{"id":12154,"date":"2018-04-27T11:00:16","date_gmt":"2018-04-27T19:00:16","guid":{"rendered":"http:\/\/www.palada.net\/index.php\/2018\/04\/27\/news-5923\/"},"modified":"2018-04-27T11:00:16","modified_gmt":"2018-04-27T19:00:16","slug":"news-5923","status":"publish","type":"post","link":"http:\/\/www.palada.net\/index.php\/2018\/04\/27\/news-5923\/","title":{"rendered":"3 Market Observations from Innovation Summit Paris: Edge Data Centers, Colocation Growth and Automation"},"content":{"rendered":"<p><strong>Credit to Author: Dave Johnson| Date: Fri, 27 Apr 2018 18:49:27 +0000<\/strong><\/p>\n<p>Spending time with customers at this month\u2019s Schneider Electric Innovation Summit in Paris made three things clear: Edge data centers are a big priority for enterprise and colocation providers, the colocation market is still experiencing healthy growth, and the digital transformation we\u2019re now experiencing presents significant opportunities to operate data centers more efficiently and effectively.<\/p>\n<p>I love these events because they give me the opportunity to meet with a wide variety of customers and get a reality check on the issues they\u2019re facing day to day. With more than 5,400 visitors on hand from around the globe, there was no shortage of people to talk to. It was great to confirm that the trends we\u2019ve been seeing \u2013 and trying to address \u2013 are in sync with what customers are dealing with.<\/p>\n<div id=\"attachment_47805\" style=\"width: 360px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-47805\" src=\"https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2018\/04\/Dave-Johnson-Paris-Summit.png-Option-2-300x216.png\" alt=\"Dave Johnson Innovation Summit Paris\" width=\"350\" height=\"251\" srcset=\"https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2018\/04\/Dave-Johnson-Paris-Summit.png-Option-2-300x216.png 300w, https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2018\/04\/Dave-Johnson-Paris-Summit.png-Option-2.png 540w\" sizes=\"auto, (max-width: 350px) 100vw, 350px\" \/><\/p>\n<p class=\"wp-caption-text\">Dave Johnson speaking at Schneider Electric&#8217;s Innovation Summit in Paris<\/p>\n<\/div>\n<h2><strong>Strong demand for edge data centers <\/strong><\/h2>\n<p>Let\u2019s start with the edge. It\u2019s clear that Internet of Things (IoT) is driving demand for edge data centers. With so many companies taking advantage of IoT for applications ranging from retail to healthcare, it\u2019s generating an enormous amount of data. Statistics from the Cisco Global Cloud Index estimate IoT has the potential to generate 275 times more data than IP traffic by 2020 (a stat we cited in this post on <a href=\"https:\/\/blog.schneider-electric.com\/co-location\/2018\/03\/28\/investment-banker-paints-rosy-picture-of-colocation-market-headed-into-2018\/\" target=\"_blank\" rel=\"noopener\">data center market trends<\/a>). It\u2019s going to take a slew of data centers to deal with all that data, and many of them will need to be edge data centers that are close to the source of the data.<\/p>\n<p>That presents significant opportunity for colocation providers and, from the conversations I had, they\u2019re anxious to play a role. So are a lot of our strategic partners, who we\u2019re working with to provide complete edge solutions for customers, including all the IT and supporting infrastructure, software and monitoring services. Such complete solutions can include prefabricated, modular data centers, as detailed in this <a href=\"https:\/\/blog.schneider-electric.com\/datacenter\/2017\/08\/31\/prefabricated-modular-solutions-perfect-fit-edge-data-centers\/\" target=\"_blank\" rel=\"noopener\">previous post<\/a>.<\/p>\n<h2><strong>Strong growth in colocation market <\/strong><\/h2>\n<p>The strong pace of growth among colocation providers, and how to manage it, was another theme at the event. Much of that growth is attributed to the Internet Giants who are turning to colocation providers to help them expand into new geographic locations. Currently, we see about half of all colocation space going to Internet Giants, and it\u2019s only growing; it won\u2019t be long before they represent a majority of colocation business.<\/p>\n<p>For proof of the impressive colo growth, consider the gains some of the larger players are seeing in their stock prices. A few months ago, I heard Herb May, a partner and managing director with DH Capital, an investment bank in New York focused on the Internet infrastructure space, <a href=\"https:\/\/blog.schneider-electric.com\/co-location\/2018\/03\/28\/investment-banker-paints-rosy-picture-of-colocation-market-headed-into-2018\/\" target=\"_blank\" rel=\"noopener\">deliver a talk on the topic<\/a>. In 2017, he said CoreSite saw gains of nearly 60%, Interxion was up more than 50% and CyrusOne was up 45%. Likewise, real estate investment trusts (REITs) were outpacing gains made in a robust stock market for the year.<\/p>\n<p>\u201cNo industry group has benefitted probably more than the REIT and the colo players,\u201d <a href=\"https:\/\/blog.schneider-electric.com\/co-location\/2018\/03\/28\/investment-banker-paints-rosy-picture-of-colocation-market-headed-into-2018\/\" target=\"_blank\" rel=\"noopener\">May said<\/a>. And he doesn\u2019t expect any slowdown in 2018, especially for providers with highly automated infrastructure. \u201cCloud and IP traffic growth creates this almost can\u2019t-miss scenario for the data center providers with highly networked and\/or scaled campuses,\u201d he said.<\/p>\n<p>From my conversations with colocation provider customers at the Innovation Summit, it appears May\u2019s prediction was spot on.<\/p>\n<h2><strong>Putting IoT technology and analytics to work in the data center <\/strong><\/h2>\n<p>Keeping up with all this demand for data center space is also driving the need for analytics and other advanced technology. As a result, just as other verticals are taking advantage of IoT technology, so is the data center industry.<\/p>\n<p>It\u2019s now possible to instrument various components of the data center and have them continually report on their status, providing real-time data to inform maintenance and efficiency applications. Schneider Electric\u2019s cloud-based EcoStruxure IT <sup>TM <\/sup>platform, for example, collects data from all sorts of data center and building devices and infrastructure, from several hundred data centers. It collects the data in a data lake and then applies analytics to \u201clearn\u201d which conditions indicate a certain piece of equipment needs maintenance as well as how to increase efficiency.<\/p>\n<p>The result is data center owners get smarter about maintenance and can implement a more predictive rather than reactive or scheduled-based maintenance program. That not only increases uptime but, in many cases, also extends the life of data center infrastructure, thus reducing costs. Similarly, the data EcoStruxure IT collects enables applications that point the way to increased data center efficiency, enabling data center operators to save money. As these systems grow ever-smarter, I expect they\u2019ll be able to automate more and more data center operations tasks as well.<\/p>\n<p>Attending events like the Innovation Summit make me appreciate that we are living through a real inflection point in the data center industry. We are at once witnessing astounding growth yet are more than keeping up with it thanks to the application of intelligent, data-driven approaches such as EcoStruxure IT.<\/p>\n<p>To learn more about EcoStruxure IT and how it can help you keep up with the growth of your data center while operating more efficiently, <a href=\"https:\/\/www.schneider-electric.com\/en\/work\/campaign\/ecostruxure-it\/\" target=\"_blank\" rel=\"noopener\">access our EcoStruxure IT resources page<\/a>.<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\/datacenter\/2018\/04\/27\/47801\/\">3 Market Observations from Innovation Summit Paris: Edge Data Centers, Colocation Growth and Automation<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\">Schneider Electric Blog<\/a>.<\/p>\n<p><a href=\"https:\/\/blog.schneider-electric.com\/datacenter\/2018\/04\/27\/47801\/\" target=\"bwo\" >http:\/\/blog.schneider-electric.com\/feed\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Credit to Author: Dave Johnson| Date: Fri, 27 Apr 2018 18:49:27 +0000<\/strong><\/p>\n<p>Spending time with customers at this month\u2019s Schneider Electric Innovation Summit in Paris made three things clear: Edge data centers are a big priority for enterprise and colocation providers, the&#8230;  <a href=\"https:\/\/blog.schneider-electric.com\/datacenter\/2018\/04\/27\/47801\/\" title=\"Read3 Market Observations from Innovation Summit Paris: Edge Data Centers, Colocation Growth and Automation\">Read more &#187;<\/a><\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\/datacenter\/2018\/04\/27\/47801\/\">3 Market Observations from Innovation Summit Paris: Edge Data Centers, Colocation Growth and Automation<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\">Schneider Electric Blog<\/a>.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[12389,12388],"tags":[12390,17403,11184,12391,12392,12500,17939,15229,12460,18265,10495,18264],"class_list":["post-12154","post","type-post","status-publish","format-standard","hentry","category-scadaics","category-schneider","tag-colocation","tag-colocation-markets","tag-data-analytics","tag-data-center","tag-data-center-architecture","tag-data-center-planning","tag-dh-capital","tag-ecostruxure-it","tag-edge-data-center","tag-internet-traffic","tag-iot","tag-paris-innovation-summit"],"_links":{"self":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/12154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/comments?post=12154"}],"version-history":[{"count":0,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/12154\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/media?parent=12154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/categories?post=12154"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/tags?post=12154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}