Data centers have long been the backbone of digital operations. However, as technology advances and businesses increasingly shift toward cloud-based solutions, data centers are finding their very existence threatened.
Jake Brander, founder of Brander Group, a leading IT consultancy, shares his insights on how data centers are evolving and the strategies businesses can adopt to adapt to this transformation.
The Consolidation of Data Centers
Data center consolidation has gained momentum in recent years, driven by the desire to optimize IT infrastructure and reduce costs. As companies seek the next evolution in data handling, many are turning to cloud-based solutions and colocation services. This, unfortunately, has led to a decrease in the number of traditional, on-premises data centers.
"We're seeing a clear trend where only large or highly specialized data centers are surviving," says Jake Brander. "Many companies are instead turning to cloud services for their inherent advantages in scalability and flexibility. This doesn't render data centers obsolete—it simply redefines their role in the tech ecosystem."
This change is evident in the numbers. According to a report by Gartner, the worldwide public cloud services market grew by 17.5% in 2022, reaching $482 billion. This growth is attributed to the increasing adoption of cloud-based solutions across various industries.
As a result, the widespread consolidation of data centers is expected to continue, leading to the subsumption of smaller, less specialized data centers. This follows a similar trend to the IPv4 asset market, of which Brander Group's presence can also be found by way of their IPv4 Connect marketplace.
Navigating the Complexities: Brander Group at Work
With such significant changes being made in the data sphere, companies need expert guidance to steer them clear of any pitfalls. Brander Group is well-positioned to assist businesses in this regard, as its team of experts acts to consult, facilitate, and optimize clients' strategies to handle digital transformation.
"We've been closely connected to the data center industry from the start," Brander says. "Whether you're a data center looking to adapt or a business seeking cutting-edge services, Brander Group can guide you every step of the way."
Brander Group offers various data center-related services, including colocation services, cloud deployments, network security, IPv4 asset brokerage, and global connectivity support. With over 600 global service providers under it, Brander Group provides clients with the best solutions to service their needs.
The Future of Data Centers: Adaptation
Despite the trend toward consolidation, data centers are an immovable fixture of modern technological infrastructure. However, the nature of these facilities is likely to change in alignment with the market itself.
"We expect to see a rise in edge computing, where data processing occurs closer to the source of data generation. This will enable faster response times and reduced latency," states Jake Brander.
According to a report by MarketsandMarkets, the global edge computing market is projected to grow from $3.6 billion in 2020 to $15.7 billion by 2025 at a Compound Annual Growth Rate (CAGR) of 34.1%.
This growth is unprecedented, driven by the increasing demand for real-time data processing, the proliferation of IoT devices, and the need for low-latency applications.
With its deep connections within the industry and vendor-neutral methodology, Brander Group remains a key player in the world of data centers and cloud computing. As Brander himself appropriately puts it, "Data centers aren't going anywhere. The game may be different, but the same pieces are still at play. Wherever this change takes us, Brander Group is there to help guide our global clients."
