October 21st, 2013
The dialog over open networking often goes something like this: The networking market is fundamentally changing. The established networking vendors will realize lost market share and revenue if they don’t open up. Network switching will become commoditized and offshored to Asia. While these may be true statements, one unknown inter-related trend is evolving, and that’s open networking will disrupt the storage market. The Storage Area Networking, or SAN market, and in particular Fiber Channel, is costly and difficult to configure. Ethernet networking has evolved to the point where early adapters, cloud providers and hyperscale firms are starting to consider transporting storage traffic over the same Ethernet network as user traffic. While 10GbE and 40GbE switching possess the attributes to support storage, open networking’s automation and programmability are the final pieces to the architectural puzzle to enable fully converged data and storage networking. Over the past year, VCs have poured 10s of millions into new IP storage firms to take advantage of this shift in the storage market, including Ceph by Inktank, GlusterFS, Sheepdog, SwiftStack, Scality, Hedvig, Riak CS and others. In this Lippis Report Research Note, we explain the new open networking and storage market that’s emerging.