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Muqbil Ahmar

Technology Evangelist, avid blogger and enthusiast, and basically a storyteller at heart. With more than 10 years of experience in journalism, I have enjoyed my stints with other media like TV, magazines, and Web. When not surrounded by startup and tech stories, I like to dig for inspirational ones. I write on Cloud, Big Data, IoT, startups, SMEs, Enterprises, Technology, ERP, CRM, and everything under the sun—viewed from the prism of new era tech.

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Cloud Computing, the Most Disruptive IT Force, Fuels Data Center Boom in India and South-East Asia

Apart from the other benefits, data centers will help in the employment of trained people from other segments such as Big Data and Analytics, Software, telecommunications, network design, and business development.

Internet services giant Amazon launched its first set of datacenters in India. It said that it was spending “millions of dollars” in order to set up datacenters in India. “Data center will help accelerate growth,” says Shane Owenby, the managing director-APAC, Amazon Web Services (AWS). Microsoft has three datacenters, IBM has two. There are others such as Japan’s NTT that have data center operations here. According to reports, Chinese e-commerce company Alibaba is also planning a datacenter.

Growth of datacenters all over South-East Asia

Asia-Pacific has become a much sought after destination for setting up datacenters. According to a report by APAC Reach, a research company focused on helping expansion in the APAC region, there is an increase in European clients that are interested in making datacenter investments following the UK Brexit referendum.

“Cloud-first strategies are a foundation for staying relevant in this fast-paced world,” says Ed Anderson, the research vice president at international research firm Gartner, adding: “Market for Cloud services has grown to such extent that it is now a notable percentage of the total IT spending, helping to create new generation of start-ups and ‘born in the Cloud’ providers.”

IT vendors setting up infrastructure to aid cloud expansion

Chunghwa Telecom, Taiwan’s largest telecom company, opened its £309 million datacenter, outside the capital Taipei. Similarly, Deskera, a leading Cloud software provider, announced investing $ 50 million over three years to build a cloud datacenter in Singapore. The organization plans to convert the datacenter into the biggest software as a service (SaaS) center in the South-East Asia region.

“We want to invest in this data center to offer customers fast and reliable services and strengthen the IT ecosystem. Consequently, it will boost our abilities to support business expansions across multiple industries across the globe,” said a confident Deskera CEO Shashank Dixit.

Why is there a sudden rush to set up datacenters?

The rush is fuelled by software companies that are moving from premise-based technology to Cloud-based applications. What is happening is that IT companies are leaving traditional resources like software license purchases and direct servers and moving operations into the cloud. Therefore, they increasingly require reliable and fast-paced infrastructure. In fact, installing data centers is a step towards that objective, which will also support a company’s expansion plans.

“Cloud adoption is experiencing growth at an unprecedented speed. Therefore, it is critical that there exists a robust as well as a scalable infrastructure,” adds Shashank.

IT spends to equal $1 trillion either directly or indirectly due to cloud shift in 5 years: Gartner

According to a report by IT research firm Gartner, IT spends will exceed by over $1 trillion either directly or indirectly fuelled by the shift to cloud over the coming five years. This makes cloud computing the most disruptive force in IT spending since the initial days of the digital age. Besides cloud services replacing or complementing the existing IT systems, brand new applications and services are being developed that would run exclusively on the Cloud.

The report further goes on to say that IT spends which equaled $111 billion for cloud services will grow to as much as $216 billion by 2020. This shift translates into $1 trillion spread over the coming five years. This cloud shift has been the greatest in the business process as a service (BPaaS) segment, where the shift will equal $42 billion at the rate of 43 percent by 2020. The segment software as a service (SaaS) follows closely and has registered a shift of $36 billion in 2016 and is expected to grow at the rate of 37% by 2020.

Spin off technologies like Big Data and Analytics will get support

Apart from the other benefits, data centers will help in the employment of trained people from other segments such as Big Data and Analytics, Software, telecommunications, network design, and business development. These days Big Data is the cornerstone of every business intelligence strategy. It feeds on accumulation of data. A data center could help the growth of Big Data Applications using its own resources. Data centers can go a long way towards fuelling activity in the other segments of digital transformative technologies too. Plus, a company’s success today critically depends on smooth software operations for which datacenters are significant building blocks in the technical architecture. They also provide protection from other external influences and also reduce any chances of internal manipulation.

No wonder, the race for setting up datacenters will only keep getting hotter by each passing day.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house


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