DCN December 2016 - Page 7

industry news Insight Enterprises to acquire Datalink Insight Enterprises and Datalink have entered into a definitive merger agreement under which Insight will acquire Datalink for $11.25 per share in cash, representing a 19 per cent premium to Datalink’s closing share price on 4th November 2016.  The transaction implies an equity purchase price of approximately $258m and an enterprise value of approximately $196 million (net of cash and debt acquired). Insight expects to achieve approximately $20m in run-rate cost savings within two years after closing, primarily related to corporate efficiencies, duplicative functions and IT system integration. The transaction is expected to be accretive to 2017 adjusted earnings per share (excluding transaction and integration expenses). Ken Lamneck, CEO of Insight, said, ‘The data centre is at the core of our clients’ strategic investments. With the increasing number of options from converged to hyperconverged solutions as well as hybrid cloud options, the landscape has become more complex and clients are looking for help as they evaluate alternatives. The acquisition of Datalink is a significant step in strengthening the foundation of our data centre practice as we add the expertise and depth of the Datalink team to our portfolio. We are excited about the combination and look forward to welcoming the Datalink team to our organisation.’ CISCO GLOBAL CLOUD INDEX PROJECTS CLOUD TRAFFIC TO NEARLY QUADRUPLE REPRESENTING 92 PER CENT OF TOTAL DATA CENTRE TRAFFIC BY 2020 In the unveiling of the sixth annual Cisco Global Cloud Index (2015-2020), cloud traffic is expected to rise 3.7-fold, up from 3.9 zettabytes (ZB) per year in 2015 to 14.1 ZB per year by 2020. This rapid growth of cloud traffic is attributed to increased migration to cloud architectures due to their ability to scale quickly and efficiently support more workloads than traditional data centers. With greater data centre virtualisation, cloud operators are also able to achieve greater operational efficiencies while flexibly delivering a growing variety of services to businesses and consumers with optimal performance. To better understand data centre growth, new analysis on application workloads was developed for this year’s report. For the first time, Cisco quantified and analysed the impact of hyperscale data centres. These data centres will grow from 259 in 2015 to 485 by 2020. Hyperscale1 data centre traffic is projected to quintuple over the next five years. These infrastructures will account for 47 per cent of total data centre installed servers and support 53 per cent of all data centre traffic by 2020. A key infrastructure trend is transforming hyperscale (and other) data centres. Software defined networking (SDN) and network functions virtualisation (NFV) are helping to flatten data centre architectures and streamline traffic flows. Over the next five years, nearly 60 per cent of global hyperscale data centres are expected to deploy SDN/NFV solutions. By 2020, 44 per cent of traffic within data centres will be supported by SDN/NFV platforms (up from 23 per cent in 2015) as operators strive for greater efficiencies. Verizon’s Harvard Business Review study outlines CIO struggles with digital disruption Enterprises today are employing ‘hybrid IT’ as they struggle to keep up with digital transformation, according to the latest Harvard Business Review Analytic Services report ‘Hybrid IT Takes Center Stage’. Sponsored by Verizon Enterprise Solutions, the report survey of 310 business and IT executives worldwide found that most say their organisations are struggling to keep up with the pace of change in business today while working to ensure the complexity of their IT systems do not jeopardize performance, agility or security.  In fact, 63 per cent of respondents indicated they are pursuing a hybrid IT approach to keep up with their existing infrastructure that consists of a mix of private clouds, public clouds and legacy data centres – either on-premises or managed by service providers.   To enable hybrid IT, the report singles out the need for a secure, high performance network architecture that can deliver the kind of security, flexibility and responsiveness required to stitch all these systems together. ‘The vast majority of CIOs and line of business owners are working within the constraints of legacy apps, networks and investments,’ said Chris Yousey, vice president of managed services for Verizon Enterprise Solutions. ‘And while the move to hybrid IT is about protecting their investments, it’s really more about improving performance, availability and above all, agility in today’s business climate.’ 7