I’m always interested in data centers because because one of my friend live in Northern Virginia, he says where once it opens once a month, using a huge bundle of fibers emerging from the ground near Dulles airport and cheap energy sources. Indeed, now he call his region “Data Center Alley”.
The JLL report shows that the strong movement of data from private enterprise servers to cloud services, coupled with growing corporate interest in Internet (IoT), is driving the demand for these new data centers. As data usage grows rapidly, large cloud computing providers expect to triple their infrastructure by 2020, so they build or rent data center space to keep pace with growth.
But at the same time, businesses do not abandon their private or hosted traditional data centers. This is a natural part of the process, because you simply can not turn off legacy systems before you bring your functionality to public cloud platforms. This duality is the excessive cost of cloud migration.
Thus, in the near future we will have more data centers. However, since we share platform pools on public cloud computing providers and do this more efficiently, we need to have fewer data centers, right?
Not at least for the next ten years. There are several factors that cause this delay to reset the corporate data center:
First, enterprises do not plan to abandon their data centers. Although some companies have very publicly reduced their own data centers, most companies that have data centers will now receive them in five years. They just do not seem to believe in their wider use of the cloud, because ultimately they will reduce the use of a private data center.
Secondly, enterprises have tax and business reasons to hold onto their data centers. I have worked with many enterprises that have leasing data centers, which continue for another ten years. Moreover, CFOs often believe that owning hardware and software provides tax advantages that they do not want to hand over.
My bet is that storing obsolete data centers is costly and fast, so the factors that keep all the corporate data centers in use will change. Modernization is in order, and a more efficient way to do this is as part of the transition to the cloud, as well as modern data centers and services are already there.
Sooner or later, businesses will truly understand that the measure of success is how many effective services you work for your business, and whether you can physically touch on what equipment they are working on. These services will work in data centers, but less and less should work for those that you have.