Why Location Matters When Choosing a Data Center Network for Enterprise Growth ?
Understand why physical location is a critical factor when choosing a data center network to support long-term enterprise growth and reduce latency.
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Why Location Matters When Choosing a Data Center Network for Enterprise Growth ?
Understand why physical location is a critical factor when choosing a data center network to support long-term enterprise growth and reduce latency.
Is Your Data Center Network Ready for Modern Workloads? Why Businesses Are Rethinking Network Infrastructure ?
Your data center network probably is not ready if it was designed more than three years ago and you are running AI workloads, heavy cloud integration, or high performance applications.
Most networks were built for traditional business applications that behaved predictably and moved moderate amounts of data.
Modern workloads generate completely different traffic patterns that old network designs simply cannot handle efficiently.
The result shows up as slow application performance, underutilized expensive servers, and business projects that take longer than they should.
How to Know If Your Network Is the Problem
The easiest way to spot network bottlenecks is watching your expensive equipment sit idle.
Key Warning Signs
GPU servers drop to 50–60% utilization during AI training
Large dataset transfers take hours instead of minutes
Applications slow down unpredictably during peak usage
Cloud apps feel sluggish despite strong internet bandwidth
These issues usually point to network limitations rather than compute or storage problems.
What Changed and Why Old Networks Struggle
Networks designed even five years ago were built for north-south traffic data moving between users and servers.
Modern Reality
Today’s workloads generate east-west traffic, where data flows between servers inside the data center.
Examples include:
AI training workloads
distributed databases
microservices architectures
In modern environments:
70% to 80% of traffic stays internal
older networks lack internal bandwidth
bottlenecks appear in unexpected places
The AI Workload Challenge
Artificial intelligence workloads push networks to their limits.
Why AI Stresses Networks
datasets are often terabytes in size
continuous synchronization between GPU nodes
latency compounds across thousands of iterations
Real Impact
jobs that should finish in hours take much longer
GPUs remain idle waiting for data
infrastructure investment is underutilized
Cloud Integration Creates New Problems
Hybrid environments introduce additional complexity.
Common Issues
inconsistent performance over public internet
increased data transfer (egress) costs
higher latency between environments
Applications split between on-premise and cloud systems depend heavily on network efficiency.
What Modern Networks Actually Need
Modern workloads require a fundamentally different approach to networking.
Key Requirements
High bandwidth everywhereNot just core layers, but across all connections
Spine-leaf architectureReduces hops and improves latency
Balanced traffic designEqual focus on east-west and north-south traffic
Direct cloud interconnectsBetter performance, security, and cost efficiency
Advanced congestion managementPrevents packet loss and retransmissions
The Business Impact You Cannot Ignore
Network bottlenecks directly affect business outcomes.
Key Consequences
Wasted infrastructure investmentServers and GPUs operate below capacity
Delayed innovationAI and product development slow down
Inconsistent application performanceImpacts user experience and productivity
Limited scalabilityGrowth is restricted by infrastructure limits
Practical Steps to Assess Your Situation
What You Should Evaluate
bandwidth utilization across all network links
saturated vs underutilized connections
traffic patterns (east-west vs north-south)
latency between key systems
cloud connectivity performance
Understanding your current state is the first step toward improvement.
When Upgrades Work Versus When You Need Redesign
Upgrades Are Enough If:
only specific links are saturated
overall architecture is still efficient
Redesign Is Required If:
network uses outdated three-tier architecture
performance degrades as workloads scale
east-west traffic overwhelms the system
Incremental fixes cannot solve structural limitations.
What This Means for Planning
Network infrastructure should be part of strategic planning not an afterthought.
Planning Considerations
include network needs in AI and cloud projects
allocate realistic budgets for modernization
consider phased upgrades to reduce disruption
Ignoring network limitations leads to higher long-term costs.
Conclusion
A data center network designed for traditional applications creates bottlenecks that waste infrastructure investment and slow business performance in modern environments.
AI workloads, cloud integration, and distributed systems require networks built for high internal traffic, low latency, and scalable performance.
Addressing these challenges ensures your infrastructure supports growth instead of limiting it.
FAQs
Q.1 How can I tell if network problems are causing slow applications?
Ans. Monitor resource utilization.
If compute and storage have headroom while network links are saturated, the network is the bottleneck.
Performance improving during off-peak hours is another strong indicator.
Q.2 What bandwidth do modern workloads actually need?
Ans.
AI workloads: 100–400 Gbps
general workloads: 25–100 Gbps
Exact needs depend on workload type, but they far exceed older standards.
Q.3 Can software changes fix network bottlenecks?
Ans. Software can optimize traffic, but it cannot replace missing bandwidth.
A combination of hardware upgrades and software optimization delivers the best results.
Q.4 How disruptive is upgrading a data center network?
Ans.
phased upgrades → less disruption, slower results
full redesign → more disruption, faster resolution
Planning minimizes impact in both cases.
Q.5 Is a data center network upgrade worth the cost?
Ans.
Yes when you factor in:
wasted compute capacity
delayed projects
reduced competitiveness
The cost of not upgrading often exceeds the investment required.
Share your memories, connect with others, make new friends
In this blog post, we’ll explore some of the key benefits offered by a modern VoIP system associated with data centers and why it’s important to make sure yours delivers reliable performance. Read More....
Huawei brings Global Experts to face Challenges of Data Center Network
Huawei brings Global Experts to face Challenges of Data Center Network
The Huawei Data Center Network Online Summit 2020, was held to attract experts from around the world to discuss the value of next-generation data centers for the intelligent era, in which data is a key production factor. Held online and organized by Huawei, the Summit brought together global and regional experts to address the challenges faced by data centers in tomorrow’s hyper-connected…
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Are VXLANs Really the Future of Data Center Networks?
Fun Fact: At a recent networking conference we attended, a poll was taken and it was discovered that more people in the room knew what country Oslo was the capital of, than those that knew how VxLAN works.
Why VXLAN was Created
In all traditional data centers, VLANs (virtual local area networks) are used to enforce Layer 2 isolation. Over the past few decades, as data centers grew increasingly in size and technology, the need for extending Layer 2 networks across racks within a data center, and even across data centers of different geographical locations, grew. As a result, the limitations of VLANs made this task difficult to accomplish.
In data centers and multi-tenancy environments, thousands of VLANs are needed. The limitation of 4094 VLANs that currently exist is not sufficient.
Using STP (spanning-tree protocol) to provide loop-free networks in return disables most redundant links limiting bandwidth growth.
VLANs are also restrictive in terms of distance and deployment. Routers do not extend Layer 2 broadcast, which leaves the engineer the traditional option of trunking the desired VLAN(s) through multiple switches and increasing the risk of potential network disaster.
VXLAN (Virtual Extensible LAN) addresses all the above limitations that engineers are faced with when using regular VLANs.
VXLAN Overview
VXLAN is a Layer 2 overlay deployment over an existing Layer 3 network. It uses MAC Address-in-User Datagram Protocol (MAC-in-UDP) encapsulation to provide a means to extend Layer 2 segments across the data center network. VXLAN is designed to not only provide the same services and core functions that VLANs do today, but also provide a solution to extend the Layer 2 network over an existing Layer 3 network. This is called an “overlay”. An overlay network is a virtual network that is built on top of an existing Layer 2/Layer 3 network. VXLAN makes it easier for network engineers to scale a data center or cloud computing environment, while still being able to isolate tenant services.
In a multi-tenant environment, each tenant requires its own logical network, which in turn, requires its own Network Identification (NID). Traditionally, network engineers have used VLANs to accomplish the task of separating applications and tenants but with the scale limitation of a regular VLAN, only 4096 unique NIDs could be deployed at a given time. However, VXLAN extends the VLAN address space by adding a 24-bit segment and increasing the number of available NIDs (called VNIs) from 4094 to 16 million. This allows for millions of isolated Layer 2 VXLAN networks to co-exist on a common Layer 3 infrastructure.
VXLAN Benefits
Flexible placement of multi-tenant segments throughout the data center. It provides a solution to extend Layer 2 segments over the underlying shared network infrastructure so that tenant workload can be placed across physical segments in the data center.
Higher scalability to address more Layer 2 segments. VLANs use a 12-bit VLAN ID to address Layer 2 segments, which results in limiting scalability of only 4094 VLANs. VXLAN uses a 24-bit segment ID which enables up to 16 million VXLAN segments to coexist in the same common network infrastructure.
Better utilization of available network paths in the underlying infrastructure. VLAN uses the Spanning-Tree Protocol for loop prevention, which ends up disabling half of the network links in a network by blocking redundant paths. In contrast, VXLAN packets are transferred through the underlying network based on its Layer 3 header and can take complete advantage of Layer 3 routing, equal-cost multipath (ECMP) routing, and link aggregation protocols to use all available paths.
VXLAN is a network overlay technology design for data center networks. It simply and easily provides massively increased scalability over regular VLAN IDs alone, while allowing for L2 adjacency over L3 networks. Learn more about our networking services and reach out to a Rahi Systems' expert to design your network architecture.
India Data Center Market Analysis Report 2022
India Data Center Market size is projected to reach USD 1.5 billion by 2022 from USD 1.0 billion in 2018, growing at a Compound Annual Growth Rate (CAGR) of 11.4% during the forecast period (2018–2022). Major growth factors for the market are deeper internet penetration, increase in digital data traffic, public cloud services, and higher expected growth for IoT.
An Abbreviation of Cisco Data Center Networking Infrastructure Mythos
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