How Data Centers Are Powering The Digital Economy

By Sanjay Motwani, Vice President- Asia Pacific, Raritan - A Brand of Legrand

Sanjay Motwani, Vice President- Asia Pacific, Raritan - A Brand of LegrandOn July 27, 2018, the Justice Srikrishna Committee released a draft Bill setting the framework for India’s first comprehensive law on privacy and data protection. The recommendations, which came after a year India recognized privacy as a fundamental right granted by the Constitution, has the potential to change the data center ecosystem dramatically as it is the latest in a series of proposals that seek to spur data localization in the country. As per the proposed data protection law, local data storage requirements for digital payments and e-commerce sectors are also being planned. “Due to increasing requirements of data hosting, India would need rapid establishment of data centers,” the report said.

As global players identify India as a high-growth market and place bets on the economy, the most recent case being of Berkshire Hathaway CEO Warren Buffett’s interest in the digital payment company PayTM, global businesses will find it difficult to ignore the fact that India is a fast growing market for data center services.

Most companies store their data on cloud servers outside the country. But recently, there has been a huge trend of companies exploring the Indian data center market. International biggies such as Microsoft, IBM, Amazon and Google have already set up local data centers in the country. Chinese phone manufacturer Xiaomi is migrating its Indian data to the country, while enterprise software company VMware also expressed its willingness to migrate data to India. Zoho, which has data centers in US and Europe, plans to open data centers in Mumbai and Chennai. Flipkart initially relied on data centers in Canada for its initial operations, but has set up data centers in Mumbai and Chennai for its operations. Hence, there is a huge untapped potential in the Indian market waiting to be tapped.

“Organizations require an intelligent infrastructure portfolio with easy-to-use, responsive tools that improve operations and support next-generation data center platforms”

Gartner said that data localization will increase costs for public cloud companies as they might need to expand data center capacity to fit customer data currently hosted outside India besides dealing with infrastructure and connectivity challenges such as high power costs and the need to get various permits. Apart from the challenges, the companies will also face the enormous task of processing the huge amount of data-Digital data in India was around 40,000 petabytes in 2010 and this number is projected to shoot up to 2.3 million petabytes by 2020, twice as fast as the worldwide rate. India is on track to becoming a digital power by 2022. As data centers will bear the burden of digital transformation initiatives in the coming years, addressing these challenges through investment in smarter data center resources will be critical to success.

Organizations of all sizes will need to invest in agile data center solutions that are scalable, flexible and adhere to the highest global standards of security. Keeping operational costs and efficiencies optimal will be critical as data centers strategies evolve and grow. Global leaders in data center solutions offer data center management solutions that are proven to improve operational efficiencies, uptime and power costs. In order to upscale their edge capacity, organizations can choose from hyperscale cloud and large colocation facilities that are located close to the point of data generation or opt for micro data centers, which can accommodate higher speed demands and edge computing. In India, major demand for Hybrid Cloud is coming from the Small and Medium Enterprises (SME) and Small and Medium Business (SMB) sectors.

We need solutions that offer a centralized Cloud Management Solution that provides out-of-band remote access of critical IT resources from anywhere. This solution operates in private and in hybrid clouds and provides IT administrators with the tools necessary to visualize assets, troubleshoot issues, restore operations and ensure availability anytime and anywhere. It also gives cloud providers management capabilities across their network infrastructure in Public Cloud.

Organizations require an intelligent infrastructure portfolio with easy-to-use, responsive tools that improve operations and support next-generation data center platforms. These products provide full life-cycle cabinet management – including delivering real-time insights into operations, issuing early warnings of potential issues, providing secure access and control capabilities to make repairs and improvements from anywhere, and distributing power optimally and reliably to IT equipment. Intelligent power distribution units (iPDUs) and KVM-over-IP solutions enable automatic and remote control of the data center. Besides distributing power efficiently and reliably, iPDUs can provide the ability to remotely power down a server and analyze data on data centers’ power capacity. This is significant in a country like India, where power outages are common. There is also software like PowerIQ that can closely monitor and efficiently utilize existing data center power infrastructure. KVMover-IP has lower Total Cost of Ownership (TCO), multi-vendor support, enhanced security and flexible user management, among other cost savings.

According to a special study by global research firm IDC and Raritan, the global leader in providing intelligent data center management and rack power distribution solutions, investment in smarter data center resources is integral to delivering IT service at the speed that business needs to innovate.

In conclusion, India is becoming an attractive destination for data centers business, with the market likely to reach USD 7 billion by 2020. The future is here!

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