Data Center Market Growth

data center market growth

Source: Data Center Knowledge

An interesting article that discusses the trend of; Data Center Market Growth is Rakesh Sharma’s Forbes article on What Drives Data Center Decisions.  In this article, Rakesh compares data centers to gold – data centers are a new resource, they are the new gold mines.

He goes on to cite Apple, Google and Microsoft’s planned data center expansions as indicative of an emerging trend in data management. All of these massive and highly valuable companies have recognized the benefit of investing in data center infrastructure by making use of the services of companies such as Data Centre Realty (DCR).

In some ways, this data center market growth can be seen as a migration back to the mainframe model, which made use of servers that were connected to terminals with keyboards. The original mainframe model allowed large companies to maintain records and to process their data. However, mainframes were replaced in favour of the client/server model which made use of several nodes that are part of a network which would then be connected to multiple clients. However, the new data center model reverts back to the use of a main center to store data.

Data center market growth has been evident across the marketplace. Sharma notes that even companies on the decline have made investments to expand their data center divisions, demonstrating how crucial a highly effective data center is to successful operations in the modern business center consulting firm

The Benefits of Owning a Data Center

While many firms rent data center space from data center companies such as Equinix, Rauof Abdel, who is the regional operating chief of Equinix, says that there are many reasons why it may be beneficial for a company to operate their own data center. The main reason he cites is that of economies of scale. In the long run, it can be cheaper and more efficient for a company to have invested in owning their own data center.

The second reason he cites is one of security. Data must be exchanged whenever a transaction is made, and customers will want to be sure that the data they provide remains secure. The best way for a company to provide a guarantee of security is by maintaining control of their own data center.

Third, owning a data center allows for a level of customizable scalability that allows companies to adjust based on the demand of their customer base. Abdel mentions that this is particularly key for companies undergoing market tests of new products, as demand is likely to fluctuate.

Locating Your Data Center

The decision of locating a data center is primarily influenced by finances, climate and network availability. Cooling costs can add up, and so many companies will choose a location where they can make use of outside temperatures to control the temperature of their infrastructure.

The availability and speed of network providers is also key because it allows companies to connect with their clients. Connecting to network hubs provides a connection more secure than a general internet connection that also provides access to many new customers, since the network hubs have clients themselves.