Geminare Blog

Monday, Feb 03, 2014

The Disappearing Data Center

By Joshua Geist, CEO Geminare
In case you haven’t noticed, chances are that lately there are less blinking lights, fewer fans and less server hardware sitting humming away within your corporate data center.  It only takes a quick read through IBM’s or HP’s earnings to uncover the fact that enterprise organizations are not investing in as much gear as they have in the past.  In fact, even as the traditional hardware giants move towards Cloud-base services, InfoWorld’s David Linthicum predicted in December 2013 that “for every $1 of cloud revenue they book, they may lose $2 in traditional hardware and software business.”
Are the CIO’s reducing the overall data footprint?  Quite the opposite, in fact. A recent report from market research firm IDC forecasts the data market growing from $3.2b in 2010 to $16.9b in 2015. [CIO Insight report].
Do CTO’s have less to spend on technology?  Not the case, with Gartner reporting that CIO IT budgets were anticipated to be essentially flat for 2012.
Why then are the data centers going dark?  … The Cloud.
As server counts grow, data storage skyrockets and user expectations and demands increase. At the same time, IT groups within organizations are finding the flexibility of the Cloud to be a huge boon for everything from data storage to near on-demand, limitless resources and how they can service their internal user base.  In fact, they are adopting Cloud infrastructure so fast that Gartner is predicting that almost 50% of Enterprises will be using a Cloud or hybrid Cloud by 2017.
So why highlight something so obvious, something that most businesses have already realized and in fact are likely already engaged in?  Because inside your server room, when the blinking lights turn off and fans spin down, so does your disaster recovery plan.
Recovery as a Service or RaaS to the rescue, with a burgeoning market expected to reach $5.7 Billion with predicted growth rates of over 54% CAGR until 2018 [MarketsandMarkets].  RaaS is the Cloud-based Disaster Recovery and Business Continuity capability that replaces the tape drives, second servers and second data center locations that once were the norm for enterprise organizations looking to protect their information technology.
As companies adopt the Cloud for production infrastructure hosting they too must decide how they are going to transition their current DR plan to a Cloud model. And to-date, they have overwhelmingly selected Service Providers that have mature, robust and proven RaaS programs to move forward and partner with.
The Cloud represents one of the most disruptive changes in the technology ecosystem and organizations of all sizes are adopting Cloud-based models for both production hosting as well as disaster recovery capabilities.  RaaS represents the companion that went missing when the server room went dark … and the ability to keep the lights on long after the last IT employee went home.

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