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    FEATURED STORY OF THE WEEK

    Hyperscale Data Centers: A Strategic Look at Their Evolution

    Written by :
    Team Uvation
    | 7 minute read
    |September 27, 2023 |
    Category : Datacenter
    Hyperscale Data Centers: A Strategic Look at Their Evolution

    Hyperscale data centers have become the lifeblood of today’s digital-centric economy. These powerful computing facilities are essential for businesses seeking to manage the large sums of data they generate, capture, process, and analyze in our interconnected economies.

     

    Now, the number of hyperscale data centers is rapidly growing. According to McKinsey, venture capitalist and other data center deals reached $48 billion in value in 2021; an increase from $34 billion in 2020. These deals are growing more common as hyperscalers become more sustainable, more accessible to developing global economies, and easier to implement for companies without their own data center facilities.

     

    This article will delve into the transformative role of hyperscale data centers, their benefits, and the necessary aspects of their strategic implementation while addressing the potential challenges and solutions to harnessing their full potential.

     

    Defining Hyperscale Data Centers

     

    Hyperscale data centers are expansive, state-of-the-art facilities optimized to handle massive data workloads and storage needs. The term “hyperscale” refers to the capability of an architecture to scale correspondingly as increased demand is added to the system.

     

    These data centers are characterized by their vast size, often occupying hundreds of thousands or even millions of square feet. They house thousands of servers, storage systems, and high-speed networking connections, rapidly delivering data and services to millions of users simultaneously.

     

    This allows businesses to expand their infrastructure as their data needs grow, without investing in new facilities or undergoing costly renovations. “There are emerging data warehousing providers leveraging breakthroughs in scale and performance to take on more tasks at an affordable cost than previously feasible, such as in data integration,” as Forbes describes.

     

    Their unprecedented scale and efficiency are not only driving operational performance but also providing a platform for innovative services and applications. Companies leveraging hyperscale data centers can maintain a competitive edge, adapt to market dynamics, and respond to the growing demands of customers.

     

    Hyperscale Data Center Approaches: Co-Location and Others

     

    There are multiple approaches to the hyperscale model. One prevalent approach to hyperscale is co-location, where businesses rent space within a data center owned by a third party to house their servers and other hardware. This approach enables businesses to benefit from the state-of-the-art facilities and networking capabilities of a hyperscale data center without bearing the hefty capital costs of building their own. 

     

    Most importantly, the co-location model offers scalability and flexibility, allowing businesses to easily expand or contract their data capabilities in response to demand.

     

    In contrast, other companies opt for the wholesale or build-to-suit model, whereby businesses purchase or build and then manage their own hyperscale data centers. This approach offers greater control over the data center’s design, operation, and security, making it a suitable choice for companies with very specific, often expansive, data needs. However, this comes with significant upfront costs and requires a high level of technical expertise to build and manage.

     

    In deciding between these approaches, businesses must consider their specific data requirements, budget, technical expertise, and strategic goals. The choice ultimately depends on the unique needs and circumstances of the business.

     

    Hyperscale Data Centers and the Rise of Cloud-Native Software

     

    Contributing to the meteoric growth of hyperscale data center usage is the growing popularity of cloud-native software in business solutions, which hyperscale approaches readily support. As suggested by its name, “cloud-native” software are business applications and other tools designed specifically for cloud infrastructure.

     

    This name distinguishes it from other, “cloud-based” software applications. “The initial cloud adoptions were lift-and-shift efforts, essentially shuttering an on-premises data center for a much, much bigger one in a hyperscale cloud provider,” says Forrester. “Cloud-native computing radically changes that picture [where] the term ‘cloud native’ can refer to any technology specific to the cloud.”

     

    As this trend continues to unfold, business leaders are turning to hyperscale environments to facilitate all their future software investments and business ambitions. In 2023, Gartner recommends that IT and operations leaders focus on “building cloud-native infrastructure within the data center; migrating workloads from owned facilities to co-location facilities or the edge; or embracing as-a-service models for physical infrastructure.”

     

    Spotlight On Hyperscale Industry Changes

     

    Now, hyperscale data center business models are transforming in a holistic way alongside other industries future-proofing their business models against future challenges. Perhaps the greatest change in this space is hyperscalers’ increased focus on sustainability.

     

    “A hyperscaler’s data center can use as much power as 80,000 households do,” says McKinsey, especially in terms of major players like Amazon Web Services and Google Cloud. “The use of renewable energy is a critical component of the hyperscalers’ strategies, [and many] hyperscalers are starting to fund the building of renewable-energy plants in the face of soaring prices caused by supply shortages.”

     

    As the hyperscale data center industry itself continues to scale, entrepreneurs and advocates for developing nations are exploring opportunities to bring its value to emerging economies. The hyperscale business model is far-reaching by design, hence there are dozens of opportunities to connect small and growing businesses on distant shores.

     

    “The potential benefits of cloud computing to developing areas are immense,” said Forbes in March 2023. “The use of modern technology can bolster local businesses, thus supporting the economy and business growth.”

     

    In these ways, the hyperscale industry is a progressive contributor to the global economy and to limiting its environmental impact. For businesses in both developed and developing nations, hyperscale data center technologies and applications will continue to open new doors of growth for those who can capitalize on their capabilities effectively.

     

    What to Look For in a Hyperscale Data Center Partner

     

    Companies who wish to partner with a hyperscale data center solution provider should look for a few key attributes to ensure they are getting the most out of their investment. Here are three areas where potential partners can either exceed expectations or fall short, and how to identify which is the right choice for you.

     

    1. Scalability

     

    A hyperscale data center should be able to easily scale up or down as your business needs change. This is a standard for these business models, but you must also ensure they do so in a cost-effective way. This scalability ensures that you are only paying for what you need and can quickly adapt to changing market demands. Look for a provider with a track record of seamless scalability and the ability to offer flexible solutions tailored to your business.

     

    2. Security

     

    With sensitive business and customer data at stake, security is a top priority for any data center partnership. A hyperscale data center should have state-of-the-art security measures in place, including physical security, network security, and disaster recovery protocols. Ask about their security certifications and protocols to ensure the safety of your data. Generally, you should ensure your security is better than it would be with an on-premise solution.

     

    3. Reliability

     

    Downtime can be costly for businesses, so it is crucial to partner with a hyperscale data center that has a strong track record of reliability. Look for providers with redundant infrastructure and power backups, as well as a solid disaster recovery plan in case of unforeseen events. Additionally, ask about their uptime guarantees and performance history to ensure you are getting the most reliable service.

     

    Find Your Way Forward

     

    Hyperscale data centers have revolutionized the way businesses operate, offering scalability, flexibility, and cost savings in a rapidly changing digital landscape. As cloud-native software continues to grow in popularity, hyperscale environments will become increasingly integral to business operations.

     

    But companies must consider their specific needs when exploring hyperscale data center solutions. There are bound to be continued innovations in this area; so “don’t let ‘good enough’ systems keep you from enabling innovation,” as Forbes described in June 2023. Understanding how your hyperscale data center partner is evolving can be just as important as understanding what they can offer you today.

     

    Choose Uvation as Your Hyperscale Solutions Partner

     

    Uvation is a leading provider of technology solutions and consulting, helping the world’s leading companies with their hyperscale data center and other software selection and integration needs. 

    Contact us to learn how we can help you on your continued journey with cloud-native and other solutions.

     

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