Data Center

ACG’s Service Provider Data Center Infrastructure service monitors and analyzes companies and technologies; strategies for hardware, platforms and emerging technologies; and transformation strategies for data center operators.

Service Provider Data Center Infrastructure focuses on switching and routing technologies/products used by service providers at the access, aggregation, Internet services edge and metro optical interconnects of the provider network to provide Internet services.

Operators are dealing with multiple platform and network issues: growing requirements for new data center services, content service providers (B2C and B2B) extending into cloud-based data centers, voice and video services, shrinking revenue from wireline services, efficient delivery of data to smart phones driving new data service requirements, emerging competition from utility and cable providers— to name just a few. Simultaneously, they also must deal with the additional challenge of reducing costs, increasing average revenue per user, and reducing churn. To meet these challenges, operators are turning to vendors to develop faster, smarter, and more efficient networks.

Rapidly changing and dynamic operating environments are driving operators to take a hard look at how they do business and adapt their business models, operations, networks, and relationships to meet these changes. As data center networks migrate to flatter, layer 2 networks, new designs are being implemented to reduce costs and complexity. In addition, Layer 3 aggregation switches have IP/MPLS, BGP and 40/100G connections to support these flatter networks. The content service providers have adopted these new switching/routing architectures that are putting additional pressure on service providers to think through data-oriented services for enterprise and consumer customers. Decision makers require unbiased, competitive intelligence and sound analysis before they can make strategic business and infrastructure decisions about their data center networks.

In some cases service providers are now competing with content service providers that are generating enormous revenues and profit from their core businesses. In addition, utility and cable operators are providing new services to business and consumer clients, siphoning away critical revenue from the PTTs. “Best effort” Internet traffic requires incumbent carriers to rethink the way they are delivering content to their target customers.

Service providers are demanding data center equipment that will address MPLS, OSPF, BGP, ACL, QoS, content services, diagnostics, performance monitoring, and end-to-end service. Those innovative vendors that can develop equipment and products that meet these requirements as well as address consumers’ requirements for service quality, reliability, high-availability, and compatibility will lead the pack in capturing market and revenue share.

For more information, contact Paul Parker-Johnson at or