The datacentre industry has been undergoing transformation. The global pandemic has delivered a whole new wave of disruption. Organisations are under increasing pressure to cut costs. Also, the ongoing hardware supply chain issues are impacting both existing datacentres and new builds. The global semiconductor shortage could stretch to 2023.
Gartner predicts that, 80% of enterprises will shut down their traditional centres by 2025. The shift in working patterns over the last two years has prompted organisations to embrace cloud-enabled solutions. This will be including data management. Cloud-based services offer a sustainable, long-term solution. Research from Information Technology Intelligence Corp (ITIC) reveals that 44% of organisations report that a single hour of server downtime now costs from $1 million to over $5 million. The outages not only have financial implications but can lead to reputational damage in the case of data breaches. Businesses must consider the stability of their on-premises datacentres. According to IDC research, server performance erodes at an annual average of 14%. The performance has diminished by 40%.
Moving to the cloud enables businesses to transition from extended disaster recovery times to true business continuity. Organisations will no longer have to worry about their data resiliency. This is with the cloud provider supporting data replication and managing the storage and security of those backups. Organisations must keep pace with change, and that involves meeting the demands of a hybrid workforce. A recent HP Wolf Security Rebellions & Rejections report reveals that over three-quarters (76%) of IT teams admit security took a backseat to business continuity. This is during the pandemic. The flexible working model is here to stay, and businesses must work out how to prioritise security.
Reduced reliance on in-house datacentres can boost company-wide agility and innovation. Cloud-based organisations also have more freedom for scalability, automatically adjusting data storage capabilities. So that they can meet demand and avoid over provisioning at peak times. Another key driver for businesses to reduce their datacentre footprint is minimising environmental impact. As it stands, datacentre power consumption could devour 20% of UK generation in the next few years. The real estate required to house and store individual on-premises systems. And, that has a significant impact on a company’s electricity usage.
Mass-migration will ultimately lead to a huge reduction in emissions and e-waste. This is with organisations paying for the exact amount of processing power they need. And modern cloud infrastructures also offer increased transparency. Demonstrating ESG credentials is becoming increasingly important in appealing to key stakeholders. The investors are using climate change markers to evaluate non-financial performance. They are striving to fulfil environmental commitments is not only an ethical decision, but a profitable one. The usage of cloud organisations can leverage the sustainability capability of the hyperscale’s carbon neutral strategies. The transparency of consumption is also given by the clouds.
Some organisations are reluctant to make the move from on-premises infrastructure. Migrating to cloud puts companies’ datacentre infrastructure in the hands of dedicated professionals. There should be a good handle on the desired outcomes and the data needed to formulate a strategy for a sustainable transition. Also, they must ensure that they have the required cloud literacy to implement that strategy. This can be a daunting task but, with a robust plan and the right partner, businesses can modernise at the pace that’s right for them. This is to ensure that the expected benefits of cloud are fully realised.