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Top Data Storage Trends in 2017, Part III: Fibre Channel Declines & Mergers Take Hold

April 5, 2017

While cloud and flash storage are set to dominate the market, the means of information transfer for data storage will evolve throughout 2017. The power of Ethernet connectivity is changing how companies operate, and increasing convergence of existing data storage companies will a drive a power play among competitors. However, the impact the supply chain will be minimal compared to other trends, and you need to know why.

Data Storage Trends: Fibre Channel Will Fade, Replaced by Ethernet

Fibre Channel is a technology that enables data transfer between devices at a speed of four gigabytes per second (GBPS). Although this transfer is phenomenally faster than its predecessors, such as basic phone lines, it is starting to be replaced by Ethernet due to its problems in configuration, reports CRN.com. In other words, various manufacturers might design Fibre Channel ports differently, creating issues with compatibility. Yet, standards for Fibre Channel are laid out, reports Tech Target, by the Fibre Channel Physical and Signaling Standards, including ISO best practices for recycling old products and data lines.Top Trends in Data Storage

Essentially, Ethernet cables make up most local area networks (LANs), so upgrading lines to enable 10-GBPS transmission may be easier and less costly than Fibre Channel lines. Furthermore, Ethernet enables universal data transmission through packets and frames of data, so corruption and delays are less likely to occur.

Proactive supply chain managers will respond to these changes with a positive attitude, because they will be able to leverage more reliable, faster internet speeds for data transmission. Thus, production value and capacity in manufacturing will increase.

Data Storage Trends: Converged Infrastructure Will Lead to More Mergers and Acquisitions

The replacement of Fibre Channel with Ethernet alludes to another issue driving data storage trends in 2017. Existing technology and infrastructure are converging to create a more connected, accessible form of data transmission and storage. Consequently, this will lead to more mergers and acquisitions between like-minded companies as the year progresses. As a result, initial service prices may fall, an expected response given the overall decrease in sales of storage devices.  But, a future resurgence in prices might occur as companies gain monopolies across sectors of the industry.

Data Storage Trends: The Big Picture

Supply chains can prepare for the coming changes with data transmission and storage mergers by optimizing their existing operations. They must reduce the burden of data on their networks by relocating information storage to the cloud and upgrading data networks in their facilities. Ultimately, 2017 will give companies a chance to act to protect against future spikes in data storage and transmission pricing or capacity limitations.

Are your storage capabilities and strategies strong enough for you to compete in the global marketplace? Contact Flash Global today to get started planning how your company will adapt its supply chain to changing data transmission capability and storage service offerings.

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