Dat­a­cen­ter Con­sol­i­da­tion And The Im­pact Of Colo­ca­tion

Dataquest - - CONTENTS -

His­tor­i­cally, the dat­a­cen­ter space has been highly frag­mented, with mul­ti­ple smaller play­ers hav­ing their own tech­nol­ogy, ge­o­graph­i­cal or net­work ad­van­tages. Glob­ally di­ver­si­fied or­ga­ni­za­tions would of­ten part­ner with dif­fer­ent dat­a­cen­ters for their colo­ca­tion needs, in dif­fer­ent parts of the world. This frag­mented ecosys­tem cre­ated a num­ber of chal­lenges: Re­source Chal­lenges: Typ­i­cal large or­ga­ni­za­tions, driven by legacy pro­cesses, would of­ten need to man­age sep­a­rate en­gi­neer­ing, IT sup­port and ven­dor re­la­tion­ship per­son­nel across dif­fer­ent ge­ogra­phies Process Chal­lenges: In­for­ma­tion se­cu­rity and gov­er­nance mech­a­nisms would need to be re­aligned, de­pend­ing of spe­cific ge­og­ra­phy, dat­a­cen­ter and ven­dor needs In­te­gra­tion Chal­lenges: Net­work, stor­age and com­pute re­sources of­ten vary from one ven­dor to an­other, mak­ing data and sys­tem in­te­gra­tion be­tween dif­fer­ent host­ing ser­vice providers dif­fi­cult With busi­ness agility be­com­ing a strate­gic need, us­ing a frag­mented set of host­ing ser­vice providers cre­ates sig­nif­i­cant chal­lenges in re­spond­ing to chang­ing mar­ket

needs. This greatly lim­its or­ga­ni­za­tions’ abil­ity to com­pete. Com­pa­nies may look to con­sol­i­date to mend the frag­men­ta­tion of their host­ing ser­vice providers and com­pete at a higher level.

DAT­A­CEN­TER CON­SOL­I­DA­TION: BEN­E­FITS FOR COLO­CA­TION

Ac­cord­ing to the Global Data Cen­ter UPS Mar­ket 20172021 re­port, dat­a­cen­ter con­sol­i­da­tion is ex­pected to lower costs by 30%, re­duce power con­sump­tion by 55%. Or­ga­ni­za­tions look­ing at colo­ca­tion ser­vices stand to ben­e­fit greatly from dat­a­cen­ter con­sol­i­da­tion.

Ser­vice Qual­ity & Con­sis­tency: There has been a sig­nif­i­cant growth in big data, con­sumer de­vices, mo­bile apps and an­a­lyt­ics tech­nolo­gies, that lever­age legacy ap­pli­ca­tions (on-premise, hosted or col­lo­cated in­fra­struc­ture) as well as cloud (in­fra­struc­ture, plat­forms and ser­vices). By con­sol­i­dat­ing data cen­ters and ser­vice providers, or­ga­ni­za­tions can lever­age a sin­gle ven­dor re­la­tion­ship and en­joy a uni­form qual­ity of ser­vice across all re­sources.

Stronger Se­cu­rity & Gov­er­nance: Hav­ing a uni­fied ser­vice provider for colo­ca­tion needs across the world al­lows or­ga­ni­za­tions to cre­ate uni­form, global poli­cies for data ac­cess, user roles and data gov­er­nance. Hav­ing a com­mon hu­man / sys­tem in­ter­face for all colo- cation needs across the world, al­lows com­pa­nies to bet­ter track uti­liza­tion, costs and op­er­a­tional ef­fi­cien­cies.

Man­aged Ser­vices: Dat­a­cen­ter con­sol­i­da­tion also sig­nif­i­cantly min­i­mizes IT com­plex­ity in terms of de­sign, ar­chi­tec­ture, en­gi­neer­ing, in­te­gra­tion, test­ing, sup­port and main­te­nance. This al­lows colo­ca­tion ser­vice providers to of­fer end-to-end man­aged ser­vices with pre-de­fined SLAs.

IN­DUS­TRY CON­SOL­I­DA­TION

With the fo­cus on cost re­duc­tion, in­dus­try lead­er­ship and world- class ser­vice qual­ity, the dat­a­cen­ter in­dus­try is quickly con­sol­i­dat­ing. The last year saw a sig­nif­i­cant num­ber of M& A deals in the colo­ca­tion and dat­a­cen­ter space, no­tably by com­pa­nies such as NTT Com­mu­ni­ca­tions, Equinix, Iron Moun­tain and Dig­i­tal Realty. With in­creas­ing com­pe­ti­tion, dy­namic scal­a­bil­ity needs and ris­ing cost pres­sures, the in­dus­try is ex­pected to see fur­ther con­sol­i­da­tion in 2018. Over the next few years, we can ex­pect a sig­nif­i­cant change in the way colo­ca­tion ser­vices are de­liv­ered and man­aged.

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