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Sustainability and interconnectedness at the core: data center trends 2023

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By Nikhil Rathi, CEO and Founder of Web Werks Data Centers

The pandemic was a watershed moment in the history of the world. Apart from changing the way we work, it also brought about a transformation in how businesses operate – the major change being an increased focus on sustainability as a core element of operations. In the data center space, there has been an increase in software automation and use of AI. Energy and water efficiency have emerged as the key to future success for data centers as the number of applications requiring storage grows. As per estimates, data centers are estimated to account for up to 3% of global electricity consumption today, and this figure is expected to rise to 4% by 2030. In this regard, here are some key trends in the data center space that we are likely to witness in the year ahead.

Nikhil Rathi

Wi-Fi 6 and 7 and 5G
Gartner predicts that by 2025, about 60% of enterprises will be using five or more wireless technologies concurrently. In the enterprise, we will see a spectrum of solutions such as 4G, 5G, LTE, WIFI 5, 6, 7, all of which will generate new data to be used in analytics. Low-power systems will harvest energy directly from the network meaning that the network will become a direct source of business value.

The Metaverse appears to be promising
Metaverse frameworks will maximise 5G networks to enable the application’s ultra-low latency features. In addition, approximately 40% of large organizations worldwide will increase revenue through a combined effect of Web3, augmented reality cloud, and digital twin-based projects. The Metaverse will collect massive amounts of data, that it will hold and act on almost instantly. While the Metaverse is built on distributed technology such as blockchain, the ability to ensure that data collected in one component is mirrored in the user’s experience in another is critical. As a result, research into the next generation of data engineering has emerged as a key trend in the Metaverse. To better equip the Metaverse, the data science approach should be simple, advanced, and effective in making sense of the new world.
Sustainability
Due to the impact of data centers on the environment, there is a growing need for environmentally friendly operations in this space. Customers, investors, and regulators have put the data center industry under pressure to make environmental changes. Companies are implementing and scaling IA to better manage employees and processes. Frameworks for process optimization and assessment provide actionable insights for making informed decisions, prioritising processes, and automating the production pipeline. Embracing automation in a sustainable manner will eventually aid in the promotion of increased efficiency and advancement.

Cloud hybrid
To get the best of both public and private clouds, more businesses are turning to hybrid cloud deployments. Apart from taking stock of their IT needs, mid-sized companies are realizing that they are paying a premium for public cloud features that are not required. As per the Global Bare Metal Cloud Service Market Outlook report, this market will grow at a CAGR of 31.8% 2023 and 2028. The factors driving this growth include demands for higher performance since the server is dedicated to a single user and offers superior control and security. A hybrid cloud architecture makes it possible for service providers to manage critical data and resources on secure private servers before they are moved to a public server for different processing requirements. To adopt a multi-cloud infrastructure, it is imperative to abandon potentially harmful business strategies including designing applications and processes solely around a single cloud platform. It is more efficient to run an application or workload in the cloud than on-premises. Companies will already have a thorough understanding of the new hybrid reality, allowing forward-thinking customers to benefit from their targeted skills and expertise right away. According to reports, 84% of mid-to-large businesses will have adopted a multi-cloud strategy by 2023, making it one of the year’s defining trends in cloud computing.

Automation
Unprecedented events in recent times have accelerated the use of automated processes and remote management. The diagnosis of network and infrastructure inefficiencies has already been automated. As businesses strive for higher productivity while using fewer human resources, data center automation will be critical in the future. Furthermore, automation enables workers to concentrate on more important tasks. Continuous automated testing essentially improves the quality of developed software and resolves all issues prior to its immediate release. A growing number of SMBs are seeking to adopt digital technologies, with process optimization being the most prominent use case. With more cost-effective automation options on the market, SMBs can now use them to cut costs, improve customer service, and boost competitiveness.

Hyperscale Data Centers
As data volumes grow, data centers are becoming exponentially scalable. Hyper-scale data centers are those that can quickly scale up to meet rising demand. Businesses in hyper-scale data centers can replace parts of the programme rather than the entire server, as is the traditional method. This not only reduces costs but also downtime. Users will inevitably spend more time using apps and websites as they pack in more features and functionality, period especially as the average number of apps a user downloads gradually decreases. According to reports, users will spend up to 88% of their time this year on mobile platforms utilising their favoured apps. The more time individuals spend digitally, the more the servers and low-latency connection options telcos will require. Hyperscale data centers would provide the scale and connectivity required to keep up with rising usage.

Infrastructure-as-a-Service (IaaS)
Even in 2023, customers will look for ways to outsource their infrastructure needs. IaaS will increase in popularity. As per a Gartner report, there will be a 29.8% growth of IaaS by 2023, making it the “highest end-user spending growth.” The managed data center services can help build a data center that makes sense for business. The data center infrastructure has now become critical to driving application performance for most businesses. No matter what strategy businesses adopt to deploy their IT resources (physical or virtual), the needs for performance, security, and scalability will remain paramount. By colocating within world-class interconnection data centers they can get near-instant access to private, high-speed, low-latency connections, and on-demand access to physical as well as virtual resources wherever they are. As attitudes towards data and technology evolve, we predict that these key data center trends of 2023 will shape the future of data centers.

In Conclusion
The Indian data center will act as a backbone, enabling the country to establish itself as a global hub. The digital revolution and new technology are advancing quickly and have been embraced in India’s metropolitan regions. Our booming economy and global economic development outperform those of other Asian countries. The positive result of enabling data centers in India is trillion-dollar digital economy growth, as well as new areas such as logistics, job and skill market, and e-governance using advanced technologies. The need of the hour is for the regulatory and legal framework to keep up with new developments. This will ensure the smooth adoption of new technologies as well as the protection of state and consumer interests.

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