data center white space, data center gray space refers to the space where back-end equipment is located. This includes switchgear, UPS, transformers, chillers, and generators.

The existence of gray space is to support the white space, therefore the amount of gray space in equipment is determined by the space assigned for data center white space. The more white space is needed, the more backend infrastructure is required to support it.data center gray space

How to improve the efficiency of space?

Building more data centers and consuming more energy is not a good option for IT organizations to make use of data center space. To increase data center sustainability and reduce energy costs, it’s necessary to use some strategies to combine data center white space and gray space, thus optimizing the efficiency of data center space.

White Space Efficiency Strategies

  • Virtualized technology: The technology of virtualization can integrate many virtual machines into physical machines, reducing physical hardware and saving lots of data center space. Virtualization management systems such as VMware and Hyper V can create a virtualized environment.
  • Cloud computing resources: With the help of the public cloud, enterprises can transfer data through the public internet, thus reducing their needs for physical servers and other IT infrastructure.
  • Data center planning: DCIM software, a kind of data center infrastructure management tool, can help estimate current and future power and server needs. It can also help data centers track and manage resources and optimize their size to save more space.
  • Monitor power and cooling capacity: In addition to the capacity planning about space, monitoring power, and cooling capacity is also necessary to properly configure equipment.

Gray Space Efficiency Strategies

  • State-of-art technologies: Technologies like flywheels can increase the power of the machine, reducing the number of batteries required for the power supply. Besides, the use of solar panels can reduce data center electricity bills. And water cooling can also help reduce the costs of cooling solutions.

Compared with white space efficiency techniques, grace space efficiency strategies are pretty less. However, the most efficient plan is to combine data center white space with gray space. By doing so, enterprises can realize the optimal utilization of data center space.

Article Source: Data Center White Space and Gray Space

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Infographic – What Is a Data Center?

The Internet is where we store and receive a huge amount of information. Where is all the information stored? The answer is data centers. At its simplest, a data center is a dedicated place that organizations use to house their critical applications and data. Here is a short look into the basics of data centers. You will get to know the data center layout, the data pathway, and common types of data centers.

what is a data center

To know more about data centers, click here.

Article Source: Infographic – What Is a Data Center?

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Infographic — Evolution of Data Centers

Why Data Center Location Matters?

When it comes to data center design, location is a crucial aspect that no business can overlook. Where your data center is located matters a lot more than you might realize. In this article, we will walk you through the importance of data center location and factors you should keep in mind when choosing one.

The Importance of Data Center Location

Though data centers can be located anywhere with power and connectivity, the site selection can have a great impact on a wide range of aspects such as business uptime and cost control. Overall, a good data center location can better secure your data center and extend the life of data centers. Specifically, it means lower TCO, faster internet speed, higher productivity, and so on. Here we will discuss two typical aspects that are the major concerns of businesses.

Greater physical security

Data centers have extremely high security requirements, and once problems occur, normal operation will be affected. Of course, security and reliability can be improved by various means, such as building redundant systems, etc. However, reasonable planning of the physical location of a data center can also effectively avoid harm caused by natural disasters such as earthquakes, floods, fires and so on. If a data center is located in a risk zone that is prone to natural disasters, that would lead to longer downtime and more potential damages to infrastructure.

Higher speed and better performance

Where your data center is located can also affect your website’s speed and business performance. When a user visits a page on your website, their computer has to communicate with servers in your data center to access data or information they need. That data is then transferred from servers to their computer. If your data center is located far away from your users who initiate certain requests, information and data will have to travel longer distances. That will be a lengthy process for your users who could probably get frustrated with slow speeds and latency. The result is lost users leaving your site with no plans to come back. In a sense, a good location can make high speed and impressive business performance possible.

Choosing a Data Center Location — Key Factors

Choosing where to locate your data center requires balancing many different priorities. Here are some major considerations to help you get started.

key factors of choosing a data center location

Business Needs

First and foremost, the decision has to be made based on your business needs and market demands. Where are your users? Is the market promising in the location you are considering? You should always build your data center as close as possible to users you serve. It can shorten the time for users to obtain files and data and make for happy customers. For smaller companies that only operate in a specific region or country, it’s best to choose a nearby data center location. For companies that have much more complicated businesses, they may want to consider more locations or resort to third-party providers for more informed decisions.

Natural Disasters

Damages and losses caused by natural disasters are not something any data center can afford. These include big weather and geographical events such as hurricanes, tornadoes, floods, lightning and thunder, volcanoes, earthquakes, tsunamis, blizzards, hail, fires, and landslides. If your data center is in a risk zone, it is almost a matter of time before it falls victim to one. Conversely, a good location less susceptible to various disasters means a higher possibility of less downtime and better operation.

It is also necessary to analyze the climatic conditions of a data center location in order to select the most suitable cooling measures, thus reducing the TCO of running a data center. At the same time, you might want to set up a disaster recovery site that is far enough from the main site, so that it is almost impossible for any natural disaster to affect them at the same time.

Power Supply

The nature of data centers and requirements for quality and capacity determine that the power supply in a data center must be sufficient and stable. As power is the biggest cost of operating a data center, it is very important to choose a place where electricity is relatively cheap.

The factors we need to consider include:

Availability — You have to know the local power supply situation. At the same time, you need to check whether there are multiple mature power grids in alternative locations.

Cost — As we’ve mentioned, power costs a lot. So it is necessary to compare various power costs. That is to say, the amount of power should be viable and the cost of it should be low enough.

Alternative energy sources — You might also want to consider whether there are renewable energy sources such as solar energy, wind energy and air in alternative locations, which will help enterprises to build a greener corporate image.

It is necessary to make clear the local power supply reliability, electricity price, and policies concerning the trend of the power supply and market demand in the next few years.

Other Factors

There are a number of additional factors to consider. These include local data protection laws, tax structures, land policy, availability of suitable networking solutions, local infrastructure, the accessibility of a skilled labor pool, and other aspects. All these things combined can have a great impact on the TCO of your data center and your business performance. This means you will have to do enough research before making an informed decision.

There is no one right answer for the best place to build a data center. A lot of factors come into play, and you may have to weigh different priorities. But one thing is for sure: A good data center location is crucial to data center success.

Article Source: Why Data Center Location Matters?

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The Infrastructure Bill is all set to transform the Fiber Optic & Data Center Industry

In August 2021, the US Senate passed the Infrastructure Bill to revamp the dated setup responsible for latency issues and low connectivity in underserved rural communities. The bill’s passing has led to great excitement amongst various sectors, chief amongst them being the telecom industry. Here’s an overview of how the Infrastructure Bill will affect the fiber optics and Data Center sectors.

What is the Infrastructure Bill and what does it entail?

The recently approved Infrastructure Bill is set to make considerable headway in bridging the great digital divide: a decade-long problem afflicting some 40 million Americans. The Senate-passed bill of $1.2 trillion hopes to improve the aging American Infrastructure and boost various sectors via increased funding and jobs. $65 billion from this grant is exclusively allocated for enhanced internet experiences in underprivileged regions.

Low bandwidth internet has been creating a great digital divide in various American states for a long time. Communities on the underprivileged side of this divide have suffered from maladjustment in the new virtual norm. Poor connectivity for these communities has meant inefficiency in carrying out routine tasks, failure in maintaining uninterrupted workflows, and severed communications. Digital solutions that have become part and parcel of many Americans, such as e-learning, telehealth, etc., are still somewhat of an anomaly for these regions.

America needs a rejuvenated infrastructure that enables these communities with a secure, high-quality, and super-fast connection.

The bill’s passage is said to remove these barriers in the underserved regions. However, this will also call for a joint deliverance from all parties involved, including government bodies, the telecommunications industry, and the fiber optics/ data center sectors. These are major sectors poised to help America close the great digital divide and successfully make the virtual shift.

How will this bill affect the fiber optics and data center sector?

One of the major components of this project is the expansion of the internet infrastructure. This, along with effectively and efficiently building out in remote regions while eliminating inconsistent right-of-way rules, will result in adequate and speedy connections. There are many other complexities involved, but what the underprivileged communities, such as the Midwest, need most are 5G wireless services and robust fiber deployment.

Telecommunications and Data Center industries have always found infrastructure expansion difficult in places such as the Midwest due to natural physical barriers. These include the largely uneven landscape of mountains, roughly-cleared forests, and expanses of water. All of these have led to poor internet connections in these regions. Introducing the 5G wireless service can be a great way to overcome the handicaps of nature. But setting up these services would require vigorous fiber optic cable deployments and construction of powerful data centers.

The fiber optics sector is the chief component against which the entire digital network is buttressed. This is the network of speedy internet and empowered consumers who are facilitated 24/7 with high-quality, uninterrupted connections and modern digital services.

Modern digital services rely heavily on network densification and evolving technologies such as the blockchain, AI, and the IoT. Fiber optics is responsible for supporting most of these modernized services. Network densification is an efficient way to increase network capacity without requiring more rack space, but this also means constructing a large number of data centers in these areas.

To make the 5G technology work, the fiber optics industry will have to build data centers and cell towers in close proximity to eliminate latency problems through agile deployment. This 5G wireless fiber-based network of data centers will provide these remote regions with the resiliency and scaling needed to maintain critical speeds and higher bandwidths.

This kind of networking will also require all stakeholders, network enterprises, and local government bodies to work together and ensure that all populations can derive massive benefits from the revamped Infrastructure.

The federal government has already taken various initiatives to maximize funding for quicker broadband infrastructure deployment and more can be added to the allocated amount in the coming years. The National Digital Inclusion Alliance reported on the number of measures taken by the government to improve the digital literacy efforts and bring together pockets of communities via a compact digital resource network. As these state and federal-backed initiatives help overcome problems of connectivity caused by physical barriers, underserved populations will finally access reliable connectivity.

Some potential pitfalls to watch out for with the Infrastructure Bill

While there is a great buzz surrounding the opportunities and innovations stemming from the bill’s passing, there are some potential pitfalls that both governments and industry enterprises must look out for.

The prospect of billions in federal grants means that multiple telecommunication and fiber optics enterprises will be vying for the funds. If too many telecoms in one region get access to the federal grant, the result could be an overbuilding of the digital infrastructure. This may put an excessive burden on the electrical energy sector and cause other environmental hazards.

It is also feared that the grant will keep new tech companies at bay by providing already established tech enterprises access to rural areas. The result could be a stifling of innovations in broadband internet technology.

The future of fiber optics and datacenter sector post-Infrastructure Bill

The 5G fiber technology offers the fastest internet connectivity helping businesses set greater targets and achieve better results. With the release of grants from the federal government, the industry will undoubtedly expand to accommodate the growing need for innovative solutions.

According to one study, the fiber industry will grow at 8.5% in the coming years. By 2025, the fiber optics sector is estimated to become a seven billion-dollar industry.

Numerous cities plan for a fiber-based internet network to create what Wired news calls the “internet utopia”. An ambitious network provider has already planned for an 8000-mile long submarine underwater fiber optic cable connecting Los Angeles and Hong Kong to support the increasing demand for Google and Facebook.

There is a great buzz surrounding the expansion of the 5G wireless network and what it means for the great virtual shift in the country. It will not be long before we begin seeing the role of fiber optics and data centers in newer, modern, and diversified digital applications and devices accessible by all.

Article Source: The Infrastructure Bill is all set to transform the Fiber Optic & Data Center Industry

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