Debunking the myth that data centers are becoming obsolete

January 13, 2014 Off By David
CloudCow Contributed Article.  Author: Kevin Dalton, Vice President of Design at Digital Realty.

Right or wrong?

Technology companies and service providers are building ALL of their own data centers nowadays. On mystery barges. In outer space.

Plus the surge in reliance on the cloud for moving and storing data is rendering these once mission critical facilities irrelevant anyhow. Bye-bye, data centers. So long. We hardly knew ya.

Wrong.

Instead, companies are turning data centers into their data advantage

As every aspect of our everyday lives and economy become increasingly digitized, there’s no question that the amount of data being produced will continue to surge at an astonishing pace.  

This data is also becoming more dynamic-companies are exchanging data with more partners and customers, and analyzing data across more parts of the business, while the need for speed is rising.

The rise of cloud computing and emerging technologies, such as virtualization and flash storage, are making it more difficult for organizations to keep up with data growth, and they can’t do it alone.

In this age of rapidly growing data, constantly evolving technologies, intensifying competition, uncertainty and globalization, even the largest, most sophisticated companies cannot go it all alone. They need a data center strategy that enables them to effectively share data, handle the growth of data and put data close to where it’s needed.

The cloud lives in data centers

From a B2B perspective, big data collection, data mining and predictive analytics are becoming necessary practices for any enterprise trying to get ahead in today’s super competitive landscape. Where does all of this data collection and analysis take place? Bingo. Modern data centers.

And consider the perspective of the consumer: among the most popular items gifted this past (and any recent) holiday season were technology gadgets, such as smartphones and tablets.

We send emails from our mobile devices while waiting for the commuter bus or train on our way to and from work, we download movies on date night from our laptop computers and we update our Facebook status on the fly. Online banking, making reservations at our favorite restaurants, paying property taxes.

Pretty much everything we do in our day-to-day lives involves moving reams of data through the cloud.

And the cloud lives in data centers.

To lease or build-that is the question

So the REAL question in 2014 among tech companies and service providers isn’t, "Do we still need data centers?", but rather, "How do we optimize our data center strategy to meet the unique needs of our business and where do we turn for help?"

According to 451 Research, "Enterprises of all sizes are outsourcing. Over the years, there have been shifts in what is outsourced and where, but there has been steady demand, and we believe this demand is accelerating."

In fact, in a January 2013 study of North American data center trends, 98 percent of the respondents indicated they would definitely or probably expand data center space in the next two years (the research was commissioned by Digital Realty and carried out independently by Campos Research & Analysis).

Not your father’s data center

So as our economy becomes more digital, data centers will only become more critical to organizations of every size.

As technologies around cooling and air-flow evolve, and as building and infrastructure design innovations continue, companies need to make sure their data center provider has the vision and resources to be able to adapt to these new technologies.

With the advent of the cloud as a strategic business tool, more and more enterprises of all shapes and sizes around the world are seeking modern facilities to support their growing data storage and transfer needs. And we see this as more than a trend; we see it is an important step for companies seeking to gain a data advantage. 

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