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Figure 8.25 Network port growth rate (VMware analyst briefing, VMworld 2013).
According to Crehan Research, virtual server access ports are increasing at a compound
annual growth rate (CAGR) of 32%, versus physical server access ports of only 15%.
Also, virtual server access ports surpassed physical server access ports in 2012. This
isn't really surprising when you look at the explosive growth of virtualization and
virtual machines, and the required virtual and physical access ports that are required to
support them. Virtual machines surpassed physical servers for the first time in 2012
according to VMware as well.
Why is this important? There are two primary reasons. First, the network is the
computer, and more switching of network traffic is being done inside hypervisors now
than anywhere else, not all of which has to flow out to the physical network
(communication between VMs on the same port group remains within the host). Second,
this makes VMware (even before the acquisition of Nicira, and the availability of NSX)
the dominant global networking company, at least in terms of server access ports—not
Cisco, HP, Juniper, or anyone else. This means that in the new world of the software-
defined data center, the point of traffic aggregation and security is the hypervisor and the
virtual switch, not the physical network.
The existence of network virtualization and network security within the hypervisor and
virtual switch means the physical network architecture will become more simple, while
databases and applications can be provisioned on demand and be much more agile.
Instead of the physical network and other devices performing all the network- and
security-related services, they will become mostly just a fast access layer to move
traffic from place to place, whereas the hypervisor leverages distributed switching,
routing, and firewalling (from VMware and integration partners) to provide per-virtual-
machine and per-logical-group security policy. When you virtualize, your networking
and security performance will increase in line with Moore's Law via Intel releasing
 
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