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Is the Data Centre Disappearing?

Friday 14 September 2018

Numerous commentators have written obituaries for the enterprise data center. Oracle CEO Chris Hurd, for one, predicts 80% of corporate data centers will be gone by 2025 and is rushing to expand the company’s cloud capacity to vacuum up the expected demand. Gartner has been on record for some time with its forecast that by 2020, more compute power will be sold by IaaS and PaaS cloud providers than deployed into traditional data centers.

It’s true that corporate interest in owned data center assets has shifted; however, data centre investment still grew at 6.3% in 2017 and is expected to expand 3.7% in 2018, according to Gartner. And while the data center industry’s spending hit record levels last year, hybrid implementations remain the talk of tech town.

In fact, larger businesses find owning data centers to be less expensive than renting space. Forbes reports that while SMBs are retaining only about 50% of their data centers, for enterprises the figure is closer to 80%.

To succeed with the off-premises side of the equation, planning, oversight, and attentive “cloud sprawl management” will be required to avoid unexpected increases in costs. On-premises tasks, like IT hardware acquisition, lifecycle management, and predictive maintenance will also be on the “to do” list.

Attend the speaking session at 13:00 – 13:30 on Thursday 4th October at IP EXPO Europe to learn how Park Place Technologies can help your organisation with its strategic IT decisions regardless of its position in the infrastructure lifestyle. Can’t make the session? Stop by stand GG7 to speak with Park Place Technologies.

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