Hyperscale Environments Are Driving Demand and Adoption For Higher Speed, Lower Latency Interconnects to Alleviate Bottlenecks in Bandwidth-intensive ApplicationsPOWERING THE CLOUD, FRANKFURT, and COSTA MESA, Calif, October 28, 2014 – Emulex Corporation (NYSE:ELX), a leader in network connectivity, monitoring and management, announced the results of a study of 1,623 U.S. and European IT professionals, in which respondents provided insight into their enterprise data center networking environments. The study, conducted in October 2014, found that 57 percent (%) of respondents have adopted hyperscale networking environments that require massive scalability in network resources. (tweet this) Of those respondents, more than half (51%) named increasing bandwidth as a major challenge in moving to hyperscale environments. As applications become more network-centric, and the volume of data grows in the cloud, organisations are seeing increased bandwidth demand for front-end applications driven by mobility and Bring Your Own Device (BYOD), mid-tier big data analytics and content distribution, back-end transaction processing and storage management. The survey results below indicate that hyperscale and multi-tenant requirements are driving demand for higher network bandwidth to manage vast volumes of data, lower latency to accelerate application delivery and performance, and increased security to meet service level agreements (SLAs), and regulatory and compliance requirements. Organisations have responded by increasing their network bandwidth, and more than 77% of respondents running hyperscale environments say the move to the cloud has already necessitated the upgrade of their networks to at least 40Gb Ethernet (40GbE). (tweet this) Other key findings from the survey include:Hyperscale and the cloud37% of respondents are taking a hybrid approach, using both private and public cloud.31% are investing in private cloud, but are cautious about moving data to the public cloud.30% are taking a “wait and see” approach to storing data in the cloud.The top workloads most frequently migrated to the cloudThe top workloads respondents reported they have moved, or plan to move to the cloud, include customer business applications (29%), application testing/development (23%), big data/analytics (19%), Office 365 (19%), email collaboration (19%), customer relationship management (CRM) (18%), disaster recovery (13%), ecommerce (9%), ERP systems (5%) and SAP Hana (2%). (tweet this)Hyperscale organisations are investing in open networking approaches 55% of respondents from hyperscale organisations have already deployed an Open Compute-based infrastructure, and 43% plan to in the next 24 months. In contrast, only 17% of respondents from non-hyperscale organisations have deployed an Open Compute-based infrastructure, and only 17% plan to in the next 24 months. (tweet this)31% of respondents have already deployed an NFV-based infrastructure, and 68% plan to in the next 24 months. In contrast, only 16% of respondents from non-hyperscale organisations have deployed a network functions virtualisation (NFV)-based infrastructure, and only 16% plan to in the next 24 months.15% of respondents have already deployed OpenStack, and 82% plan to deploy OpenStack in the next 24 months. In comparison, only 11% of respondents from non-hyperscale organisations have deployed OpenStack, and only 20% plan to in the next 24 months.11% of respondents have already deployed software-defined networking (SDN), and 86% plan to implement SDN in the next 24 months. Comparatively, only 17% of respondents from non-hyperscale organisations have deployed SDN, and only 29% plan to in the next 24 months.State of data center networking technologies and protocolsAll survey respondents reported they are using a mix of network technologies in their private data centers. 23% have deployed 10GbE, 7% have deployed 40GbE, and 3.5% have deployed 100GbE.In the next 12-24 months, 68% of all survey respondents plan to deploy 10GbE, 63% plan to deploy 25GbE, 69% plan to deploy 40GbE and 70% plan to deploy 100GbE. (tweet this)All survey respondents reported they are using a mix of networking protocols in their private data centers. 23% have deployed Fibre Channel over Ethernet (FCoE), 18% have deployed iSCSI and 2% have deployed RDMA over converged Ethernet (RoCE). In the next 12-24 months, 54% of respondents plan to deploy FCoE, 65% expect to be using iSCSI and 68% expect to be using RoCE. Bandwidth remains a major challengeBandwidth remains a major challenge for hyperscale companies, versus non-hyperscale companies that are focused on security. For hyperscale companies, respondents reported increased bandwidth requirements (51%), latency (36%), and security concerns (20%) as the top three challenges in migrating these workloads to the cloud. (tweet this)For non-hyperscale companies, respondents reported security (70%), latency (44%), and increased bandwidth requirements (39%) as the top three challenges in migrating workloads to the cloud.Hyperscale organisations are upgrading networking technologies at a much higher rate97% of respondents reported that adoption of hyperscale has necessitated a move to 10GbE, 40GbE or higher speeds to meet demands of high-performance applications such as big data, analytics and content distribution, compared to only 48% of respondents from non-hyperscale organisations. (tweet this)Hyperscale companies need network speed38% of respondents from hyperscale companies said they have 40Gb per second (Gbps) or faster network connections to their primary data center, compared to only 22% of respondents from non-hyperscale companies.93% of survey respondents at hyperscale companies expect to be at 40Gbps or faster in three years, but only 44% of non-hyperscale organisations expect to be at 40Gbps or faster in the same timeframe. (tweet this)Executive Commentary”The move to hyperscale is entering a second phase from the cloud providers to managed service providers (MSPs) and enterprises. This survey highlights that like every major transition in IT infrastructure, changes are required and IT professionals have to re-think almost everything they have done in the past,” said Shaun Walsh, senior vice president of marketing, Emulex. “Beyond the concept of hyperscale models, we see very specific technologies being implemented such as OpenStack, SDN and NFV. Each of these changes has performance, operational expenditure (OPEX) and team skill implications for application, networking and storage infrastructure. We are working with leading end users, ecosystem partners and OEMs to bring the right connectivity, monitoring and management tools to make these solutions viable and operational.”Register here to download the infographic: http://connect.emulex.com/LP=873Tweet This: #Emulex Study Reveals #Bandwidth and #Network Speeds Exploding with #Hyperscale Deployments: http://ow.ly/DirZY #PTCFrankfurtTwitter Chat: Emulex will hold a Twitter chat with Shaun Walsh to discuss these results on Wednesday, October 29th, at 10:30 a.m. ET. Follow #hyperscalesurvey and join us here: http://www.tchat.io/rooms/hyperscalesurveyFollow Emulex on Twitter. About Emulex Emulex, a leader in network connectivity, monitoring and management, provides hardware and software solutions for global networks that support enterprise, cloud, government and telecommunications. Emulex’s products enable unrivaled end-to-end application visibility, optimization and acceleration. The Company’s I/O connectivity offerings, including its line of ultra high-performance Ethernet and Fibre Channel-based connectivity products, have been designed into server and storage solutions from leading OEMs, including Cisco, Dell, EMC, Fujitsu, Hitachi, HP, Huawei, IBM, NetApp and Oracle, and can be found in the data centers of nearly all of the Fortune 1000. Emulex’s monitoring and management solutions, including its portfolio of network visibility and recording products, provide organizations with complete network performance management at speeds up to 100Gb Ethernet. Emulex is headquartered in Costa Mesa, Calif., and has offices and research facilities in North America, Asia and Europe. For more information about Emulex (NYSE:ELX) please visit http://www.Emulex.com.”Safe Harbor” Statement”Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above, contain forward-looking statements that involve risk and uncertainties. We expressly disclaim any obligation or undertaking to release publicly any updates or changes to these forward-looking statements that may be made to reflect any future events or circumstances. We wish to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include the possibility that our previously announced cost savings initiatives will not be realized on a timely basis. The assumptions on which the cost savings and related and capital return goals and expectations are based involve judgments with respect to, among other things, economic, competitive and financial market conditions and the impact of the cost savings initiative on our customers, all of which are difficult or impossible to predict and many of which are beyond the Company’s control. These factors also include the possibility that we may not realize the anticipated benefits from the acquisition of Endace Limited on a timely basis or at all, and may be unable to integrate the technology, operations and personnel of Endace into our existing operations in a timely and efficient manner. In addition, intellectual property claims, with or without merit, could result in costly litigation, cause product shipment delays, require us to indemnify customers, or require us to enter into royalty or licensing agreements, which may or may not be available. Furthermore, we have in the past obtained, and may be required in the future to obtain, licenses of technology owned by other parties. We cannot be certain that the necessary licenses will be available or that they will be obtainable on commercially reasonable terms. If we were to fail to obtain such royalty or licensing agreements in a timely manner and on reasonable terms, our business, results of operations and financial condition could be materially adversely affected. Lawsuits present inherent risks, any of which could have a material adverse effect on our business, financial condition, or results of operations. Such potential risks include continuing expenses of litigation, loss of patent rights, monetary damages, injunctions against the sale of products incorporating the technology in question, counterclaims, attorneys’ fees, incremental costs associated with product or component redesigns, liabilities to customers under reimbursement agreements or contractual indemnification provisions, and diversion of management’s attention from other business matters. In addition, the fact that the economy generally, and the network connectivity and visibility market segments specifically, have been in a state of uncertainty makes it difficult to determine if past experience is a good guide to the future and makes it impossible to determine if markets will grow or shrink in the short term. Continued weakness in domestic and worldwide macro-economic conditions, currency exchange rate fluctuations, potential disruptions in world credit and equity markets, and the resulting economic uncertainty for our customers, as well as the overall network connectivity and visibility markets, has and could continue to adversely affect our revenues and results of operations. As a result of these uncertainties, we are unable to predict our future results with any accuracy. Other factors affecting these forward-looking statements include but are not limited to the following: faster than anticipated declines in the storage networking market, slower than expected growth of the converged networking market or the failure of our Original Equipment Manufacturer (OEM) customers to successfully incorporate our products into their systems; our dependence on a limited number of customers and the effects of the loss of, decrease in or delays of orders by any such customers, or the failure of such customers to make timely payments; the emergence of new or stronger competitors as a result of consolidation movements in the market; the timing and market acceptance of our products or our OEM customers’ new or enhanced products; costs associated with entry into new areas of the network connectivity and visibility markets; the variability in the level of our backlog and the variable and seasonal procurement patterns of our customers; any inadequacy of our intellectual property protection and the costs of actual or potential third-party claims of infringement and any related indemnity obligations or adverse judgments; the effect of any actual or potential unsolicited offers to acquire us; proxy contests or the activities of activist investors; impairment charges, including but not limited to goodwill and intangible assets; changes in tax rates or legislation; the effects of acquisitions; the effects of terrorist activities, natural disasters, and any resulting disruption in our supply chain or customer purchasing patterns or any other resulting economic or political instability; the highly competitive nature of the markets for our products as well as pricing pressures that may result from such competitive conditions; the effect of rapid migration of customers towards newer, lower cost product platforms; transitions from board or box level to application specific integrated circuit (ASIC) solutions for selected applications; a shift in unit product mix from higher-end to lower-end or mezzanine card products; a faster than anticipated decrease in the average unit selling prices or an increase in the manufactured cost of our products; delays in product development; our reliance on third-party suppliers and subcontractors for components and assembly; our ability to attract and retain key technical personnel; our ability to benefit from our research and development activities as well as government grants related thereto; our dependence on international sales and internationally produced products; changes in accounting standards; and any resulting regulatory changes on our business. These and other factors could cause actual results to differ materially from those in the forward-looking statements and are discussed in our filings with the Securities and Exchange Commission, including our recent filings on Forms 10-K and 10-Q, under the caption “Risk Factors.”All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.###Press Contacts:Katherine LaneSenior Director, Corporate and Marketing Communications+ 1 714-885-3828katherine.lane@emulex.comJolene PeixotoSenior Manager, Public Relations and Social Media+1 714-885-3858jolene.peixoto@emulex.com Source: RealWire

Leave a Reply