The Chip Shortage: Current Challenges, Predictions, and Potential Solutions

The COVID-19 pandemic caused several companies to shut down, and the implications were reduced production and altered supply chains. In the tech world, where silicon microchips are the heart of everything electronic, raw material shortage became a barrier to new product creation and development.

During the lockdown periods, some essential workers were required to stay home, which meant chip manufacturing was unavailable for several months. By the time lockdown was lifted and the world embraced the new normal, the rising demand for consumer and business electronics was enough to ripple up the supply chain.

Below, we’ve discussed the challenges associated with the current chip shortage, what to expect moving forward, and the possible interventions necessary to overcome the supply chain constraints.

Challenges Caused by the Current Chip Shortage

As technology and rapid innovation sweeps across industries, semiconductor chips have become an essential part of manufacturing – from devices like switches, wireless routers, computers, and automobiles to basic home appliances.

devices

To understand and quantify the impact this chip shortage has caused spanning the industry, we’ll need to look at some of the most affected sectors. Here’s a quick breakdown of how things have unfolded over the last eighteen months.

Automobile Industry

in North America and Europe had slowed or stopped production due to a lack of computer chips. Major automakers like Tesla, Ford, BMW, and General Motors have all been affected. The major implication is that the global automobile industry will manufacture 4 million fewer cars by the end of 2021 than earlier planned, and it will forfeit an average of $110 billion in revenue.

Consumer Electronics

Consumer electronics such as desktop PCs and smartphones rose in demand throughout the pandemic, thanks to the shift to virtual learning among students and the rise in remote working. At the start of the pandemic, several automakers slashed their vehicle production forecasts before abandoning open semiconductor chip orders. And while the consumer electronics industry stepped in and scooped most of those microchips, the supply couldn’t catch up with the demand.

Data Centers

Most chip fabrication companies like Samsung Foundries, Global Foundries, and TSMC prioritized high-margin orders from PC and data center customers during the pandemic. And while this has given data centers a competitive edge, it isn’t to say that data centers haven’t been affected by the global chip shortage.

data center

Some of the components data centers have struggled to source include those needed to put together their data center switching systems. These include BMC chips, capacitors, resistors, circuit boards, etc. Another challenge is the extended lead times due to wafer and substrate shortages, as well as reduced assembly capacity.

LED Lighting

LED backlights common in most display screens are powered by hard-to-find semiconductor chips. The prices of gadgets with LED lighting features are now highly-priced due to the shortage of raw materials and increased market demand. This is expected to continue up to the beginning of 2022.

Renewable Energy- Solar and Turbines

Renewable energy systems, particularly solar and turbines, rely on semiconductors and sensors to operate. The global supply chain constraints have hurt the industry and even forced some energy solutions manufacturers like Enphase Energy to

Semiconductor Trends: What to Expect Moving Forward

In response to the global chip shortage, several component manufacturers have ramped up production to help mitigate the shortages. However, top electronics and semiconductor manufacturers say the crunch will only worsen before it gets better. Most of these industry leaders speculate that the semiconductor shortage could persist into 2023.

Based on the ongoing disruption and supply chain volatility, various analysts in a recent CNBC article and Bloomberg interview echoed their views, and many are convinced that the coming year will be challenging. Here are some of the key takeaways:

Pat Gelsinger, CEO of Intel Corp., noted in April 2021 that the chip shortage would recover after a couple of years.

DigiTimes Report found that Intel and AMD server ICs and data centers have seen their lead times extend to 45 to 66 weeks.

The world’s third-largest EMS and OEM provider, Flex Ltd., expects the global semiconductor shortage to proceed into 2023.

In May 2021, Global Foundries, the fourth-largest contract semiconductor manufacturer, signed a $1.6 billion, 3-year silicon supply deal with AMD, and in late June, it launched its new $4 billion, 300mm-wafer facility in Singapore. Yet, the company says its production capacity will only increase component production earliest in 2023.

TMSC, one of the leading pure-play foundries in the industry, says it won’t meaningfully increase the component output until 2023. However, it’s optimistic that the company will ramp up the fabrication of automotive micro-controllers by 60% by the end of 2021.

From the industry insights above, it’s evident that despite the many efforts that major players put into resolving the global chip shortage, the bottlenecks will probably persist throughout 2022.

Additionally, some industry observers believe that the move by big tech companies such as Amazon, Microsoft, and Google to design their own chips for cloud and data center business could worsen the chip shortage crisis and other problems facing the semiconductor industry.

article, the authors hint that the entry of Microsoft, Amazon, and Google into the chip design market will be a turning point in the industry. These tech giants have the resources to design superior and cost-effective chips of their own, something most chip designers like Intel have in limited proportions.

Since these tech giants will become independent, each will be looking to create component stockpiles to endure long waits and meet production demands between inventory refreshes. Again, this will further worsen the existing chip shortage.

Possible Solutions

To stay ahead of the game, major industry players such as chip designers and manufacturers and the many affected industries have taken several steps to mitigate the impacts of the chip shortage.

For many chip makers, expanding their production capacity has been an obvious response. Other suppliers in certain regions decided to stockpile and limit exports to better respond to market volatility and political pressures.

Similarly, improving the yields or increasing the number of chips manufactured from a silicon wafer is an area that many manufacturers have invested in to boost chip supply by some given margin.

chip manufacturing

Here are the other possible solutions that companies have had to adopt:

Embracing flexibility to accommodate older chip technologies that may not be “state of the art” but are still better than nothing.

Leveraging software solutions such as smart compression and compilation to build efficient AI models to help unlock hardware capabilities.

LED Lighting

The latest global chip shortage has led to severe shocks in the semiconductor supply chain, affecting several industries from automobile, consumer electronics, data centers, LED, and renewables.

Industry thought leaders believe that shortages will persist into 2023 despite the current build-up in mitigation measures. And while full recovery will not be witnessed any time soon, some chip makers are optimistic that they will ramp up fabrication to contain the demand among their automotive customers.

That said, staying ahead of the game is an all-time struggle considering this is an issue affecting every industry player, regardless of size or market position. Expanding production capacity, accommodating older chip technologies, and leveraging software solutions to unlock hardware capabilities are some of the promising solutions.

Added

This article is being updated continuously. If you want to share any comments on FS switches, or if you are inclined to test and review our switches, please email us via media@fs.com or inform us on social media platforms. We cannot wait to hear more about your ideas on FS switches.

Article Source: The Chip Shortage: Current Challenges, Predictions, and Potential Solutions

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Infographic – What Is a Data Center?

The Most Common Data Center Design Missteps

Introduction

Data center design is to provide IT equipment with a high-quality, standard, safe, and reliable operating environment, fully meeting the environmental requirements for stable and reliable operation of IT devices and prolonging the service life of computer systems. Data center design is the most important part of data center construction directly relating to the success or failure of data center long term planning, so its design should be professional, advanced, integral, flexible, safe, reliable, and practical.

9 Missteps in Data Center Design

Data center design is one of the effective solutions to overcrowded or outdated data centers, while inappropriate design results in obstacles for growing enterprises. Poor planning can lead to a waste of valuable funds and more issues, increasing operating expenses. Here are 9 mistakes to be aware of when designing a data center.

Miscalculation of Total Cost

Data center operation expense is made up of two key components: maintenance costs and operating costs. Maintenance costs refer to the costs associated with maintaining all critical facility support infrastructure, such as OEM equipment maintenance contracts, data center cleaning fees, etc. Operating costs refer to costs associated with day-to-day operations and field personnel, such as the creation of site-specific operational documentation, capacity management, and QA/QC policies and procedures. If you plan to build or expand a business-critical data center, the best approach is to focus on three basic parameters: capital expenditures, operating and maintenance expenses, and energy costs. Taking any component out of the equation, you might face the case that the model does not properly align an organization’s risk profile and business spending profile.

Unspecified Planning and Infrastructure Assessment

Infrastructure assessment and clear planning are essential processes for data center construction. For example, every construction project needs to have a chain of command that clearly defines areas of responsibility and who is responsible for aspects of data center design. Those who are involved need to evaluate the potential applications of the data center infrastructure and what types of connectivity requirements they need. In general, planning involves a rack-by-rack blueprint, including network connectivity and mobile devices, power requirements, system topology, cooling facilities, virtual local and on-premises networks, third-party applications, and operational systems. For the importance of data center design, you should have a thorough understanding of the functionality before it begins. Otherwise, you’ll fall short and cost more money to maintain.

data center

Inappropriate Design Criteria

Two missteps can send enterprises into an overspending death spiral. First of all, everyone has different design ideas, but not everyone is right. Second, the actual business is mismatched with the desired vision and does not support the setting of kilowatts per square foot or rack. Over planning in design is a waste of capital. Higher-level facilities also result in higher operational and energy costs. A data center designer establishes the proper design criteria and performance characteristics and then builds capital expenditure and operating expenses around it.

Unsuitable Data Center Site

Enterprises often need to find a perfect building location when designing a data center. If you don’t get some site-critical information, it will lead to some cases. Large users are well aware of the data center and have concerns about power availability and cost, fiber optics, and irresistible factors. Baseline users often have business model shells in their core business areas that decide whether they need to build or refurbish. Hence, premature site selection or unreasonable geographic location will fail to meet the design requirements.

Pre-design Space Planning

It is also very important to plan the space capacity inside the data center. The raised floor to support ratio can be as high as 1 to 1, while the mechanical and electrical equipment needs enough space to accommodate. In addition, the planning of office and IT equipment storage areas also needed to be considered. Therefore, it is very critical to estimate and plan the space capacity during data center design. Estimation errors can make the design of a data center unsuitable for the site space, which means suspending project re-evaluation and possibly repurchasing components.

Mismatched Business Goals

Enterprises need to clearly understand their business goals when debugging a data center so that they can complete the data center design. After meeting the business goals, something should be considered, such as which specific applications the data center supports, additional computing power, and later business expansion. Additionally, enterprises need to communicate these goals to data center architects, engineers, and builders to ensure that the overall design meets business needs.

Design Limitations

The importance of modular design is well-publicized in the data center industry. Although the modular approach refers to adding extra infrastructure in an immediate mode to preserve capital, it doesn’t guarantee complete success. Modular and flexible design is the key to long-term stable operation, also meets your data center plans. On the power system, you have to take note of adding UPS (Uninterruptible Power Supply) capacity to existing modules without system disruption. Input and output distribution system design shouldn’t be overlooked, it can allow the data center to adapt to any future changes in the underlying construction standards.

Improper Data Center Power Equipment

To design a data center to maximize equipment uptime and reduce power consumption, you must choose the right power equipment based on the projected capacity. Typically, you might use redundant computing to predict triple server usage to ensure adequate power, which is a waste. Long-term power consumption trends are what you need to consider. Install automatic power-on generators and backup power sources, and choose equipment that can provide enough power to support the data center without waste.

Over-complicated Design

In many cases, redundant targets introduce some complexity. If you add multiple ways to build a modular system, things can quickly get complicated. The over-complexity of data center design means more equipment and components, and these components are the source of failure, which can cause problems such as:

  • Human error. Data statistics errors lead to system data vulnerability and increase operational risks.
  • Expensive. In addition to equipment and components, the maintenance of components failure also incurs more charges.
  • Design concept. If maintainability wasn’t considered by the data center design when the IT team has the requirements of operating or servicing, system operational normality even human security get impacts.

Conclusion

Avoid the nine missteps above to find design solutions for data center IT infrastructure and build a data center that suits your business. Data center design missteps have some impacts on enterprises, such as business expansion, infrastructure maintenance, and security risks. Hence, all infrastructure facilities and data center standards must be rigorously estimated during data center design to ensure long-term stable operation within a reasonable budget.

Article Source: The Most Common Data Center Design Missteps

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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 that 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.

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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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What Is a Containerized Data Center: Pros and Cons

The rise of the digital economy has promoted the rapid and vigorous development of industries like cloud computing, Internet of Things, and big data, which have put forward higher requirements for data centers. The drawbacks of traditional data centers have emerged gradually, which are increasingly unable to meet the needs of the market. The prefabricated containerized data center meets the current market demand and will usher in a period of rapid development.

What Is a Containerized Data Center?

A containerized data center comes equipped with data center infrastructures housed in a container. There are different types of containerized data centers, ranging from simple IT containers to comprehensive all-in-one systems integrating the entire physical IT infrastructure.

Generally, a containerized data center includes networking equipment, servers, cooling system, UPS, cable pathways, storage devices, lighting and physical security systems.

A Containerized Data Center
A Containerized Data Center

Pros of Containerized Data Centers

Portability & Durability

Containerized data centers are fabricated in a manufacturing facility and shipped to the end-user in containers. Due to the container appearance, they are flexible to move and cost-saving compared to traditional data centers. What’s more, containers are dustproof, waterproof, and shock-resistant, making containerized data centers suitable for various harsh environments.

Rapid Deployment

Unlike traditional data centers with limited flexibility and difficult management, containerized data centers are prefabricated and pretested at the factory, and are transported to the deployment site for direct set-up. With access to utility power, network and water, the data center can work well. Therefore, the on-site deployment period for containerized data centers is substantially shortened to 2~3 months, demonstrating rapid and flexible deployment.

Energy Efficiency

Containerized data centers are designed for energy efficiency, which effectively limits ongoing operational costs. They enable power and cooling systems to match capacity and workload well, improving work efficiency and reducing over-configuration. More specifically, containerized data centers adopt in-row cooling systems to deliver air to adjacent hotspots with strict airflow management, which greatly improves cold air utilization, saves space and electricity costs in the server room, and reduces power usage efficiency (PUE).

High Scalability

Because of its unique modular design, a containerized data center is easy to install and scale up. More data centers can be added to the modular architecture of containerized data centers according to the requirements to optimize the IT configuration in a data center. With high scalability, containerized data centers can meet the changing demands of the organization rapidly and effortlessly.

Cons of Containerized Data Centers

Limited Computing Performance: Although it contains the entire IT infrastructure, a containerized data center still lacks the same computing capability as a traditional data center.

Low Security: Isolated containerized data centers are more vulnerable to break-ins than data center buildings. And without numerous built-in redundancies, an entire containerized data center can be shut down by a single point of failure.

Lack of Availability: It is challenging and expensive to provide utilities and networks for containerized data centers placed in edge areas.

Conclusion

Despite some shortcomings, containerized data centers have obvious advantages over traditional data centers. From the perspective of both current short-term investment and future long-term operating costs, containerized data centers have become the future trend of data center construction at this stage.

Article Source: What Is a Containerized Data Center: Pros and Cons

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5G and Multi-Access Edge Computing

Over the years, the Internet of Things and IoT devices have grown tremendously, effectively boosting productivity and accelerating network agility. This technology has also elevated the adoption of edge computing while ushering in a set of advanced edge devices. By adopting edge computing, computational needs are efficiently met since the computing resources are distributed along the communication path, i.e., via a decentralized computing infrastructure.

One of the benefits of edge computing is improved performance as analytics capabilities are brought closer to the machine. An edge data center also reduces operational costs, thanks to the reduced bandwidth requirement and low latency.

Below, we’ve explored more about 5G wireless systems and multi-access edge computing (MEC), an advanced form of edge computing, and how both extend cloud computing benefits to the edge and closer to the users. Keep reading to learn more.

What Is Multi-Access Edge Computing

Multi-access edge computing (MEC) is a relatively new technology that offers cloud computing capabilities at the network’s edge. This technology works by moving some computing capabilities out of the cloud and closer to the end devices. Hence data doesn’t travel as far, resulting in fast processing speeds.

Ideally, there are two types of MEC, dedicated MEC and distributed MEC. Dedicated MEC is typically deployed at the customer’s site on a mobile private network and is designed only for one business. On the other hand, distributed MEC is deployed on a public network, either 4G or 5G, and connects shared assets and resources.

With both the dedicated and distributed MEC, applications run locally, and data is processed in real or near real-time. This helps avoid latency issues for faster response rates and decision-making. MEC technology has seen wider adoption in video analytics, augmented reality, location services, data caching, local content distribution, etc.

How MEC and 5G are Changing Different Industries

At the heart of multi-access edge computing are wireless and radio access network technologies that open up different networks to a wide range of innovative services. Today, 5G technology is the ultimate network that supports ultra-reliable low latency communication. It also provides an enhanced mobile broadband (eMBB) capability for use cases involving significant data rates such as virtual reality and augmented reality.

That said, 5G use cases can be categorized into three domains, massive IoT, mission-critical IoT, and enhanced mobile broadband. Each of the three categories requires different network features regarding security, mobility, bandwidth, policy control, latency, and reliability.

Why MEC Adoption Is on the Rise

5G MEC adoption is growing exponentially, and there are several reasons why this is the case. One reason is that this technology aligns with the distributed and scalable nature of the cloud, making it a key driver of technical transformation. Similarly, MEC technology is a critical business transformation change agent that offers the opportunity to improve service delivery and even support new market verticals.

Among the top use cases driving the high level of 5G, MEC implementation includes video content delivery, the emergence of smart cities, smart utilities (e.g., water and power grids), and connected cars. This also showcases the significant role MEC plays in different IoT domains. Here’s a quick overview of the primary use cases:

  • Autonomous vehicles – 5G MEC can help enhance operational functions such as continuous sensing and real-time traffic monitoring. This reduces latency issues and increases bandwidth.
  • Smart homes – MEC technology can process data locally, boosting privacy and security. It also reduces communication latency and allows for fast mobility and relocation.
  • AR/VR – Moving computational capabilities and processes to edge amplifies the immersive experience to users, plus it extends the battery-life of AR/VR devices.
  • Smart energy – MEC resolves traffic congestion issues and delays due to huge data generation and intermittent connectivity. It also reduces cyber-attacks by enforcing security mechanisms closer to the edge.
MEC Adoption
MEC Adoption

Getting Started With 5G MEC

One of the key benefits of adopting 5G MEC technology is openness, particularly API openness and the option to integrate third-party apps. Standards compliance and application agility are the other value propositions of multi-access edge computing. Therefore, enterprises looking to benefit from a flexible and open cloud should base their integration on the key competencies they want to achieve.

One of the challenges common during the integration process is hardware platforms’ limitations, as far as scale and openness are concerned. Similarly, deploying 5G MEC technology is costly, especially for small-scale businesses with limited financial backing. Other implementation issues include ecosystem and standards immaturity, software limitations, culture, and technical skillset challenges.

To successfully deploy multi-access edge computing, you need an effective 5G MEC implementation strategy that’s true and tested. You should also consider partnering with an expert IT or edge computing company for professional guidance.

5G MEC Technology: Key Takeaways

Edge-driven transformation is a game-changer in the modern business world, and 5G multi-access edge computing technology is undoubtedly leading the cause. Enterprises that embrace this new technology in their business models benefit from streamlined operations, reduced costs, and enhanced customer experience.

Even then, MEC integration isn’t without its challenges. Companies looking to deploy multi-access edge computing technology should have a solid implementation strategy that aligns with their entire digital transformation agenda to avoid silos.

Article Source: 5G and Multi-Access Edge Computing

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What Is Data Center Virtualization?

Over the last decade, developments in cloud computing and an increased demand for flexible IT solutions have led to new technologies that literally transform the traditional data center. Many businesses have moved from physical on-site data centers to virtualized data center solutions as server virtualization has become a common practice.

What Is Data Center Virtualization and How Does it Work?

Data center virtualization is the transfer of physical data centers into digital data centers using a cloud software platform, so that companies can remotely access information and applications.

In a virtualized data center, a virtual server, also called a software-defined data center (SDDC) is created from traditional, physical servers. This process abstracts physical hardware by imitating its processors, operating system, and other resources with help from a hypervisor. A hypervisor (or virtual machine monitor, VMM, virtualizer) is a software that creates and manages a virtual machine. It treats resources such as CPU, memory, and storage as a pool that can be easily reallocated between existing virtual machines or to new ones.

data center virtualization

Benefits of Data Center Virtualization

Data center virtualization offers a range of strategic and technological benefits to businesses looking for increased profitability or greater scalability. Here we’ll discuss some of these benefits.

Benefits of Data Center Virtualization

Scalability

Compared to physical servers, which require extensive and sometimes expensive sourcing and time management, virtual data centers are relatively simpler, quicker, and more economical to set up. Any company that experiences high levels of growth might want to consider implementing a virtualized data center.

It’s also a good fit for companies experiencing seasonal increases in business activity. During peak times, virtualized memory, processing power, and storage can be added at a lesser cost and in a faster timeframe than purchasing and installing components on a physical machine. Likewise, when demand slows, virtual resources can be scaled down to remove unnecessary expenses. All of these are not possible with metal servers.

Data Mobility

Before virtualization, everything from common tasks and daily interactions to in-depth analytics and data storage happened at the server level, meaning they could only be accessed from one location. With a strong enough Internet connection, virtualized resources can be accessed when and where they are needed. For example, employees can access data, applications, and services from remote locations, greatly improving productivity outside the office.

Moreover, with help of cloud-based applications such as video conferencing, word processing, and other content creation tools, virtualized servers make versatile collaboration possible and create more sharing opportunities.

Cost Savings

Typically outsourced to third-party providers, physical servers are always associated with high management and maintenance. But they will not be a problem in a virtual data center. Unlike their physical counterparts, virtual servers are often offered as pay-as-you-go subscriptions, meaning companies only pay for what they use. By contrast, whether physical servers are used or not, companies still have to shoulder the costs for their management and maintenance. As a plus, the additional functionality that virtualized data centers offer can reduce other business expenses like travel costs.

Cloud vs. Virtualization: How Are They Related?

It’s easy to confuse virtualization with cloud. However, they are quite different but also closely related. To put it simply, virtualization is a technology used to create multiple simulated environments or dedicated resources from a physical hardware system, while cloud is an environment where scalable resources are abstracted and shared across a network.

Clouds are usually created to enable cloud computing, a set of principles and approaches to deliver compute, network, and storage infrastructure resources, platforms, and applications to users on-demand across any network. Cloud computing allows different departments (through private cloud) or companies (through a public cloud) to access a single pool of automatically provisioned resources, while virtualization can make one resource act like many.

In most cases, virtualization and cloud work together to provide different types of services. Virtualized data center platforms can be managed from a central physical location (private cloud) or a remote third-party location (public cloud), or any combination of both (hybrid cloud). On-site virtualized servers are deployed, managed, and protected by private or in-house teams. Alternatively, third-party virtualized servers are operated in remote data centers by a service provider who offers cloud solutions to many different companies.

If you already have a virtual infrastructure, to create a cloud, you can pool virtual resources together, orchestrate them using management and automation software, and create a self-service portal for users.

Article Source: What Is Data Center Virtualization?

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