Data Centers Feeling the Squeeze of Cloud Virtualization

As more abstract technologies like virtualization, software-defined architecture and the cloud continue to grow in the IT field, the traditional concept of the data center has begun to change with it. Not only has it now become temptingly cost-effective to move all of a company’s data to an external service provider (rather than house it in a company-owned and staffed data center), it has become increasingly difficult for companies to handle the amount of data required to support all of today’s info-driven devices and demands.

cloud-computing-quoteOne of the ways that IT companies are attempting to mitigate these increasing pressures is by seeking the help of an external service provider for their data processing. By essentially offloading workload to another party who specializes in providing appropriate data center support, companies not only find themselves able to cut the costs of building, staffing and maintaining their own data centers, but they also gain the comfort of knowing that optimal data storage and server function is the provider’s sole purpose and expertise. Not all IT companies are choosing to go this route, but it’s certainly catching on; according to research recently released by Synergy Research Group, spending on service provider data centers is exploding, while spending on enterprise data center equipment has begun to stagnate. According to data from market research company IDC, over the past 10 years, enterprise data center space has dropped by approximately 13%. In addition to that, enterprise data center space is expected to drop by a whopping additional 27% by the year 2020. Not only is spending shifting, but IT research and advisory company Gartner says the demand for software-defined data center programming capabilities may be required for as many as 75% of global organizations adopting modern IT by 2020.

On top of the market changes in spending and software-defined data centers, we have also seen a significant shift in recent years toward data-intensive solutions like apps that allow end-users to quickly access information and analytics from anywhere on the planet. With more and more power being placed in the users’ hands as technology advances (especially mobile technology), IT companies are starting to feel the crunch with regard to having to support these powerful, data-intensive applications. Ultimately, IT buyers are left with the difficult choice of where to spend the company’s money most efficiently. Is it worth it to invest millions of dollars in improving in-house servers and data centers, or is it simply cheaper and easier to purchase infrastructure with a third party service provider who can really focus on optimal data support?

With the potential costs rising and with service provider data centers on track to overtake enterprise data centers in the industry, it’s no surprise that so many companies are considering shutting down their own data centers and signing on with an external provider who can focus more completely on top notch data service.

Summary
Data Centers Feeling the Squeeze of Cloud Virtualization
Article Name
Data Centers Feeling the Squeeze of Cloud Virtualization
Description
As more abstract technologies like virtualization, software-defined architecture and the cloud continue to grow in the IT field, the traditional concept of the data center has begun to change with it.
Author
Publisher Name
RackSolutions
Publisher Logo