Data Center and Cloud Spending Set to Increase

27 Oct 2014 by Cloud

"Workloads and user needs are becoming more complex across organizations, which has many turning to data center services to address these demands. Data center and cloud solutions are becoming so essential that spending is set to increase significantly over the next few years. Many of the technology industry's heavy hitters are also planning to expand their data center usage and increase their investment in their facilities to ensure that they get the best uptime and service delivery possible. As overhead operating costs rise, the required funding that will address these expenses and facility advancements will be significant to ensure that organizations will function under optimal conditions.

Overall spending on the rise
As more industries get a grip on what the cloud has to offer, they are also discovering how to use data center services to support a cloud environment and their other needs. This trend is causing a massive increase in market growth. According to a recent report by the Telecommunications Industry Association, there will be a 50 percent growth in spending for data center construction and cloud servicesthrough 2019. Within the next two years, data center construction will hit $29.7 billion, and cloud services are expected to be valued at $107 billion.

These significant developments are the direct effect of the rise of the Internet of Things and data needs. As organizations have more information to manage from devices and applications, they will increasingly turn to data center services to handle these workloads.

""Data is fueling unprecedented growth and technological change, and it's clear from our report that this trend is not ending anytime soon,"" TIA President Grant Seiffert commented. ""At the same time, the Internet of Things and continued smartphone demand will exponentially expand the amount of data available. Our research makes it clear that it's all about data - building the infrastructure to manage, store and protect it.""

Google boosts its data center investment
Large technology organizations are increasingly looking to improve their services and customer support. For this reason, Google isplanning to funnel $733 million into their new data center in the Netherlands, according to CNET. This facility will be the fourth ""hyper-efficient"" data center that Google has launched, but also marks another significant investment in the European market. The money put into the data center will be leveraged to make the facility more environmentally-friendly and more efficient than traditional setups.

""The new Dutch data center will benefit from the latest designs in cooling and electrical technology,"" Google's head of data center community relations for Europe William Echikson wrote on the company's blog. ""It will be free-cooled - taking advantage of natural assets like cool air and grey water to keep our servers cool. Our data centers use 50 percent less energy than a typical datacenter - and our intention is to run this new facility on renewable energy.""

Amazon puts money on Germany
Amazon has become a titan for both e-commerce and Web services, but these both require capable data center solutions for complete support. In order to meet growing cloud interest in Europe, the organization has established plans to open a massive data operation in Frankfurt, Germany. While details about this facility have largely been undisclosed, recent documents have emerged that show Amazon'sinvestment of $1.1 billion in the facility, according to The Seattle Times. This locality will enable German users to use AWS more meaningfully, as there are policies preventing data to be hosted outside of German soil. The investment in the area will meet more user needs and better support the European demand for cloud services.

""Amazon clearly intends to open new regions as cloud computing continues to grow, and companies seek to keep data within country borders,"" The Seattle Times stated. ""The Frankfurt region will be spread across two different data centers in the area. AWS builds multiple locations within regions that operate independently. That protects regions against massive failures that might otherwise threaten to shut the entire operation down.""

Spending shows increasing interest
As companies increasingly realize what the cloud and data center capabilities are able to achieve, spending in these areas will continue to rise. Data center operators must be on top of their game for these needs and actively seek to incorporate best practices for optimal performance."

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