Colocation Data Centers Structured Cabling Trends

By Tom Debiec and Lisa Huff

As companies look to embrace cloud computing or backup their existing data centers, many are evaluating colocation as an option.  With this increased demand, colocation data centers are popping up all over the world and becoming a larger part of the overall data center market.  In 2013, the colocation sector is expected to account for about 25-percent of the structured-cabling data center market. During the work to develop the structured cabling forecast for the soon to be released Bishop & Associates report, "Structured Cabling Technology and Market Assessment," we had the chance to talk to project managers that are responsible for implementing 10,000 - 20,000 sqft build-outs in colocation facilities. It was clear to us that a few key trends have emerged:

• Whenever possible contractors recommend the use of pre-terminated copper and fiber cabling.  The benefits of utilizing these components include cost reduction, on-time delivery and the project is easier to manage.
• Although they are installing MPO cassettes on some jobs the cost premium often scares customers away.
• More OM3 fiber is being installed than OM4.  The up-sell to OM4 is difficult since OM3 covers the distances that are typically seen in these facilities (300m at 10G).
• A majority of the copper cabling is being installed is Category 6. 

A typical colocation lease averages about eight years.  Since the clients don't know what their requirements will be in this timeframe, they are less likely to make decisions that "future-proof" the installation for reuse with upgraded active equipment.  Tight budgets further preclude the addition of higher performing cabling products.  They would prefer to re-cable in the future than to pay for it now.  Since many of these installations are based on Top-of-Rack (ToR) architecture, re-cabling is viewed as a much simpler thing to do than to install new equipment when the cabinets are stuffed full of cabling. In view of this, we project that Category 6A and Category 7 cabling will only see very slow growth and that OM3 will be the mainstay over the next few years.

SFP+ Marks a Shift in Data Center Cabling

With the advent of top-or-rack (ToR) switching and SFP+ direct attach copper cables, more data centers are able to quickly implement cost-effective 10G and beyond connections. ToR designs are currently one of two configurations:

1. GigE Category cabling (CAT5e, 6, or 6A) connection to each server with a 10G SFP+ or XFP uplink to either an EoR switch or back to a switch in the main distribution area (MDA)
2. SFP direct attach cabling connection to each server with a 10G SFP+ or XFP uplink to either an EoR switch or back to a switch in the MDA

Either way, SFP and SFP+ modules and cable assemblies are starting to see huge inroads where Category cabling used to be the norm. Consequently, structured cabling companies have taken their shot at offering the copper variants of these devices. Panduit was one of the first that offered an SFP direct-attach cable for the data center, but Siemon quickly followed suit and surpassed Panduit by offering both the copper and optical versions of the assemblies as well as the parallel optics QSFP+ AOC. Others rumored of working on entering into this market are Belden and CommScope. This really marks a shift in philosophy for these companies who traditionally have stayed away from what they considered “interconnect” products. There are a couple of notable exceptions in Tyco Electronics and Molex that have both types of products, however.

So what makes these companies believe they can compete with the likes of Amphenol Interconnect, Molex and Tyco Electronics? Well, it might not be the fact that they think they can compete, but that they see some erosion of their patch cord businesses and view this as the only way to make sure the “interconnect” companies don’t get into certain customers. So, protecting their customer base by offering products they won’t necessarily make any money on – because, after all, many of them are actually private-labeled from the very companies they are trying to oust. Smart or risky? Smart, I think, because it seems to me that the future of the data center will be in short-reach copper and mid-range fiber in the form of laser-optimized multi-mode fiber (LOMF).