How Hyperscale Will Disrupt the Data Center Market

Sept. 5, 2017
Hyperscale will represent 47 percent of all installed data center servers by 2020. This is the first of three entries in a Data Center Frontier series that explores how hyperscale will disrupt the data center market.

This is the first of three entries in a Data Center Frontier series that explores how hyperscale will disrupt the data center market. This series, compiled in a complete guide, also covers selecting the right hyperscale partner and the elements of a hyperscale data center.

Download the full report.

Defining Hyperscale and Understanding Major Industry Trends

There are more users, complex applications and data points accessing your infrastructure. Now, new kinds of demands are requiring modern organizations to rethink their data center environment, delivery model, and how cloud architecture can be utilized even more.

A recent Deloitte Technology report projects that by the end of 2018, spending on IT-as-a-Service for data centers, software and services will be $547B. Deloitte Global predicts that procurement of IT technologies will accelerate in the next 2.5 years from $361B to $547B. At this pace, IT-as-a-Service will represent more than half of IT spending by the 2021/2022 timeframe. Furthermore, cloud computing continues to grow at rates much higher than IT spending generally. Growth in cloud services is being driven by new IT computing scenarios being deployed using cloud models, as well as the migration of traditional IT services to cloud service and data center provider alternatives.

This has given the rise to hyperscale data centers which are capable of delivering resources, agility, and improved business economics. Today, the development of large-scale, cloud-ready, hyperscale data centers is evident as their numbers will swell from 259 in number at the end of 2015 to 485 by 2020, according to Cisco’s report. They will represent 47 percent of all installed data center servers by 2020. As we look ahead, hyperscale cloud operators are increasingly dominating the cloud landscape.

In today’s ever-growing digital world, hyperscale data centers are basically a requirement for robust cloud, big data, or other types of larger distributed computing.

The need for data center partners who are capable of delivering rapid growth capabilities

Hyperscale data centers offer unique competitive advantages in their ability to support advanced delivery mechanisms and resource controls. This means supporting emerging business services revolving around cloud, big data, distributed computing, mobility, and so on.

[clickToTweet tweet=”Hyperscale will represent 47 percent of all installed data center servers by 2020. ” quote=”Hyperscale will represent 47 percent of all installed data center servers by 2020. “]

If you’re working on a cloud or big data solution which requires a data center ecosystem, make sure to understand the difference between traditional and hyperscale capabilities. A hyperscale data center partner will understand your technology requirements and business model and be able to help you solve for big data problems.

Back in the day, with simple apps, you would have a very small team working to solve an algorithm problem within an app whose same output could be used for everyone in a region. Now, you have problems that take mass amounts of data; you have a problem that effects everyone differently. Effectively, some of the data is only good for that moment in real time.

Hyperscale technologies take a new approach to data, resource, and service delivery. Take the Uber app as an example. It must update continuously with you and your driver’s position, it changes constantly, and is different for everyone. All of this requires huge amounts of data and highly scalable resources. Can your traditional data center keep up? Or, for your bigger cloud and data requirements —maybe it’s time to look for a data center which brings hyperscale capabilities.

The future of data center and why hyperscale will disrupt the market

Cisco recently pointed out that hyperscale data centers represent a large portion of overall data, traffic, and processing power in data centers. Traffic within hyperscale data centers will quintuple by 2020. Hyperscale data centers already account for 34% of total traffic within all data centers and will account for 53% by 2020. Hyperscale data centers will also represent 57% of all data stored in data centers and 68% of total data center processing power.

From server closets to large hyperscale deployments, data centers are at the crux of delivering IT services and providing storage, communications, and networking to the growing number of networked devices, users, and business processes in general. The future of the data center will revolve around growing trends and truly unique use-cases. However, one fact remains, we’ll continue to see more data, more cloud utilization, and a lot more requirements around data processing. Traditional data centers will certainly have their place. However, the rise of cloud and big data will also mean new business requirements and greater utilization of hyperscale systems. This is why it’s so critical to work with the right type of hyperscale partner.

This series on  hyperscale data centers will also cover the following topics:

  • Selecting the Right Hyperscale Partner
  • Elements of a Hyperscale Data Center

You can also download the complete report, “Data Center Frontier Special Report: How Hyperscale Will Disrupt the Data Center Market,” courtesy of QTS. 

About the Author

Bill Kleyman

Bill Kleyman is a veteran, enthusiastic technologist with experience in data center design, management and deployment. Bill is currently a freelance analyst, speaker, and author for some of our industry's leading publications.

Cabinets inside a data hall in an EdgeConneX data center facility. (Photo: EdgeConneX)

Supplying Clean Power: Utilities and Power Grids

Raj Chudgar, Chief Power Officer at EdgeConneX, explains how Carbon-Free Energy (CFE) can diversify the use of clean energy sources and power a carbon-free future for data centers...

White Papers

Get the full report

Sustainability in Data Center Site Selection

Aug. 31, 2022
This special report, courtesy of Nautilus Data Technologies, explores the role that sustainability should play in the development of deployment of data centers.