SIGNALInfrastructure Software·Jun 9, 2026, 4:00 PMSignal50Medium term

Connecting the cloud, part II: The network

Source: DataCenter Dynamics

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Connecting the cloud, part II: The network

Outside the data center

Why this matters
Why now

The increasing distribution and complexity of cloud infrastructure necessitate a re-evaluation of network architectures to ensure efficient and reliable connectivity.

Why it’s important

Strategic readers should care as robust and adaptable network solutions are fundamental to scaling cloud services, managing distributed compute, and enabling next-generation AI and data applications.

What changes

The focus is shifting from purely internal data center networks to comprehensive strategies that seamlessly integrate disparate cloud environments and edge locations.

Winners
  • · Cloud networking solution providers
  • · Hyperscale cloud providers
  • · Enterprises with complex hybrid cloud needs
Losers
  • · Legacy network hardware vendors
  • · Enterprises unable to adapt network infrastructure
Second-order effects
Direct

Improved performance and reliability for multi-cloud and hybrid deployments across various industries.

Second

Accelerated adoption of distributed AI and data processing due to better network foundations.

Third

Enhanced resilience of digital infrastructure against localized outages or disruptions, contingent on diverse network paths.

Editorial confidence: 85 / 100 · Structural impact: 40 / 100
Original report

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