The events of 2020 and 2021 have forced global companies to evolve rapidly, executing year-long digital transformation initiatives in a matter of months. But while digital transformation is a top priority among these companies, new research suggests companies are ill prepared in terms of their data center strategies. A recent Forbes study found that only 11% of C-Suite executives think their data centers are ahead of the curve, ready for the higher data volumes future industry demands.

 

As transformative digital capabilities like 5G connectivity, IoT technology, hybrid workforce mobility, and more powerful edge computing become essential, technology leaders must get ahead of the curve and reimagine their data center capacities. Here we explore some of the latest trends in data center resources and sophistication, and define the 5 essential qualities IT leaders should consider when transforming their data center strategies.

 

Data Center Evolution: A Transition to the Cloud

 

The transition from centralized on-premise data center management to a cloud-based approach is already well underway. 5G will only accelerate this trend as it untethers high-speed connectivity from cable and wired ethernet. Edge computing will become even more critical; it will also make distributed or “collocated” data center models more accessible to enterprise and non-enterprise companies alike.

 

Companies are changing the ways they consume data center resources as a result, increasingly relying on data center services provided via the cloud. TechRepublic reports that about one-third of companies’ infrastructure decision makers use public cloud to run their high-performance computing (HPC) processes between 2019 and 2020, or plan to do so in the future, warranting this new approach.

 

Leading data center service companies are taking on new resources to accommodate this demand. Tech Wire Asia reports that data center spending by the world’s 20 largest cloud and internet service companies rose 16% year-over-year, reaching US$99 billion in September 2020. As we will find, new vendor offerings like colocation, hyperscale, and sustainable resources will lend themselves to a more sophisticated and future-focused data center marketplace as a result.

 

5 Critical Qualities of Future Data Centers

 

As leading companies pursue more sophisticated digital capabilities that drive competitive value and business growth, they are forced to reconsider their existing data center resources and look to more sophisticated models. But what are the right resources available in today’s market, and how can those resources contribute to their success? Here is a look at some of the critical qualities of today’s evolving data centers that no senior IT leader should overlook.

 

1. On-Premise Transformation

 

IT leaders can begin be identifying opportunities to revamp their existing, on-premise data center infrastructure. As Gartner describes, “Reinvesting in legacy technologies like data center infrastructure can often pay dividends in the form of increased capacity and reduced operating costs.”

 

But for companies whose core business is not data center infrastructure, on-premise solutions can go only so far in today’s modern business environment. Upon identifying opportunities for upgrades, cost savings, and improved IT capabilities and processes, IT leaders should look to alternative data center solutions to supplement internal IT close any remaining competitive gaps.

 

2. Colocation Adoption

 

Colocation simply means data center services offered up via the cloud, often by service providers with multiple data center locations. As digital capabilities become an increasingly important part of business operations, these companies have become more than just solution providers; industry leaders are positioning themselves as partners in business and digital transformation instead.

 

These partners’ offerings are becoming increasingly competitive as demand for colocation capabilities continue to rise. ResearchAndMarkets.com estimates that today’s $31.39 billion data center colocation market will nearly double by 2025. Companies can expect colocation providers to offer additional business benefits in the form of strategic guidance and IT optimization roadmaps as a result.

 

3. Hyperscale Growth

 

Colocation and other forms of cloud-based data center services make hyperscale possible—an asset to enterprise companies that command large shares of their markets but nonetheless want to remain flexible, nimble and cost effective in their data center investments. As Tech Wire Asia describes, “Hyperscale facilities offer a unique combination of energy efficiency and functionality that will likely make them the preferred choice of facility for most companies.”

 

Hyperscale is only achievable by large service providers and is often associated with leading technology companies such as Google, Amazon, Facebook, and others. There are at least 600 hyperscale data center facilities in operation today; that number will continue to grow as enterprise and non-enterprise companies consolidate around this optimized approach to data center infrastructure.

 

4. Talent Realignment

 

Companies already struggling with recruiting, retaining, and paying for top IT talent will continue to “outsource” their talent requirements to providers who increasingly act as business partners. “74% of leaders believe staffing will be reduced or handled by external cloud or edge service providers,” Forbes reports, where provider workforces may increasingly become practical extensions of their client companies’ internal IT teams.

 

This approach does liberate companies whose core business isn’t aligned with IT from investing heavily in IT training, recruitment, and certifications. Instead, these companies will focus on recruiting smaller pools of specialized talent who can work with providers and align their services with real business results in cost-effective ways.

 

5. Sustainability

 

For countless companies, data center resources are among their biggest consumers of energy. Data centers account for a substantial portion of global carbon emissions as a result. Fortunately, providers are in a good position to create more sustainable data center practices as part of their core lines of business. Underwater data centers; backup hydrogen fuel cells; and more efficient compute resources that drive greater computing power while using less energy are just some of the advantages available to providers to help them reduce their carbon footprints.

 

Energy usage trends suggest sustainability best practices are already taking effect. Data center workloads increased 650% between 2010 and 2019 without any increase in overall energy usage, according to Forrester. TechRepublic reports that colocation providers, “hyperscalers,” and other cloud vendors are the main drivers of green energy consumption in the data center market as well.

 

Conclusion

 

Data continues to grow at exponential rates. Its applications and usefulness continue to grow as well. But leveraging that data successfully to drive insights from analytics, improve customer experiences, drive operational efficiencies, and generate other forms of business value depends on data center capacities.

 

Partner with Uvation for the Best Data Center Model

 

Fortunately, data center capabilities and operational efficiencies are evolving with these new pressures. Uvation can help you identify the right data center resources and ensure your company is ready to meet these evolving demands. Contact one of our data center experts today for a free consultation.