Cloud 'tsunami' to impact global businesses: report

Khoo Boo Leong
12 Mar 2014

Data centers and networks transformed to take advantage of the benefits of virtualization and cloud computing have become the new normal.

Servers and storage are being virtualized. On the leading edge, network function virtualization is well under way as software-based firewalls, load balancers and switches run on any cloud-enabled hardware.

Virtualization will enable rapid deployment of cloud services across the enterprise network, resulting in the network and data center becoming more intrinsically linked.

All these translate to a surge in data center traffic. In its recent Global Cloud Index, Cisco forecasts that global cloud traffic, the fastest growing component of data center traffic, is expected to grow at a 35% combined annual growth rate (CAGR) – from 1.2ZB of annual traffic in 2012 to 5.3ZB by 2017. That will be a whopping 69% of annual data center traffic.

Asia Pacific will experience an even faster cloud traffic growth rate of 43% CAGR. By 2017, the region will generate 1.876ZB of cloud traffic annually and process 36.5 million or 31% of global cloud workloads.

To deliver reliable service and fulfill business objectives, CIOs must quickly recognize and address the impact of increased volumes of traffic and network speeds on critical network and application performance.

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