data center strategy presentation

Corrin Jones

July 11, 2023

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12 considerations for an effective data center strategy.

Data centers enable organizations to store, process and manage vast information. Globally, IT data center spending will reach $222 billion this year . Remote work, digital transformation and the Internet of Things (IoT) are just a few trends driving increased adoption of data centers. Data center growth isn’t slowing as the demand for more storage space and faster processing times accelerates.

With the increasing adoption of cloud computing and hybrid infrastructure models, organizations face the challenge of developing an effective data center strategy that aligns with these environments and the complexities of the data we capture and use. An effective data center strategy ensures reliable operations, optimal performance and scalability. This article will explore 12 critical considerations for developing an effective data center strategy in cloud or hybrid environments.

Understand Workload Requirements

Cloud provider selection.

Choosing the right cloud service provider or providers is paramount to your success if you opt for a hybrid or cloud-based data center strategy. Before selecting a provider:

• Evaluate their reliability, scalability, security, compliance, pricing models and customer support.
• Ensure that the providers align with your organization’s goals and effectively meet your workload requirements.
• Apply this same best practice whether you’re single or multi-cloud.

Data Governance and Compliance

Maintaining data governance and ensuring compliance with relevant regulations is crucial in cloud or hybrid environments. Understand the data protection regulations that apply to your industry and ensure your data center strategy includes proper data classification, encryption, access controls, and audit trails. Select cloud providers that offer compliance certifications and robust security controls.

Connectivity and Network Integration

Scalability and elasticity, disaster recovery and business continuity.

Cost Optimization

Security and identity management, performance monitoring and optimization, data migration and interoperability, vendor management and sla monitoring, continuous optimization and adaptation.

This labor-intensive process is where Red River can help your business. We offer our clients a turnkey way to manage data center operations with our managed service. With more than 25 years of experience, Red River allows companies to leverage the benefits of cloud, on-premises and hybrid data center strategies through our design, deployment and maintenance of these critical infrastructures. Call on our team. We can help.

Why do you need a data center strategy?

A data center strategy is essential for organizations to achieve scalability, performance, cost efficiency, data security, disaster recovery and seamless integration with their cloud services. This process helps organizations align their IT infrastructure with their business objectives and ensures a reliable and resilient foundation for any digital infrastructure.

What is the top consideration when developing a data center strategy?

Companies should consider several factors when developing their data center strategy. It isn’t easy to define one consideration. However, creating your business requirements and objectives is the first step toward aligning your data center strategies with your goals. Understanding the specific business needs around performance, scalability, security, compliance and cost is the most critical first step toward developing your overarching data strategy.

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A 6-Step Approach to Data Center Transformation Strategy

Data center transformation, consolidation, and migration projects often stretch customer IT operations teams. Most of the time, the team’s skillset and procedures cannot cope with the amount and nature of the changes in the physical environment. The enterprise’s IT transformation roadmap would provide insight to validate the future state IT requirement that will lay the foundation for the data center strategy and meet business objectives. There’s a healthy, built-in distrust between facilities, real estate, and IT teams.

Very often I am asked by customers to validate their “future state” IT requirements and to help develop their data center strategy to support their IT transformation roadmap.

It helps that as a practice, the methodology we apply is to combine our internal IT transformation best practices with client transformation best practices to create a global transformation methodology. Over the last 15 years, we have tested and improved this methodology at hundreds of customer sites. It is important to develop a future-state data center roadmap, on behalf of (and collaboratively with) the customer’s team. As a result, the delivery framework will be highly effective at every level to ensure deliberate structure, processes, and professional capabilities as we collectively move forward in the development of a practical and right-sized future state data center roadmap.

Key elements of our methodology and capabilities are typically part of a 6-step approach, from business requirements and their impacts on IT architecture framework, and from IT requirements to the data center strategy itself. It can be summarized as follows:

1. Paint-by-numbers

Combine integrated business, risks, technology, and data center facilities strategic planning capabilities utilizing a “paint-by-numbers” approach that breaks large complex data center programs into bite-sized chunks, enabling deliberate focus and attention to detail throughout the process. Our delivery framework is based around a unique ability to “glue together” relevant profile components that enable integrated, predictable, and right-sized data center frameworks over time.

2. Set a risk tolerance

From the paint-by-numbers framework step, the next phase involves determining risk tolerances derived from each stake-holding group driver. This sets the stage for the manner in which IT and data centers are properly planned, built, and managed for the long term. 

3. What type of data center?

In-depth expertise is needed around the types of data centers and site-specific attributes that are key contributors to future state strategic planning efforts. Data center attributes include the understanding and/or development of reliability and availability requirements for IT architecture, IT infrastructure, and data center facilities. It is very important to understand how both the technology and facility infrastructures interact within the areas of risks tolerances, availability, and reliability requirements in order to properly develop the right-sized future state data center, synchronized with specific operational models.

4. What type of expert?

Enterprises should validate that their intended vendor has the levels of experience and expertise to: completely rationalize and predict the impacts from risks, make technology decisions that dramatically impact future state data center sourcing options, and decide the manner in which they are chosen, positioned, sized, and managed over time.

5. Model projections

This involves validating the modeling tools, be they In-house or industry-sourced, to be used by teams to project data center space, power, and cooling requirements over a 5- to 10-year period. This enables much higher levels of predictability, agility, and manageability over time.

6. Know the numbers

You’ll need an in-depth understanding of the cost modeling and ROI analysis for your future state data center frameworks. There are always costs associated with business, risks, and technology decisions that directly pertain to future state data center frameworks.  Enterprises need assurance that their consultants have the comprehensive capabilities and toolsets to enable accurate and reliable costs modeling. Understanding the implications, and possible consolidation and/or optimization savings over time, are core components to enhancing current capabilities and future projected capabilities, while also aligning and simplifying the ROI of technology and facilities infrastructures from a CAPEX and OPEX perspective.

Applying the 6-step Approach

Track One begins with understanding business objectives and vision, ascertaining the risk and technology profile, and developing a gap analysis from current capacity and utilization states.

Track Two sets the main objective to develop the future demand model in terms of space, power, and cooling. From this, the future data center topology and the required resiliency for each data center facility under consideration can be established.

Track Three creates the master plan with reviews on sourcing options, operating models, and transformation strategy. Typically, this also includes building financial scenario modeling and business-case development.

Is it valuable to incorporate data center strategy into digital transformation strategies?

In today’s hybrid cloud world, made up of cloud, on-premises, and hosted platforms, it’s incongruous to leave the impact of the on-premises facilities piece off the table. By including the data center facility footprint  it can be placed alongside other drivers such as virtualization, cloud-native development, scalability, energy efficiency, standardization, flexibility, and automation, while gaining a more comprehensive picture of reducing a truer total cost of ownership.

In fact, it is often the case that I am, along with colleagues, brought in, initially on a data center consolidation exercise. We help customers unleash the constraints of their existing facilities and help them rationalize their future facility needs versus IT needs and service objectives, avoiding potentially significant over-costs.

For more information on HPE’s digital transformation strategies, visit  www.hpe.com/digitaltransformation . For further information please reach out to [email protected] .

____________________________________

About Ashok Kumar

Ashok leads the worldwide strategy services under HPE’s DCTS practice with an additional focus on India for developing Data center as a Service.  As part of his current role, he delivers strategic consulting for the HPE’s Data Center Consulting covering services such as Data Center Roadmaps, Digital Transformation Strategy, Data Center Consolidation Strategy, Future State Planning and Strategies, ITSM Assessments, Financial Modeling and Analysis of the future state. His responsibilities also extend to review of IT strategy and operations framework along with facilities audit for risk assessments. He provides recommendations on Site Selection and facility topology with criteria.

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Part one of this series examined the dynamic forces behind data center retransformation. Now, we’ll look at designing the modern data center, exploring the role of advanced technologies, such as AI and containerization, in the quest for resiliency and sustainability. 

Strategize and plan for differentiation 

As a leader, you need to know where you want to take the business—understanding the trajectory of your organization is nonnegotiable. However, your perspective must be grounded in reality; meaning, you must understand the limitations of your current environment: 

• Where does it currently fall short? 
• Where have you already identified room for improvement? 
• Where can you make meaningful changes? 

The answers to these questions can help guide your transformation plan with achievable goals. Changes will likely come through outdated, disjointed technology systems and inefficient, costly processes. 

It’s also important to clearly define the role of new advanced technologies in your new environment. AI and containerization are not just buzzwords. They are powerful tools and methods that can help you drive efficiency, agility and resiliency throughout the data center and into everything the business does through digital means. 

• AI offers insights and the ability to automate capabilities intelligently. 
• More than half of surveyed organizations seek to increase value and revenue through the adoption of generative AI .  
• Containerization gives you greater flexibility and growth potential in deploying applications in any hybrid cloud environment that you can envision (and need). 
• Gartner predicts that 15% of on-premises production workloads will run in containers by 2026 .  

Don’t just keep pace with these advancements in technology. Use them and build advanced data-driven processes around them to enable your entire organization to create a distinct, competitive edge. 

When you have your objectives and mission clearly defined, you can develop a strategic plan that incorporates advanced technologies, processes—and even partner services—to achieve the outcomes you’ve outlined. This plan should not just solely address the immediate needs but should also be flexible and adaptable to overcome future challenges and use future opportunities. It should also include resiliency and sustainability as core tenants to make sure you can keep growing and transforming for years to come. 

Use data and automated precision to produce results

What is automated precision? When you can integrate data, tools and processes to manage and optimize various aspects of a data center, automated precision becomes about harnessing technology to run operations with: 

• High accuracy 
• Minimal intervention 
• Consistent performance 
• Predictable outcomes 

The global data center automation market was valued at $7.6 billion in 2022. It is expected to reach $20.9 billion by 2030.

Automation will play a pivotal role in transforming the data center, where scale and complexity will outpace the ability of humans to keep everything running smoothly. For you as a business leader, this means pivoting from manual methods to a more streamlined, technology-driven and data-enabled approach. 

AI is a critical component in this advancement toward automated precision. Able to analyze large data sets, predict trends and make informed decisions, AI’s role will be to transform mere automation into intelligent operation . 34% of surveyed organizations plan to invest the most in AI and machine learning (ML) over the year.  

When you apply AI-enabled automated precision to your data center, you can: 

• Handle repetitive, time-consuming tasks with unmatched speed and accuracy 
• Free up human resources for more strategic initiatives that can’t be automated 
• Identify anomalies swiftly and predict failures before they occur 
• Intelligently distribute resources based on real-time demand 
• Detect and mitigate threats more effectively compared to traditional methods 
• Optimize power usage and reduce waste in alignment with your sustainability goals 

Chart a course for resilience and sustainability 

The evolution of the data center helps position your organization at the forefront of technological advancement and at the heart of sustainable business practices. Adopting a modern data center that embraces AI, edge computing and containerization can help ensure that your organization will emerge as a dynamic, efficient and environmentally conscious business. 

IBM® and VMware can help you design the data center of the future—one that uses automation, hyperconvergence and cloud technologies to support high performance, reliability and sustainability. With offerings for security, compliance, analytics and containerization, IBM and VMware can ensure that your modern data center meets your business goals

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How to create an effective data center transformation strategy

Today’s IT organizations face a difficult task.

They must keep their businesses responsive in a dynamic marketplace and glean real-time actionable insights from expanding volumes of data. And they must do it while integrating new systems into legacy infrastructures and staying compliant with security obligations.

With the right plan, navigating this complex endeavor is much more manageable. But too often, organizations don’t know where to start – or worse, they start in the wrong spot.

Here are a few pointers to help you start developing an effective data center transformation strategy.

Identify all your business requirements

Too often, businesses focus their attention on infrastructure first, believing that if they simply move their environment to a software-defined model, they can take their time figuring out next steps later.

This mindset has led many organizations to push their legacy applications to the public cloud without optimizing that placement – effectively putting the cart before the horse.

Before attacking your infrastructure, first identify your broad spectrum of business requirements – everything from supply chain management through individual workflows, data capture, and constantly evolving customer experiences. Virtually every aspect of a modern business can be impacted by the infrastructure choices you make.

Define what you are trying to achieve, and how new technology could help you compete in your ever-changing marketplace. As you observe what works for similar organizations, make sure your comparisons are valid.

Take Walmart and Amazon, for example. Both companies seem to occupy a very similar market niche – an “everything” store that offers near-instant satisfaction and deep discounts. But their respective business models drive very different IT infrastructure requirements.

Amazon has essentially revolutionized online shopping fulfillment, delivering products to the doorstep in minutes, whereas Walmart enriches the brick-and-mortar shopping experience with innovations such as in-store product finder apps that guide customers to their item, saving time and energy. Similar markets, vastly different models – and different IT infrastructures.

Customer needs are a subset of your total business requirements, and all should be clearly defined before embarking on any data center transformation journey.

Establish an application-centric mindset

After you identify how business strategies should drive your data center solutions, it’s important to turn your attention the applications that are critical to the success of individual employees and your business as a whole. Look at your current application infrastructure and profile the applications you need to achieve these desired results, including both the transformative applications that drive your current business – and will set the pace for your future – as well as the important legacy applications you require. Additionally, plot out the applications you’re presently building and the ones you plan to build going forward.

With this information, define the requirements for each application. For instance, will it need to scale rapidly, is it going to generate large amounts of data, what levels of security and availability does it need, what is most cost-effective, and so on?

Your business requirements are going to dictate your application requirements. Once you have a clear picture of the latter, you can design an infrastructure solution that will support the needs of both current and future applications.

Build the framework you need

You’ve identified your business requirements and created a plan for your applications, determining which ones to modernize, maintain, or retire. Now it’s only a matter of matching these applications to the appropriate infrastructures. Seems simple enough, right?

Hardly. Businesses are in a significant state of transformation, and there is a fundamental change in the way applications are being written, whether for cloud, on-prem, or a hybrid model.  Moreover, the apps that customers use to conduct business with you are evolving as well.

Your data center infrastructure must be designed with your applications in mind. However, you have your current application landscape and a future transformative landscape to consider. And these are often tied to conflicting interests within a business. And so, it falls to you to prioritize it all to ensure applications are delivering the best value to your customers.

Still another design consideration is building in flexibility to grow and change as new technologies arise, so that your business is not locked into a proprietary solution that precludes taking advantage of tomorrow’s innovations.

Start your transformation journey with a trusted advisor

A modernized infrastructure is essential to remain competitive and secure. But the fact is, achieving a smart, effective IT transformation is harder than ever in today’s dynamic and challenging digital landscape – and missteps and do-overs are costly.

That’s why your first task is to bring in a partner with the experience and record of real-world design wins to help you navigate these myriad alternatives, pinpointing where and how to best invest for success.

An experienced advisor can help ensure that you construct a flexible framework that delivers enough performance to handle demanding workloads today and tomorrow, optimizes app placement, and implements managed security to protect critical assets and keep people safe.

SHI can help you get there with confidence. Contact us to learn more about our experience-based approach to data center transformation.

About the author

Jason Lamb is a Cloud Solutions Specialist at Intel with over 30 years of enterprise data center infrastructure experience. In his role, he advises Intel’s end-user customers, partners, ISVs, and OEMs on best practices for developing cloud and cloud management strategies and architecting and designing data center modernization blueprints with software defined infrastructure projects.

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Digital Transformation

June 30, 2023 | Matt Pacheco

A Complete Guide to an Effective Data Center Consolidation

As businesses grow and evolve, change is inevitable, and this extends to changes in the allocation and use of data centers. Whether you’re looking to consolidate data centers due to a merger, or out of a desire to reduce complexity and cost, there are several things you need to consider for the consolidation to be effective.

What is Data Center Consolidation?

Much like it sounds, data center consolidation is a strategy designed to reduce your data center footprint . It can streamline your workload in a way that results in big advantages. When you work to consolidate data, you can enjoy cost savings, improved security, energy efficiencies, and increased productivity. Additionally, with the right strategy, you can still have reliable, fast access to your centralized resources no matter their location.

Importance of Data Center Consolidation

Is your business growing? Or have you been running workloads out of multiple data centers or a combination of on- and off-premises facilities? You may benefit from a data center consolidation project.

When done correctly, data center consolidation efforts can…

• Boost operations
• Make the use of IT assets more efficient
• Reduce redundancies
• Make the experience better for the end-user

Benefits of Data Center Consolidation

There are numerous benefits that accompany data center consolidation efforts.

Physical Location

If one of your current data centers is in an area prone to extreme weather and disaster, consolidating to a data center in a less vulnerable location or one that is designed to handle such events can improve security and reliability for your infrastructure and end users. The data center may also include physical elements that make it less vulnerable to threats, such as cooling and fire suppression systems.

Shifting from CapEx to OpEx

In a CapEx model, organizations pay for infrastructure costs upfront, such as hardware, and all of the costs needed to build an on-premises data center. With OpEx, on the other hand, businesses only pay for the services and equipment they use, typically on a subscription-basis, which is provided by a third-party. Using a third-party data center is considered OpEx since you pay for the space/resources you use and the time in which you use it.

Many data centers are under utilizing their capacity, but still paying for it, under the CapEx model. In an OpEx model, organizations are able to scale what is needed rather than invest up-front in infrastructure/hardware that is not currently needed.

For organizations with variable needs, or ones that may grow in the future, shifting the approach from CapEx to OpEx can save money and reduce the likelihood of having to make major investments that may take years to pay off.

Energy Efficiency

Consolidating your workflows and shutting down unnecessary servers or redundant systems leads to efficiencies in data processing and reduced energy consumption. According to a recent study by the University at Buffalo , “Data center managers can reduce energy consumption 10-30% by consolidating jobs to as few servers as possible when workloads are high, and evenly distributing the workload across all servers when loads are low.”

Additionally, an Energy Star study found that decomissioning a single server can help businesses save around $500 in energy costs and $1,500 in hardware maintenance costs on an annual basis.

Physical Security

If your consolidation plan includes a move to a third-party data center provider, you can enjoy the benefits of their physical security systems without the burden of implementing your own, including security cameras, an access control system, environmental controls, and a secure perimeter.

It is also important to ensure your data center provider meets your compliance requirements, such as HIPAA, SOC 2, HITRUST, etc.

Complexity Reduction

When you spread out your data, your risk increases. Here’s an example. Say you’re a business that’s spent the last decade on acquisitions. You now find yourself with data in 10 locations with different security standards. In the event of a security breach, you may find yourself in a tangled mess.

Data center consolidation means you can also monitor your data from a central point. This is true even if your workloads are hosted in multiple centers run by the same provider or if you’re computing on the edge. Third-party data centers have in-house data security experts who offer services that will best protect your data.

Increased Productivity

Imagine the effort it takes to pull one lever in three different locations. Now imagine the effort it takes to pull it in one place, even if you have to do it three times. The more you streamline your processes, the more you save time and money while stregnthening uptime and availability.

With a third-party data center, you also have options for managed services. These services will help you augment your team with onsite data center experts. That benefit can free up significant time so your team can focus on strategic revenue-generating projects.

Cost Reduction

With proper planning, data center consolidation projects can reduce your costs considerably. To attract more customers and effectively compete, data center providers have reduced their rates for leasing. Moving to a provider from on-premises shifts costs away from onsite management.

When you consolidate your workflows into a single colocation facility , you can also reduce redundancies in processing and staff resources for more savings.

Access to Managed Services

Most third-party data center providers offer additional managed services for customers. These can include remote hands, routine maintenance, a workspace for business continuity purposes, network services, and more.  

Data Center Consolidation Risks

Data center consolidation can also come with downsides. Understanding what they are, and preparing to counter them, is the best way to keep the move a beneficial one.

Especially when consolidation is in process, business operations can get interrupted, leading to downtime. The best way to keep this from happening is by having a team of data center facilitiy experts provide a comprehensive consolidation and migration strategy with a roadmap in place incorporating client maintenance windows.

Loss of Data

Data loss in the consolidation process can come from human error, security breaches, and technical failures from hardware or software. Moving to a smaller data footprint can reduce complexity, but it can also mean that mistakes or vulnerabilities have a greater impact on your infrastructure.

Compromised Data Security

Likewise, having a single point of failure post-consolidation can make security risks more impactful. Maintaining a failover point at a second data center, even when looking to simplify, is an important safeguard for businesses looking to stay operational when experiencing a disaster or breach.

Data Center Migration Strategy

Consolidation will include at least one data center migration , where you will be moving data, applications, and infrastructure from one data center to another. The process is often more complicated if you are moving from an onsite data center to a third-party provider. Developing a strategy that includes goals for productivity, redundancy, network connectivity, scalability, efficiency, security, compliance , and performance can help you get the most out of the migration.

Data Center Consolidation Best Practices

• Hardware Assets : Take stock of the hardware being used in your current environment. If you own servers, networking equipment, and storage devices, that’s something you’ll need to think about before consolidating and moving to a data center provider. Set a time in advance of the move to re-boot all equipment to ensure they will turn on properly.  Will you take the equipment with you to a colocation data center , or will you decommission and sell it? This may depend on the age of your equipment, the future plans of your business, or your current budget.
• Facilities and Energy Usage : To determine that you’ll actually be saving money by consolidating, you’ll want to evaluate the current energy usage and the cost of maintaining facilities and compare it to what you expect your expenses to be in a new data center. If you’ll continue to manage your own data center, you need to factor in the costs of cooling, heating, security, and everything else needed to run the facility. If you migrate to a data center provider, your main cost will be based on the space and power you’re using in the building.
• Geographic Location and Real Estate : Different geographic locations are susceptible to different environmental conditions. There also may be differences in price due to market demand in certain cities. The buildings themselves may also have desirable features, such as environmental controls and security measures. Also consider network latency, which can also vary by location.
• Software Assets : If you’re consolidating due to a merger, you also want to think about the state of your software. What needs to move into the new data center? Is there anything that can be pared down prior to migration? Do you need to make changes to licensing agreements or find integrations for additional critical software?
• Data Center Consolidation Disaster Recovery Planning : Because you have fewer points of failure , you’ll want to keep that in mind when doing disaster recovery planning. You should understand the impact a disaster may have on your systems in a consolidated environment long before anything happens. One of the services your data center provider may offer to help with this is disaster recovery as a service (DRaaS).

Once you have an idea of the current environment, where you’ll be consolidating your systems, backup plans, costs, and assets, you should work on a design of what the new infrastructure will look like. Data center infrastructure management (DCIM) software can be used to create a virtual representation of your consolidated environment.

Consolidate

The consolidation plan gets enacted on the day you start moving everything. It should outline any equipment migration, potential phases, team access needs and responsibilities, and clear instructions to go with the design. The more you plan ahead of time, the less downtime you’ll experience.

Working with a Managed Service Provider During Data Center Consolidation

Data center consolidation is a major change to your IT infrastructure. And it’s a project that requires expertise and planning to mitigate risks and downtime. An IT consulting service should help you benefit from new technologies and adapt your IT infrastructure to meet new business requirements. Professional help with consolidation strategies means you’ll get support for:

• Physical and cloud migrations
• Security consulting
• Disaster recovery
• Business continuity planning
• Cloud readiness assessments

TierPoint’s team of experts can guide you toward the right data center approach as part of your overall IT modernization strategy . Together, we can review your entire IT infrastructure to find the right data center optimizations that will help you achieve your modernization goals. Read our guide on IT Modernization and Optimization to find resources to help you learn more and achieve those goals.

One common reason businesses may be looking to perform data center consolidation is when they merge with another organization and need to combine data into one system. Another is when a company is looking to move their onsite data center to the cloud.

During data center migration, a business should be thinking about what they want to achieve through migration, what the current data center looks like, where they’re moving, and how they’re going to get there. All of these steps should be outlined in a data migration strategy.

If the cost of maintaining multiple data centers outweighs their performance and efficiency, it may be time to opt for data center consolidation. It may also be something organizations consider if they’re looking to reduce complexity and improve security processes.

Mar 26, 2024 | by Channing Lovett

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Data Centers 101: A Beginner’s Guide To Understanding Core Concepts

• May 29, 2024
• Data Center Evolved

All modern businesses need access to data centers. Even the most traditional businesses have to make use of online services. Modern businesses, particularly large ones, are highly reliant on data centers.

That being so, it makes sense for everybody involved in business to have at least a basic understanding of data centers. With that in mind, here is a beginner’s guide to data centers and their core concepts.

What are data centers?

Data centers are facilities equipped with computing and networking resources for storing, processing, and managing digital data. Generally, the term “data center” refers to a centralized facility designed to cope with significant volumes of data and advanced data processing.

There are, however, also “edge data centers” . These are small-scale facilities designed for simpler processing tasks on lower volumes of data. These data centers are typically situated near to where data is generated and/or used. This tends to be at the edge of a network, hence the name.

How data centers are implemented

Some data centers (both traditional and edge) are owned and run by the organizations that use them. These days, however, it is increasingly common for organizations just to buy access to data center infrastructure.

Colocation services allow businesses to deploy their own equipment in managed data center facilities. Public cloud services allow businesses to use infrastructure, platforms , and/or software on an as-a-service basis. This means the vendor takes care of all aspects of data center management.

Components of data centers

Here are the five main components of data centers.

Servers : Servers execute computational tasks, host applications, and store data. Data centers often deploy various types of servers including rack servers, blade servers, and specialized servers optimized for specific workloads.

Networking equipment : Networking equipment facilitates connectivity between servers, devices, and users. Data centers usually invest in the best networking equipment available at any point in time. For example, currently, data centers will use fiber optic cabling and 5G mobile networking as much as they can.

Storage systems : Data centers typically utilize a variety of storage systems for different purposes. For example, hard disk drives (HDDs) may be used for slow-access storage. Solid-state drives (SSDs) will be used for fast-access storage. Many data centers implement storage area networks (SANs). SANs enable centralized storage provisioning and management, facilitating efficient data storage and retrieval.

Power infrastructure : Power infrastructure provides the electrical power necessary for data center operations. To protect against the impact of disruptions, data centers typically implement redundant power infrastructure. This usually consists of (UPS) systems and backup generators. UPS systems provide backup power in case of utility outages, while backup generators ensure continuous operation during prolonged power failures.

Climate-control infrastructure : Although the equipment used in data centers has become more energy-efficient over the years, it still generates a lot of heat. This means that data centers need robust cooling systems. They also need systems to manage humidity as excess moisture can seriously damage equipment.

The role of data centers in IT infrastructure

Data centers play multiple roles in IT infrastructure. Here are five of the main ones.

Data storage : Data centers serve as repositories for digital data. They utilize various storage technologies such as hard disk drives (HDDs), solid-state drives (SSDs), and cloud storage solutions to accommodate diverse data types and workloads.

Data processing : Data centers provide the computational power necessary for processing and analyzing data. Through high-performance servers, parallel processing techniques, and distributed computing frameworks, they enable efficient data processing for tasks such as analytics, machine learning, and real-time decision-making.

Connectivity : Data centers facilitate connectivity by hosting networking infrastructure that interconnects servers, devices, and users. They employ high-speed networking equipment, redundant network paths, and peering agreements with ISPs to ensure reliable and low-latency communication between distributed systems and end-users.

Security and compliance : Data centers implement robust security measures to safeguard sensitive data and infrastructure from unauthorized access, cyber threats, and data breaches. These measures include access controls, encryption, intrusion detection systems (IDS), and compliance with industry regulations and standards (e.g., GDPR, HIPAA).

Disaster recovery and business continuity : Data centers play a critical role in disaster recovery planning and business continuity by implementing backup and replication strategies. Through data redundancy, offsite backups, and failover mechanisms, they mitigate the impact of unforeseen events such as hardware failures, natural disasters, or cyberattacks, ensuring minimal downtime and data loss.

Understanding uptime

As data centers are core to business operations, it’s essential that they operate as intended as much as possible. A data center’s ability to maintain operations is known as its uptime.

When organizations run their own data centers, they are responsible for maintaining uptime. When organizations use third-party data centers, the vendor usually provides an uptime guarantee. This is typically expressed as a percentage. The current industry standard is 99.999%. Some data center vendors offer even higher guarantees.

As always, however, it’s important to read the fine print. In particular, you need to understand exactly what level of service is being guaranteed. You also need to know the consequences for the vendor if the guarantee is breached.

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7 Promotional Tactics to Show Off Your Data Center

Tim Wiedeman

December 13, 2021

Data centers play an increasingly vital role in the IT and technology management processes for organizations across industries. The ability to securely store your important business data in the cloud remotely, without the need to maintain your own servers, is undoubtedly appealing and has led to the rise of an industry that now surpassed $20 billion in global annual revenue .

But that growing market also means increased competition. Even a robust growth rate within in the industry is not keeping pace with the growing need for these services among organizations of all sizes.

The result: if you are looking to sell data center services to prospective clients, simply outlining the basic benefits of storing information remotely is no longer enough. In an increasingly competitive industry, differentiation becomes the key to building a sustainable, growing client base and securing high occupancy rates for your facility and servers.

That, in turn, means building a comprehensive marketing strategy for your data center, tailored to your exact target audience. While that plan should contain all the typical elements of a best-practice marketing strategy , one area deserves specific focus due to the unique nature of this industry: the tactics you use to show off your facility and services. Let’s dive into 7 of the best ways you can show off not just your data center, but the core benefits you can provide to potential clients.

1. Educate Clients On Your Website

For many clients, data centers tend to seem like a black box. They know their information needs to be protected, but are not sure how a server facility somewhere other than their business will help in that process.

That tends to be a challenge, but the right content strategy can turn it into an opportunity. Your website is the perfect place to educate potential clients not just about your own facility, but data centers in general:

• Share basic information about your facility, and what your clients can expect.
• Correct misconceptions many businesses hold about data centers, including security or reliability concerns.
• Reinforce the business case for working with a data center, including security, access speed, and flexibility.

All of this information can easily be shared on your website, and it doesn’t hurt to implement additional communications channels such as a blog with regular updates. A transparent communications plan focused around your website can become your promotional baseline and go a long way towards reassuring potential clients.

2. Build a Whitepaper or Industry Trend Report

Especially in the B2B realm, whitepapers can be vital means of promotion for marketers looking to build thought leadership and credibility; the latter of which being vital to any data center’s promotional efforts. According to one study, 71% of B2B buyers have used a whitepaper in the past 12 months to inform a purchasing decision.

The basic concept is simple: you create an in-depth report about the industry (in this case data management and storage) and place it behind a sign-up form. The report itself is free, but anyone reading it will need to provide their contact information and basic information about their business that you can use for further, more targeted promotional follow-ups.

That process, of course, only indirectly relates to showing off your data center. At the same time, it can be immensely successful in doing just that, because you are connecting your own expertise in your industry with your own facility. While whitepapers and trend reports on their own are not heavy on sales pitches, their transferred credibility to your own operations can be vital in building the trust of potential clients.

3. Run an Educational Webinar

Webinars play a similar role as whitepapers in B2B marketing strategy for your data center. They are designed to build credibility and attract potential leads, as free industry resources that only have a slight promotional tilt. And yet, between 5% and 20% of webinar attendees turn into buyers , thanks in large part to the credibility and familiarity gained in the course of a typical presentation.

Running a webinar is complex, but the potential payoff can make those efforts worth it. A few considerations for data centers include:

• Hosting a data security expert that can speak to benefits and current trends of data centers independently.
• Interviewing a current or past client on their data management practices related to using a data center.
• Creating a more interactive Q&A session in which potential clients can ask about anything they need to know related to partnering with a data center.

4. Create Case Studies of Current Clients

Of course, indirect ways to show off your data center, like creating a whitepaper or hosting a webinar, are not enough to succeed on their own. At their best, they need to be accompanied by more direct promotional means designed to draw your audience in and convince them of your core value proposition.

Case studies can play a central role in that effort. The concept is simple: find a current client who has worked with you for a while, and has tangible data management efforts to show for it. That might include any number of KPIs:

• Scalable data services to support growth
• Reliable uptime to reduce data management issues.
• Data redundancies to account for disaster recovery plans
• Interconnectivity between individual sites

Interview the client for specific quotes on how your data center has been able to accomplish these goals. Then, write a case study in a simple challenge>process>solution approach that you can present on your website, showing off the business case for working with you in a real-world scenario.

5. Produce Videos of the Facility

It’s time to get visual. While case studies can show the numbers behind the benefits of working with you, many clients will want (and need) to see your facility with their own eyes. One way to accommodate that need is through professionally produced videos that showcase the various parts of your data center.

These videos can come in a wide range of formats:

• Short tours of the facility’s core areas
• Interviews with facility personnel and supervisors
• Animated visualizations of the data center’s security measure

The mere visualization of these basic concepts can go a long way towards marketing your data center. Creating them in a video format also means that you can share them on various other promotional channels, from your website to social media and even via email with current leads.

6. Organize a Guided Site Visit

Of course, not everything about marketing your data center has to be virtual. In fact, even in the age of COVID-19, a physical visit can still go a long way towards convincing potential clients that storing their data with you makes the most sense for their business needs.

The visit should be well-organized, of course. That includes showing off not just the storage facilities, but additional amenities such as conference rooms, security features, and other areas potential clients might be interested in. It also helps to arrange meetings with technicians and security personnel to reassure visitors of the safety of your data center.

This visit, of course, needs to be guided by strict security principles on its own. But, when organized the right way, and promoted through the right channels, a physical tour can help especially high-profile clients find the reassurance they need to work with you and your data center.

7. Create a Virtual Tour of Your Data Center

Of course, even as business travel is beginning to recover from the early impacts of the global pandemic, most clients will still be wary of physical visits – and, just as importantly, may not travel across the country to visit a data center. How can you still convey the same information you would in a physical visit in this environment?

The answer: virtual tours . When built the right way, they’re a perfect combination of all of the above marketing tactics designed to show off your data center. They:

• Offer an education component of how data is handled and managed in the facility.
• Allow space for case studies of current clients and how you manage their data.
• Can be a more dynamic alternative to videos, and even house these videos as part of the larger experience.

In other words, virtual tours are, in many ways, the most comprehensive, visual, and engaging way to showcase your data center. See our case study with INAP and learn why they produced virtual tours for their data centers. Once built, you can promote them across all of your channels, from your website to email, social media, and more.

Ready to Build a Virtual Tour to Showcase Your Data Center?

You might have noticed the caveat in the above point. That’s because not all virtual tours are created equal. Some are optimized for specific industries, while others are just glorified and longer linear videos. To get it right, you need the right partner to build that tour.

That’s where Concept3D comes in. Our platform is well-equipped to handle immersive, engaging, and interactive virtual tours across industries, including data centers. Consider the tour we built in partnership with CyrusOne Chicago , showing off the 415,000-square foot space on almost 50 acres of land.

Your data center can benefit from a similar build. Ready to learn more? Contact us today to start the conversation.

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Will the Data Center Industry Grow More in ’24?

By Tudor Scolca

Data Centers Development In Focus Investment More National Trends

In this 2024 outlook report, experts weigh in on the prospects for this increasingly popular asset class.

Ryan Mallory believes that in 2024, forward-thinking leaders will diversify their footprints into new, regional markets, aiming to circumvent supply chain constraints of primary metros. Image courtesy of Flexential

Data centers have racked up another spectacular year. Despite a slowing economy and a business environment marked by uncertainty, the industry has seen strong fundamentals, with growth in primary markets continuing at a record pace. Demand is only increasing, fueled by the rapid proliferation of AI technology.

Several landmark moves made waves in 2023, and some of them will likely have a huge impact on the sector going forward. For example, Blackstone ‘s recent $7 billion joint venture with Digital Realty is set to deploy 500 megawatts across three primary markets over the next few years, while Amazon Web Services ‘ plans to invest $7.8 billion in Central Ohio is set to bring more data centers to the area over the next six years.

READ ALSO: How the Cost of Building Is Shaping Up for 2024

But despite developers keeping a strong pace of new projects throughout both primary and secondary markets, economic hurdles and other types of challenges remain on several key levels.

Large deployments are no longer overwhelmingly the realm of primary markets, as some of those have become saturated and constrained by either a lack of developable land or limited power capacity. This, in turn, has generated premium prices.

According to Cushman & Wakefield Head of Alternative Insights Jacob Albers, vacancy rates in all primary markets in North America are below 5 percent, with a few even falling below 1 percent—such as Northern Virginia . These record low figures will continue to push lease pricing , pressuring operators to examine secondary markets and outlying areas of established ones.

Power availability will drive growth

Jacob Albers thinks that data centers will continue to remain a niche sector with a high barrier to entry, due to the complexities of developing these facilities. Image courtesy of Cushman & Wakefield

Colton Brown, vice president of strategy and development at Aligned Data Centers , believes that market tier designations are becoming increasingly irrelevant, as there are individual campuses now that can deliver as much capacity as multiple Tier 2 markets combined. What will drive growth in these markets is power availability. As some primary data center areas, including Silicon Valley and Loudoun County, Va., continue to have issues with power, developers and operators will move on to new markets where these concerns don’t yet exist.

“Notably, it is a growing belief that most AI learning facilities will not have stringent latency requirements, enabling data center operators to evaluate sites hundreds of miles away from traditional cloud regions,” Albers told Commercial Property Executive. 

Tertiary markets and rural areas will likely see an increase in announcements for hyperscale builds. Record-setting power purchase agreements have been signed in midwestern and southern markets, which will probably continue through next year in other areas as well.

“Forward-thinking leaders will diversify their data center footprint into new, regional markets, aiming to further circumvent supply chain constraints and overcome the rising operational costs in Tier 1 cities,” Flexential COO Ryan Mallory expects.

Markets to watch in 2024 include Columbus, Ohio; Kansas City, Mo.; Omaha, Neb., Des Moines, Iowa; Reno, Nev. , along with metros in Arizona, Tennessee, The Carolinas and Georgia . What these regions have in common are growing and upcoming renewable energy plants. Power will be a crucial factor in 2024 and beyond.

EdgeCore’s upcoming 1.5 million-square-foot, 216-megawatt campus in Reno, Nev., is a project for which the developer secured power agreements with utility provider NV Energy. EdgeCore is targeting LEED certification for the campus. Rendering courtesy of EdgeCore Digital Infrastructure

Providers and developers will look to secure commitments for power as early as possible in the process.

“This is quite a change from a few years ago when land would be secured and pre-development steps engaged before a power commitment was negotiated,” Albers noticed.

A roadmap and commitment to sufficient power is a pre-condition of securing land now.  EdgeCore Chief Commercial Officer Clint Heiden agrees that securing power will be among the top issues that the data center sector will face.

“Moving forward, we are likely to see land acquisition practices begin by identifying areas with available power and then searching for developable land nearby,” Heiden told CPE.

The EdgeCore executive believes that how fast a project is brought to market will no longer be a bottleneck. Rather, the speed at which developers can secure power and equipment for the site and how they can manage supply chain delays will be more of a constraint going forward. Heiden anticipates these issues to continue to play out as a primary hurdle in 2024 and beyond, as data centers are constructed, retrofitted and expanded to meet modern density demands.

Leveraging AI will require updated infrastructure

Over the past decade, large land sites for data center campuses have become a common occurrence—sites ranging from 100 acres to more than 500 acres tied into developers’ strategy of mitigating land price fluctuations, as well as meeting hyperscale demand .

“The move toward creating more efficient, scalable data centers that can handle the enormous demand of AI and ML will continue to be a core theme in the foreseeable future,” Heiden told CPE. Image courtesy of EdgeCore Digital Infrastructure

Today, AI is triggering a paradigm shift in terms of infrastructure. While power availability will be vital, this new technology will have a huge impact on other aspects, as well.

“Everything else is or will be different—cooling systems, redundancy levels, latency and network requirements and more,” Brown said.

Vantage Data Centers Senior Vice President of Sales and Solutions Engineering Steve Conner told CPE that AI deployments can reach rack densities up to five times higher than traditional cloud computing, which leads to cooling requirements also becoming more complex. Increasing demand for high-density AI deployments has already prompted discussions around reconfiguring data center layouts to account for liquid cooling distribution units closer to the racks while delivering the space necessary to support the plumbing systems.

“The cooling technology itself likely won’t change too much, rather it comes down to a conversation about liquid versus air and the associated ratios,” Conner noted.

At first, there probably won’t be drastic changes with the technology itself. However, data center operators will likely make changes at the design and architecture specification level, to make sure their buildings can support this additional infrastructure.

Generally, AI, machine learning and high-performance computing will drive higher rack density requirements, which will range between 25 to 100 kW per rack—in the past, it was common to have densities of under 15 kW per rack. Working toward technologies that can balance the needed cooling with reducing environmental impact through recycling water usage and waste heat will also be a key issue going forward, Albers believes.

Sustainability-linked instruments will proliferate

Colton Brown pointed out that the push for efficiency is not unique to AI—from water efficiency to power, land and capital efficiency, all resources are finite and must be utilized in a sustainable way. Image courtesy of Aligned Data Centers

As the need for higher scale rises, so too will the focus on sustainable development and operation. Organizations will increase their focus on ESG managing and reporting , which will initially lead to higher Scope 2 and 3 emissions as these processes evolve, according to Mallory.

Flexential’s latest generations of data centers are all built with climate-optimized features, including power usage effectiveness of 1.25 and water usage effectiveness at zero, while their cooling infrastructure mitigate the company’s carbon footprint.

Overall, developers’ focus to positively change how the data center industry impacts the environment has generated multiple-faceted initiatives at all levels. As new facilities are being designed, owners are considering the environmental needs of the geography they are based in. In water-constrained markets, for example, utilizing closed-loop systems is a way to mitigate the use of this precious resource.

“Providers should continue to nurture the ecosystem between local communities, governments and power companies as the industry works to be more efficient and sustainable,” Heiden said.

READ ALSO: 2024 Forecast—More of the Same?

Those who want to bring modern data centers to the market need to strike a balance between debt financing and equity capital in order to be successful.

“Providers must be more intentional when determining the optimal capital structure, especially when meeting capacity demands driven by AI and hyperscalers, among other factors,” Heiden mentioned.

A solution to reaching this balance is green financing , which will continue to gain traction in 2024, specialists agree. Companies have begun using green bonds and sustainability-linked loans, along other similar financial instruments. Vantage, AirTrunk, Aligned, EdgeConnex and many others all utilized these methods a lot more in 2023.

Next year and beyond, the data center industry will likely continue its strong growth across all fundamentals, but a key aspect for all players going forward will be the collaboration with local utility providers and community groups to advance the sector’s sustainability goals.

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Omsk Oblast Gov – Omsk Waste Treatment Plant – Omsk

Unlock hidden opportunities in the Construction industry

Published: May 10, 2023 Report Code: GDCON398905-MP-L5

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• Report Overview

Methodology

Equip yourself with the essential tools needed to make informed and profitable decisions with our Omsk Oblast Gov – Omsk Waste Treatment Plant – Omsk report.

Note: This is an on-demand report that will be delivered upon request. The report will be delivered within 2 to 3 business days of the purchase, excluding weekends and holidays. Certain sections of the report may be removed or altered based on data availability and relevance.

Why choose our report?

• Unleash the full story: Dive deep into the Omsk Oblast Gov – Omsk Waste Treatment Plant – Omsk project and gain access to vital information such as its value, progress, and key dates. By building a complete picture, you stay one step ahead of the competition.
• Meet the influencers: Get a view of the key stakeholders involved in the Omsk Oblast Gov – Omsk Waste Treatment Plant – Omsk project. From developers and contractors to architects, this report introduces you to the key players with whom you can forge valuable connections and unlock exciting collaboration opportunities.
• Uncover new business opportunities: Are you in the business of supplying products or services related to the construction industry? This report is your guide to identifying lucrative opportunities within the Omsk Oblast Gov – Omsk Waste Treatment Plant – Omsk project, showcasing your offerings, and boosting your chances of securing valuable contracts.
• Turbocharge your business development: Time is precious, and we understand that. With this report in your hands, you can save valuable hours that would otherwise be spent tirelessly researching and prospecting. The comprehensive insights provided will expedite your new business development efforts, giving you a head start in seizing exciting opportunities.

What is included in the report?

Project name, value, location, stage, sector, announcement quarter, start quarter, end quarter, scope, background, description, key stakeholders.

Data in the Omsk Oblast Gov – Omsk Waste Treatment Plant – Omsk report has been gathered from tracking over 60,000 news, company and government sources, as well as primary research with direct contact with key project stakeholders.

Following wealth of information on Omsk Oblast Gov – Omsk Waste Treatment Plant – Omsk is covered in the scope of this report:

• Key Stakeholders

Reasons to Buy

• Save time developing new business opportunities

Key Players

Frequently asked questions.

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Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

Omsk Oblast Gov – Omsk Waste Treatment Plant – Omsk was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample report to help you:

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Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to help you understand the structure of the report you are buying

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GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

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