While the majority of day-to-day business interests have been affected negatively by the COVID-19 pandemic, its unpredictability, fast rate of spread, and continuing evolution around the globe, the world of Digital Business Transformation has accelerated successfully and far faster than IT consultants would have expected just a few short years ago. As the Tech Wire Asia article that we are covering in this blog post explains it, “For many organizations, a digital transformation that was expected to take years has been compressed into a matter of days and weeks. Entire industries are being reset, and digital infrastructure is front and center in the transition.”
It may be just coincidence that the growth of data centers coincides with the vast number of employees working from home or off-site at least part of the week, since most companies are relying more and more on IT operations anyways for digital phone lines, email communications, SaaS, digital presence, and currently – online meeting technologies such as Zoom, GoToMeeting and Skype. However, the rise of the home office and remote work is certainly putting more of a drain on company IT operations than previously, and this drain is causing more enterprise and stand-alone companies to consider solutions from outsourced IT and SaaS to Colocation. Hyperscale data centers are a phenomenon running parallel to the pandemic but already active before the pandemic.
Hyperscale data centers, defined loosely by the IDC as “any data center with at least 5,000 servers and 10,000 square feet of available space,” are on the rise. Consider these cooled and humming behemoths to be the shopping malls and cruise liners of the data center world – filled with all manner of servers, routers, cabling, cooling units, security systems and more. Many IT shops are considering the SaaS services provided by hyperscale datacenters as a viable offering instead of existing on-prem solutions. They are a sign of things to come, and valuable resources for those seeking data center migrations and relocations for their growing IT workload placement needs.
As this Tech Wire Asia article explains it, “To give an idea of how substantial the pandemic was for the data center industry, according to a new report from Synergy Research Group, in 2020 alone more than 100 new hyperscale data center facilities were built, taking the total number to almost 600. The research firm found that the total number of large data centers operated by hyperscale providers increased to 597 at the end of 2020, and has more than doubled since 2015. Synergy reported 430 hyperscale facilities in 2018, which grew to 500 in 2019. Microsoft, Amazon, and Google collectively account for over half of all major data centers and continue to be significant drivers of growth. Amazon and Google opened the newest data centers in the last twelve months, accounting for half of the 2020 additions. Synergy added that Oracle, Microsoft, Alibaba, and Facebook were also active last year.
Chief analyst John Dinsdale said there were 111 new hyperscale data centers opened in the last eight quarters, with 52 of those coming on-stream in 2020 despite Covid-19 causing a few logistical issues. ‘That is testament to the ongoing robust growth in the digital services that are driving those investments – particularly cloud computing, SaaS, e-commerce, gaming, and video services.’”
As data center consultants offering data center services to our Fortune 500 & 1000 clients, Altus Technologies is excited about the rise of these secure powerhouses of data storage and transaction. We will continue to assist our clientele in locating and recommending appropriate data center facilities & capabilities as part of a scalable data center workload placement strategy – to all of our valued partners for many years to come. We are excited for what lies ahead.
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