Although 2021 was a rebound year for many businesses, global issues such as the ongoing pandemic and the chip shortage had a resounding impact on the global economy. In this article, we will take a look at some of the industry relevant projections as well as upcoming trends, to give your business a head start for tailoring your 2022 IT strategy.
For many businesses, upgrading server memory was more expensive than usual in 2021. Memory prices were the highest they had been in two years, soaring 41% through the first eight months of the year.1 These rising memory prices were a byproduct of the global chip shortage, which is a trend that will likely continue in the first half of 2022 due to the high degree of complexity and investment capital involved in chip manufacturing.
Despite the ongoing chip shortage, there is light on the horizon for memory customers. Semiconductor manufacturers have greatly improved their manufacturing processes, utilizing newer process technologies and more advanced nodes to increase wafer input and overall yield respectively.2 New semiconductor plants will also kickstart production in mid-2022. These measures should greatly increase the global DRAM bit supply.2
With increased DRAM production, memory supply will eventually reach a slight surplus. As such, Gartner projects that there will be a sharp decrease in pricing for DRAM and NAND flash in the second half of 2022.3 With falling DRAM prices, businesses can save a great deal of money on memory, which is one of the higher costs in building a server (around 40 percent of the costs of a two-socket server).3 If there is a time to optimize servers or data centers, 2022 is an opportunity for businesses to do so considering the rare market conditions.
The metaverse was at the top of the list of buzzwords in 2021. The metaverse is a network of 3D virtual worlds in which users engage in with VR (virtual reality)/AR (augmented reality)-ready portable hardware and use computers/smartphones as access points. What separates the metaverse from other VR/AR activities, is the emphasis on the social aspect of the experience. Users can choose their own avatars and engage with other users in the metaverse for a more immersive social experience.
While the metaverse may sound like an intriguing concept for many, ultimately, it is reliant on the physical data center. The metaverse will require significant advancements to the data center in order to support the massive computing requirements needed to sustain web-based virtual environments.4 Much of these upgrades will involve edge computing, which was mentioned as a key growing trend in last year’s article. Because much of the metaverse will utilize mobile devices as access points, having a greater number of servers closer to these devices will optimize data bandwidth and improve the overall metaverse experience.
Data requirements continue to grow at a blistering pace due to the popularity of video streaming, social networking, multiplayer gaming, and more. While network transceivers play an indispensable role in data transmission within data centers and networks, higher data rate networks require higher data rates, bandwidth, reach and signal strength compared to that of conventional transceivers. This has given way to the rise of silicon photonics.5 Silicon photonics is a type of technology that integrates a photonics (light-based) system within integrated circuits and uses silicon as an optical medium. In other words, it introduces integrated circuits that can manipulate light for data processing instead of relying mostly on standard electronics.
The advantage of using an optical based system is that it significantly speeds up data transfer between and within integrated circuits. This greatly improves performance, bolsters and extends network transmission, while curbing power consumption.6 In addition, most integrated circuits already use silicon as a substrate, which means that the silicon ecosystem can support this new technology for mass production and greater scalability. Newer 400G transceivers have already started implementing this new up-and-coming technology.
In today’s world, data and business operations are fully intertwined. Many businesses nowadays utilize a hybrid cloud or hybrid multi-cloud configuration, which means their data is proliferated across multiple platforms. The data fabric is a management architecture that essentially serves as a central hub to house data from all of those platforms. As its name suggests, data fabric “weaves” all types of data together, consolidating data into a unified system for businesses. The data fabric ensures that data can be accessed in real time, regardless of whether the data is stored in on-premises servers or independent cloud deployments. With real time access, integration and sharing of data, businesses are able to ensure its entire work force are on the same page when it comes to data management.
While 2021 saw a major return to office work after a year of full-time WFH practices, many businesses have opted towards implementing hybrid work models moving forward. Hybrid work models ensure that employees are able to work together efficiently on-site as well as having the means to work remotely without losing any productivity. It also requires greater synchronization in the hybrid cloud, with Cloud services handling less sensitive data and on-prem data centers handling the bulk of the work with shared network, storage, data needs and tasks. When optimized, the hybrid work model strikes the best balance between productivity and flexibility for employees.
With these rising trends, now is a great time to go ahead and acquire the right upgrades needed to level the playing field in today’s IT landscape. Axiom is a leading provider of third-party upgrades in server and data center hardware. With a cost-effective approach for our customers, businesses are able to retool data centers to address key IT needs. To learn more about how Axiom third-party upgrades can optimize your servers and data centers, contact an Axiom sales representative or visit our website for more details at https://www.axiomupgrades.com/