IT Scalability as a Competitive Advantage

The global pandemic waxes and wanes, but it has not slowed the massive digitization of data, often referred to as digital transformation, which is now challenging large companies and government organizations trying to implement new digital strategies. Since 2016, digital transformation phenomena have generated 90% of the world’s data, and this staggering growth shows no signs of slowing down.

Digital transformation is rapidly increasing the requirements for larger technology stacks to store, calculate, analyze and connect data. All of this requires more power, as evidenced by the Valuation report, which projects the global power data center market to grow 43% from $ 15 billion in 2020 to $ 21.5 billion by 2026.

This increase in power demand is commensurate with the increases in data center space and connectivity required to accommodate the expanding compute and storage environments in colocation data centers.

Bigger is better

As a result, the ability of an organization to scale, to easily add or subtract computing and storage resources, across different data centers and geographies, has become a significant competitive advantage.

For on-premises data centers, scaling requires buying more power and building more space, which is expensive, time-consuming, and difficult to manage. That’s why large companies and government organizations choose to move from their on-premises data centers to large, modern third-party data centers that offer flexible and scalable data platforms and can adapt to rapid changes in data growth.

According to an IDC survey, “72 percent of respondents indicated that their use of co-location will increase over the next 12 months” to accommodate a new normal that is taking shape for enterprise IT.

While most on-premises data centers are relatively small, the average multi-tenant data center occupies approximately 100,000 square feet of space. A handful of vendors manage large-scale facilities of more than a million square feet with ample power, robust connectivity and innovative service delivery platforms that use advanced technologies to optimize the digital infrastructure of their enterprise customers.

Enterprise digital infrastructure deployments are expanding and beginning to take on junior level hyperscale-as scalable space requirements, energy and sophisticated connectivity ecosystems in multiple data centers and in multiple markets.

QTS continues to see a significant increase in requests for proposals from companies across various verticals with rapidly increasing requirements. What used to be normal business requests for 250-500KW environments are now multi-megawatt, multi-site, multi-geography commitment requests.

As a result, fewer and fewer data center providers are able to adapt to growing business requirements for scalable space, power, and robust connectivity. They cannot compete for large enterprise deals because the requirements are too high, both for the data center’s ability to physically scale (power, space, connectivity) and its ability to provide data center services across multiple sites and geographies.

And while the total number of on-premises data centers may be declining as businesses consolidate into large multi-tenant data centers, overall data center growth forecasts are increasing. Gartner Forecasts End-user spending on global data center infrastructure in the US alone is projected to grow to $ 200 billion in 2021, up 6 percent from 2020.

New emerging creative requirements

As the size of your data center deployment and investment increases, selecting a data center vendor becomes a much more vetted process by stakeholders. As a result, today’s data center must demonstrate that it can enable a seamless business experience from content to end user in an ever-growing environment. The strategic business buyer recognizes that if it can grow beyond its initial implementation, it is not likely to be successful. Only by having a scalable data center platform can an organization be prepared for its inevitable data growth.

Ideal colocation data center providers provide a cloud-like experience when it comes to scalability. They have ample space, power, connectivity and advanced technologies that allow companies to focus on executing their digital strategy rather than trying to replicate the cost and experience advantages of a major data entry operator. The best vendors will collaborate to understand your digital strategy and help scale your environment accordingly, ensuring you always have enough resources without over-provisioning and wasting your IT budget.

The increasing need to scale is a direct result of digital transformation and massive data growth that continues to increase exponentially. QTS’s experience with large corporate, hyperscale, and government organizations has given us a unique perspective to address this new dynamic. We have large-scale data centers in major US markets, and we can meet the largest power and space requirements. We are also unique in our commitment to providing and growing ecosystems of connectivity in all of our buildings in all geographies. This results in a combination of large-scale data center infrastructure with access and connectivity to the world’s largest cloud providers, the world’s largest IP networks, Internet exchanges, fiber providers, various transport routes, and submarine cables.

For more information on scalable digital infrastructure, contact QTS data centers.

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Copyright © 2021 IDG Communications, Inc.

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