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Adjusting to Expanding Data Center Demand

 
 
By Dennis McCafferty  |  Posted 02-25-2015
 
 
 
 
 
 
 
 
 
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    Growing Presence
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    Growing Presence

    More than one-half of CIOs and other survey respondents said their companies have expanded their data center capacity over the past five years, and 69% anticipate doing so over the next five years.
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    Long-Term Commitment
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    Long-Term Commitment

    63% of those surveyed feel that the strong growth of data center demand will last for at least 10 years, with 37% saying it will last more than 10 years.
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    Biggest Data Center Management Challenges
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    Biggest Data Center Management Challenges

    Dealing with expense management/tight budgets: 25%, Planning for the future: 17%, Discerning true requirements: 8%, Being restricted by limited capital: 8%
  • Previous
    Most Common Data Center Design Mistakes
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    Most Common Data Center Design Mistakes

    Not considering/not planning for the future: 18%, Lack of planning for accurate capacity: 15%, Choosing inappropriate airflow/cooling system: 10%
  • Previous
    Inside Job
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    Inside Job

    64% of survey respondents said they own and manage all or most of their data center operations in-house.
  • Previous
    Decisions, Decisions
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    Decisions, Decisions

    37% said they struggle to determine how much capacity is needed when planning a data center expansion, and 20% said it's difficult to decide whether to build, renovate or lease.
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    Attractive Leasing Options
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    Attractive Leasing Options

    31% said they'll lease data center capacity to avoid or defer capital expenditures, and the same percentage said they'll do so to decrease their risk. An additional 23% said they seek better speed to market by leasing.
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    Ways to Expand Data Center Capacity Over the Next 12 to 24 Months
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    Ways to Expand Data Center Capacity Over the Next 12 to 24 Months

    Build: 47%, Renovate: 28%, Lease: 26%
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    Majority Stake
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    Majority Stake

    Survey respondents predicted that IT providers will own 42% of the nation's servers 10 years from now, and real estate solution providers will own 31%.
 

To accommodate the staggering growth of big data, CIOs and other IT decision makers anticipate a significant increase in data center demand, according to a recent survey from Mortenson. The accompanying report, titled "Insights into Executive Challenges: Data Center Decisions," indicates that the majority of organizations have boosted data center capacity over the last five years, and expect to continue doing so for the next five years. Such expansion involves challenges, of course, including difficult decisions about whether to build a new data center, lease from a provider or renovate an existing facility. With many survey respondents dealing with limited budgets and capital, much is on the line in making these choices. "Data center owners and operators face high-stakes challenges, as poor decisions can lead to difficulties that must be dealt with for decades," according to the report. "In our work with data center owners and operators, we witness the perpetual task of assessing the trade-offs between (capital expenditures) and (operating expenditures). Fundamental considerations … become trickier because decisions must be made without fully knowing future requirements." Mortenson is a Minneapolis-based construction and development services company which builds data centers. More than 220 CIOs, IT decision makers and other managers and professionals took part in the research.

 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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