Growing threats to security, new data protection regulations, and unexpected disruptions have increased businesses’ demands for reliable infrastructure. As a result, the adoption of cloud has grown. It offers competitive advantages such as cost savings, business efficiencies, unprecedented security and high availability options.
Gartner predicts that the global public cloud revenue will grow to $278bn by 2021. This indicates a $102bn growth from 2018. As cloud adoption continues to expand, traditional data centres have started to face a number of challenges:
1. Customer workloads are moved away by large public clouds, hosted in dedicated cloud provider facilities.
Large public clouds are increasingly using their own data centres or select large global providers. As a result, traditional data centres are facing high customer churn rates. At the same time, it is becoming harder to win new business.
2. Incremental revenue potential is very limited (enterprises choose cloud instead of colocation).
With enterprises choosing the cloud, data centres are losing the ability to gain incremental revenue. Traditional data centres are not able to connect legacy and cloud environments.
3. Data centres are losing direct contact with end users due to the disintermediation.
Public clouds consolidate computing deployments by providing customer services and consultations to their clients. This leads to data centres losing direct contract with end users through disintermediation.
The death of the Data Centre?
Before the cloud became the norm, companies built their own data centres. This meant that companies had to continuously invest heavily to keep their data centres operational. In addition, companies needed to provide enough capacity to meet growing business demands.
As the cloud has proven to be a secure and reliable alternative to the ownership and operation of a data centre, more and more companies are migrating from their own on-premises data centres to public cloud-based ones. According to Gartner, 80% of businesses will close down their traditional data centres by 2025. But does this mean that data centres are going to die?
New Data Centre trends
The answer to the question is that data centres are not going anywhere. In fact they are more needed than ever. Whether companies move their workloads to a private or public cloud, their data is still hosted in data centre facilities. Data centres are just going to evolve from their traditional role. In order for traditional facilities to develop, it is important that they become more cost-effective, efficient, flexible and scale faster.
One way with which data centres responded to the market’s changing needs is the rise of the colocation centres. Colocation facilities are data centres that provide equipment, space and bandwidth for companies to rent providing certain flexibility to the companies.
Another option that has gained popularity is the hybrid cloud model, which combines the features of the private and public model. The hybrid cloud model is favored by many companies because they prefer to have a choice to run the applications that are core to their business in-house, and run others on a public cloud without having to lose control on any of the data.
But is there another way to answer to the challenges that came with the downfall of the traditional data centre?
Cloud-as-a-Service: a fully managed drop in cloud solution
In order to turn those challenges into an opportunity, CloudSigma has launched an innovative solution called Cloud-as-a-Service (CaaS). The CaaS model enables data centres, telecommunications or IT service providers to offer a high quality public cloud service alongside their existing products. The CaaS operational and commercial model is founded on a collaboration between CloudSigma and the data centre partner.
CloudSigma’s solution offers a unique fully managed public cloud node as part of our global cloud network. CaaS partners benefit from a zero execution risk and our high service quality cloud services solution. This allows data centres to focus on the expansion of their market reach and offering of newly integrated value added services.
“I’d highly recommend the Cloud-as-a-Service offering of CloudSigma to any local data centre provider who wants to differentiate themselves from other “off-the-shelf” cloud providers. With an international cloud provider like CloudSigma by our side, we are in a very strong position to succeed in the cloud space.” Paul Arch, CEO and founder @ DC West.
By combining the strengths of a data centre and a cloud provider, the CaaS model brings a supreme cloud solution to end customers, while taking advantage of the expertise and market insights of both parties.
As we are looking into the future of both data centres and cloud computing, we are confident that turning traditions into disruption will be dominating the market. Our CaaS model, based on a mutually beneficial partnership is an example of a market disruption that will continue to evolve.
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