Trends in Datacenter Services Infrastructure
Trends in Datacenter Services Infrastructure
EXECUTIVE OVERVIEW
D EC 20 1 8
2019 Trends in
Datacenter Services &
Infrastructure
Kelly Morgan, Research Vice President, Services
Dan Thompson, Research Director - MTDC
Daniel Bizo, Senior Analyst, Datacenters and Critical Infrastructure
Penny Jones, Research Director - MTDC & Managed Services
Datacenters are under pressure: They must be the right size, in the right location,
with the right connectivity. Despite efforts to move redundancy into applications,
datacenter infrastructure is expected to function 24/7, as efficiently as possible. The
largest customers are pushing for innovation and faster builds. Datacenter vendors
and service providers are responding by becoming more flexible and adopting
new technologies, but more change – particularly from the growth of IoT and 5G
deployments – will be required for the industry in the years ahead.
Key Findings
• Cloud providers will continue to drive demand for large datacenters in low-cost locations, as well as
for network-dense connectivity facilities. However, the rise of 5G and IoT will also push demand for
smaller edge datacenter facilities that require different business models and automation. Datacenter
providers will need to target their customers carefully and understand exactly what qualities and
services customers seek.
• Data analytics, cloud, prefabrication, multi-site resiliency and open-source architectures are
being applied to datacenters. This is creating intelligent, connected and purpose-built critical
infrastructure that is responding more rapidly to pressure from customers and technological change.
• Datacenter operators will need to plan for environmental change: warmer temperatures outside,
changes in water availability, customer and regulatory requirements around power sources,
and greater natural disaster risk. Engineering based on historical worst-case climatic conditions
might not be enough in the future. Customers will increasingly ask for a broader vision around
environmental responsibility.
Executive Summary
Introduction
Things are changing quickly for the datacenter industry. Cloud adoption and the rise of hyperscale IT
and cloud firms has driven demand, particularly for large-scale space, but also for innovation. From new
chips to Open Compute to liquid cooling to solid-state storage, large IT firms have been pushing for new
IT infrastructure approaches, often in collaboration with vendors. Changes in systems architecture and
“Providers that can
IT components also impact datacenter design. Innovations that combine and optimize IT at the physical,
offer automation,
logical and virtual levels are driving new opportunities – and new challenges – for operators and owners
scalability and
of datacenters and critical infrastructure as well as for their suppliers.
flexibility as well as
customization will Datacenter providers are increasingly building in locations and at a scale that will appeal to large IT
stand out from the and cloud firms. However, there will likely also be demand in the future for smaller, edge datacenters
crowd in the short related to 5G and IoT deployments. This could lead to the growth of facilities that are not ‘traditional’
term while possibly datacenters. Some, such as smart buildings and factories, may support megawatts of IT capacity,
being the only ones be heavily connected, and require multiple power distribution and storage systems for energy
to survive in the efficiency and availability. Others, such as distributed micro-datacenters (e.g., at cell towers), may
long term.” support less than 100kW of capacity but be grouped together under centralized software control to
simplify management. Regardless of datacenter size, operating facilities efficiently and continuously
is becoming increasingly complex. This is driving a need for software and analytics-driven services to
help monitor and manage these sites.
All of this is required to deliver what 451 Research calls Invisible Infrastructure. This is defined in
our 451 4SIGHT report as infrastructure that ‘just works’: instantly available, operating and scaling
regardless of specific requirements, and billed and metered in a flexible manner. Customers
increasingly expect ‘cloud-like’ consumption options for all of their infrastructure needs, and providers
that can offer automation, scalability and flexibility as well as customization will stand out from the
crowd in the short term while possibly being the only ones to survive in the long term.
Winners Losers
Providers Will Accommodate or Providers that can attract multiple Providers chasing hyperscale
Cooperate With the Cloud hyperscale deployments to build a deployments to the exclusion of other
sticky cloud ecosystem; those that opportunities; providers stuck in
can differentiate with distinction; ‘pure-play’ thinking; those not open
enterprises moving to hybrid IT to partnerships; regional cloud service
providers only selling IaaS
IoT and 5G Will Change the Way We Providers with datacenters in Local facilities without a lot of
Think About the Edge multiple remote locations, an connectivity options; providers
interconnection platform, or services targeting the content delivery
beyond colocation; telcos that can business without sites in edge
turn their local central offices into cities; small local players that only
edge datacenters; local development provide colocation; cloud consumers
boards seeking to gain foreign direct concerned by cost
investment
Datacenters Will Be Increasingly Operators that are willing to adapt Operators with entrenched habits and
Industrialized, AI-Assisted and (Re) quickly and those that understand the no long-term technology outlook;
distributed value of software those overly focused on the endgame
Rising Chip Power Will Force Rack Operators willing and able to add Datacenter operators that do not keep
Density Higher, Boosting Interest in direct liquid cooling (DLC) cabinets; an eye on the DLC trend
Liquid Cooling enterprises and cloud firms that are
able to take advantage of high-power
chips
Climate Change and Sustainability Operators that have already made Operators that are comfortable with
Will Become Hot Issues efforts to boost efficiency and use their current disaster plans
renewables
Methodology
Reports such as this one represent a holistic perspective on key emerging markets in the enterprise IT
space. These markets evolve quickly, though, so 451 Research offers additional services that provide
critical marketplace updates. These updated reports and perspectives are presented on a daily basis
via the company’s core intelligence service, 451 Research Market Insight. Forward-looking M&A
analysis and perspectives on strategic acquisitions and the liquidity environment for technology
companies are also updated regularly via Market Insight, which is backed by the industry-leading 451
Research M&A KnowledgeBase.
Emerging technologies and markets are covered in 451 Research channels including Applied
Infrastructure & DevOps; Cloud Transformation; Customer Experience & Commerce; Data, AI &
Analytics; Datacenter Services & Infrastructure; Information Security; Internet of Things; Managed
Services & Hosting; and Workforce Productivity & Compliance.
Beyond that, 451 Research has a robust set of quantitative insights covered in products such as Voice
of the Enterprise, Voice of the Connected User Landscape, Voice of the Service Provider, Cloud Price
Index, Market Monitor, the M&A KnowledgeBase and the Datacenter KnowledgeBase.
All of these 451 Research services, which are accessible via the web, provide critical and timely analysis
specifically focused on the business of enterprise IT innovation.
4SIGHT
Table of Contents
Trend 1: Providers Will Accommodate or Cooperate With the Cloud 1
Figure 1: Non-Cloud Workloads��������������������������������������������������������������������������������������������������������������������������������������������������2
Recommendations ������������������������������������������������������������������������������������������������������������������������������������������������������������3
Winners�����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������3
Losers��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������4
Trend 2: IoT and 5G Will Change the Way We Think About the Edge 5
Figure 2: IoT Data Initial Storage and Analysis ��������������������������������������������������������������������������������������������������������������������5
Figure 3: Store IoT Data and Execute Additional Analysis�����������������������������������������������������������������������������������������������6
Figure 4: Determining Best Execution Venue for an IoT Workload ������������������������������������������������������������������������������7
Recommendations ������������������������������������������������������������������������������������������������������������������������������������������������������������8
Winners ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������8
Losers��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������8
Trend 4: Rising Chip Power Will Force Rack Density Higher, Boosting Interest in
Liquid Cooling 13
Recommendations ��������������������������������������������������������������������������������������������������������������������������������������������������������� 15
Winners ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 15
Losers ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 15
Further Reading 21
Index of Companies 22