AI is leading to a massive increase in data center workloads IDC forecast that data generation will increase at a compound annual growth rate (CAGR) of 40.5% through 2027. Gartner expected that the use of generative AI models will lead over 90% of companies to pursue hybrid cloud environments by 2027. This will place a significant burden on data center interconnect (DCI) networks that transport data between distributed, hybrid and cloud data center architectures. Traditionally, transporting data between geographically dispersed data centers required leasing high-performance lines from service providers or investing in dedicated optical transport networks. However, DCI connections over dark fiber with coherent pluggable optics offer an innovative alternative that reduces both the cost and complexity of connecting data centers to support AI applications.
The financial burden of traditional DCI solutions
Typically, service providers use their fiber networks to offer DCI services to businesses. These leased lines are often 10G connections or multiple 10G connections that support traditional DCI applications such as disaster recovery and business services. They are also used to support 100G connections for more demanding applications – such as data center mirroring and high-speed data aggregation and connections – to cloud services. As more data-intensive applications are introduced, DCI capacity is increasing toward high-bandwidth 400G and 800G connections. Because DCI’s cost structure is typically based on bandwidth usage, this shift places a new financial burden on organizations. Costs can quickly multiply as more lines are needed to meet increased capacity needs.
The advantage of rented dark fiber for DCI
Dark fiber leasing is a compelling option for organizations to mitigate the financial impact of DCI as capacity requirements increase. Dark fiber is fiber optic cables that have already been laid but have not yet been “illuminated” with data transmissions by a service provider. By leasing these fibers, companies can build their own private network, giving them control over their data traffic without the recurring costs associated with bandwidth usage with traditional carrier models.
The state of Maryland is a great example of using dark fiber for DCI. The state’s Department of Information Technology operates a 3,300-mile network and the move to dark fiber resulted in this Annual savings of over $111 million with an ROI of 871%. The benefits of leasing dark fiber and building a private network go beyond cost savings. Dark Fiber offers businesses scalability, which is critical in the age of AI. As their data needs grow, companies can scale their bandwidth without waiting for their service providers to add more capacity. Dark Fiber also improves organizations’ security posture by enabling complete control over the data that passes through the network, reducing exposure to external threats.
Integration of IP and optical networks for DCI
Traditional DCI architectures are based on a dedicated optical network layer, which requires investments in optical transponders and line systems to carry data traffic over the fiber. Enterprises can reduce the cost and complexity of DCI with Cisco Routed Optical Networking. It is a proven and standardized solution used in hyperscale DCI environments and service provider networks. More than 300 customers worldwide have adopted routed optical networking to increase capacity while reducing energy consumption and costs.
Routed Optical Networking enables the direct delivery of optical wavelengths from the high-capacity ports in routers or switches in the data center. It simplifies the network by replacing dedicated transponders with industry standards coherent pluggable opticsHigh-density routers and simpler optical line systems. This results in a more cost-effective network design. For point-to-point DCI solutions, enterprises can deploy coherent pluggable optics with Cisco Nexus switches to combine the switching and optical layers at Layer 2. For networks supporting more complex services, they can merge routing and optical layers onto a single IP/Multiprotocol Label Switching (IP/MPLS) network in which all switching occurs at Layer 3.
The Benefits of Routed Optical Networking for DCI
What does all this mean for a company’s balance sheet? Fewer components mean lower capital expenditures, a smaller hardware footprint, and lower power and cooling costs. According to analysis by ACG researchRouted Optical Networking can reduce the total cost of ownership for DCI applications by an incredible 48%, while reducing capital costs by 60% and total environmental costs (power, cooling and floor space) by up to 83%. But that’s not all. Routed Optical Networking also contributes to:
- Network simplification: The convergence of the IP and optical layers streamlines planning, design, activation, management, troubleshooting, and resolution of network services.
- Automation and security: A single end-to-end automation platform reduces errors, improves resiliency, simplifies repairs, and accelerates the rollout of new services.
- Network performance: Routed Optical Networking supports high-speed connectivity for demanding applications such as AI traffic or long-distance transmission.
- Reliable transmission: The robust data transmission in the coherent pluggable optics adapts to different network and fiber infrastructure conditions and ensures improved transmission reliability.
DCI for AI-ready data centers
Cisco has introduced a number of accelerated calculation, Network structureAnd Hyperscale fabric Solutions to address the data center demands of AI – from training sophisticated models to widespread use of inference. As the amount of data powering AI continues to increase, the need for cost-effective and scalable solutions to connect data centers has never been greater. By leasing dark fiber and adopting routed optical networking, companies can ensure their mission-critical networks are ready to support the unprecedented demands of AI today and tomorrow.
Cisco Routed Optical Networking for DCI applications.
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