Tag Archives: data center

Cloud Technology Provides Opportunity for Data Centers to Reorganize

Learn how cloud services are helping data centers reorganize.The days of major data center expansion are numbered. That’s what a recent survey by 451 Group’s Uptime Institute indicates may be the result of increasing traffic in the cloud. Companies are no longer stretched thin at their data centers, but are instead looking for ways to reorganize them now that the cloud is relieving storage space problems.

The survey included a variety of executives from traditional enterprise companies, including IT directors and facilities managers from retailers, banks, and manufacturers. Here are some of the key findings about how data centers are being impacted by increasing cloud software and storage investments:

The shrinking isn’t proportional: The expansion of cloud technology and investment in software in the cloud has resulted in companies feeling a bit of relief in their data centers. Storage options available in the cloud mean that IT departments may experience a little less push to keep expanding data storage. In most cases, however, this relief is not experienced at the same pace that cloud investment is growing.

Capacity planning is still a big investment: Almost half of the respondents responsible for facilities were working on upgrading infrastructure, cooling infrastructure, and improving power availability as part of their capacity planning strategy.

New data centers are still springing up: 30 percent of respondents were involved in plans to build new data centers.

Getting more out of existing data centers: While many companies are using third-party vendors to handle increasing demand for data storage, they are also focusing on improving support for existing on-site systems. An IT director is no longer seeking out a $50 million investment in a data center, but is instead asking for smaller amounts to improve the data center that’s there. In most cases, it’s turning out to be easier to get approval for investments in supporting and protecting the legacy technology.

IT teams work with various solutions to handle demand for storage: The survey revealed that 40 percent of respondents will work to consolidate servers in the next year and 33 percent will deploy additional workloads to the cloud. Thirty-three percent of respondents say they will update or upgrade their existing physical infrastructure.

While the cloud provides solutions for a wealth of processing and storage challenges, companies are recognizing the need for continued investment in on-site resources. Cloud storage provides much-needed relief for over-stretched data centers and allows IT teams to focus on improving support and security for their legacy systems.

Want to know more about how cloud is affecting the data center? Check out MicroCorp’s Data Center Market Report library for industry expertise.

To learn more about how the cloud is impacting the IT practices of individual companies like yours, talk with our specialists at MicroCorp, experts in cloud, connectivity, and communications.

Expanding Data Center Trend Continues

Learn how channel partners can stay ahead of the data center industry's growth.The data center industry continues its rapid growth in 2017 to meet the storage demands of existing robust cloud providers. At the same time, the vacancy rate of U.S. data center space is 4.6%, according to real estate brokerage firm CBRE. Even though tightness remains for server capacity, there is still much more data center development on the way.

Geography of Expansion

Most of the construction going on in 2017 for new data centers is in Northern Virginia, which is expected to add 121 MW of power. Other key places for larger data space include the Dallas-Fort Worth area and Silicon Valley in California. According to CBRE, about 271 MW of capacity is being built in big metropolitan areas, of which 160 MW is under construction without signed leases from vendors.

Will Expansion Pay off for Cloud Providers?

Data facility owners are expected to do well in 2017 in terms of a balance between supply and demand, according to real estate experts. It appears to be a positive move for modern data centers that can offer a multitude of cloud and managed services. As owners of traditional data centers move into outsourced data centers, the door will be opened for more vacant facilities to be sold.

In 2016, data center asset sales reached $1.78 billion with an average price per square foot of $275. Acquisitions that had not yet closed by the end of the year included Equinix’s purchase of Verizon data centers in the Americas and CenturyLink’s proposed acquisition of BC Partners and Medina Capital. Data facility owners with the greatest potential to capitalize on rising demand for network connectivity and pricing are those in heavily populated areas.

What Expansion Means for IT

The IT industry is challenged by tight budgets and limited space. That puts IT firms in a position to make one of three choices, according to CenturyLink:

  1. Construct a new facility
  2. Upgrade an existing data center
  3. Outsource with a trusted provider

The key factor in choosing what to do to meet growth challenges will be for IT companies and the businesses they serve to evaluate costs together. The increasing emphasis among businesses on big data and analytics is part of what’s fueling this steady expansion. Other reasons for this growth include:

  • Demands to replace outdated technology
  • The trend toward globalization
  • Mergers and acquisitions, and spinoffs that require more space
  • Increasing interest in more disaster recovery server space

Conclusion

MicroCorp has been supporting MSPs, VARs, and agent partners for over 30 years. If you’ve run out of server space or need a more efficient data center solution, contact us to learn how we can accommodate your technology needs.