By Sameer Kulkarni, Chief Information Office, Core Integra
In today’s fast-paced digital world, the modernisation of data centres is a crucial endeavour for businesses and organisations seeking to stay competitive, efficient, and secure. As we continue to witness a data explosion and increasing reliance on cloud computing, the need for data centre modernisation has never been more apparent. This article explores the significance of modernising data centres, the key drivers behind this transformation, and the innovative technologies shaping the future of data management.
Current market statistics
The data centre modernisation market has been on a robust growth trajectory, driven by the increasing digitalisation of businesses, growing data volumes, and evolving technology trends. Here are some key statistics that highlight the market’s current state:
– Market size: The global data centre modernisation market is estimated to be valued at USD 13.2 billion in 2022, according to MarketsandMarkets. It is expected to grow at a Compound Annual Growth Rate (CAGR) of 12.0% from 2022 to 2027, reaching an estimated value of USD 23.5 billion by 2027.
– Drivers of growth: Several factors are propelling the data centre modernisation market forward. The shift toward digital transformation, the need for scalable and efficient infrastructure, and the increasing use of cloud services are among the key drivers.
– Cloud adoption: The global cloud computing market, a significant influencer of data centre modernisation, is expected to reach USD 623.3 billion by 2023, as reported by Statista.
The Imperative of modernisation
Data centres serve as the backbone of the digital age, where vast amounts of information are stored, processed, and delivered. However, many traditional data centres are facing challenges such as:
– Aging infrastructure: The rapid evolution of technology demands efficient, scalable, and secure data handling. Upgrading hardware, adopting virtualisation, and embracing cloud solutions are essential steps in this transformation. Modern data centres improve performance, reduce operational costs.
– Energy inefficiency: this results from outdated infrastructure and inefficient cooling systems. Modernisation aims to reduce this waste by employing energy-efficient hardware, server consolidation, and advanced cooling technologies. This not only lowers operational costs but also aligns data centres with sustainability and environmental goals.
– Security and compliance: The evolving threat landscape demands enhanced security and compliance measures. In 2021, cyberattacks rose by 93%, emphasising the urgency. Upgrading safeguards and protocols ensures protection against evolving threats and adherence to regulations, mitigating data breaches and their substantial financial and reputational consequences.
Key trends and innovative technologies in data centre modernisation
The data centre landscape is undergoing profound changes, reflecting the evolving needs of businesses and the dynamic technology environment. Several trends are shaping the modernisation efforts:
– Hybrid and multi-cloud adoption: A study by Flexera found that 92% of organisations have adopted a hybrid cloud strategy. This trend necessitates data centre modernisation efforts to seamlessly integrate with cloud environments.
– Edge computing: By distributing computing power closer to the data source, edge computing reduces latency and accelerates real-time data processing. The rise of edge computing is reshaping data centre strategies. MarketsandMarkets reports that the edge computing market is projected to grow at a CAGR of 34.1% from 2022 to 2027.
– AI and ML integration: These technologies are being employed to optimise data centre operations, improve predictive maintenance, and enhance security. AI and machine learning applications are driving the need for high-performance computing, increasing the demand for modernised data centres.
– Green data centres: Environmentally friendly data centres utilise renewable energy sources, advanced cooling techniques, and energy-efficient hardware. With environmental concerns on the rise, the market for green data centres is expanding. The global green data centre market is expected to grow at a CAGR of 12.5% from 2022 to 2027, as per Research and Markets.
– Security and Compliance Solutions: Advanced cybersecurity tools and compliance automation help safeguard sensitive data; Compliance is becoming mandatory with the all-new Data Protection acts.
Future growth prospects
The future of data centre modernisation holds promising growth prospects. Here is a glimpse of what we can expect:
With the increasing digitisation of businesses and the growth of IoT devices, the data centre modernisation market is poised to expand further. By 2027, it is projected to reach a value of USD 23.5 billion, indicating significant growth potential. Edge computing is set to become a dominant force in data centre modernisation. Its ability to process data closer to the source, reducing latency and enhancing real-time processing, makes it crucial in various industries, including autonomous vehicles, healthcare, and IoT applications.
The integration of AI and automation in data centres will play a pivotal role in optimising operations, enhancing predictive maintenance, and improving security. The AI in the data centre market is projected to grow at a CAGR of 23.7% from 2022 to 2027, according to MarketsandMarkets. The trend toward green data centres will continue to gain momentum as organisations strive to reduce their carbon footprint. Beyond environmental benefits, this approach can lead to cost savings and aligns with corporate social responsibility objectives.
The evolving threat landscape and increased data regulations will drive investment in advanced security and compliance solutions. The data centre security market is expected to grow at a CAGR of 12.9% from 2022 to 2027, as reported by Research and Markets.
Benefits of modernisation
– Improved performance: Modern data centres offer enhanced processing capabilities, leading to faster data analysis and reduced downtime.
– Cost savings: Energy-efficient infrastructure and cloud integration can significantly lower operational costs.
– Enhanced security: State-of-the-art security measures protect sensitive data against evolving threats. Data centres are moved from SOC 1 to SOC 2, now moving to Next Gen SOC.
– Environmental responsibility: Adopting green data centre practices demonstrates a commitment to sustainability and corporate social responsibility.
In conclusion, the modernisation of data centres is not merely an option but a necessity to meet the demands of the digital age. Businesses and organisations must invest in cutting-edge technologies and strategies to keep their data centres efficient, secure, and capable of handling the data-driven future. Those who embrace this transformation will be better positioned to thrive in an increasingly digital and competitive landscape.
