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Monday, December 19th, 2016

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    8:26p
    Mega-Clouds Fuel Data Center Market Growth Across Asia-Pacific

    The Asia-Pacific data center market is extremely diverse, and regional and country-level differentiation is one of its defining characteristics. Today, as more and more American and European data center and cloud providers and their customers are looking east, it is important to be aware of several nuances that define the competitive landscape and put the various outlooks for specific markets into context.

    First, let’s identify the region’s sub-markets. Singapore, Australia, Hong Kong and Japan are properly considered mature markets, and this distinguishes them from other Asia-Pacific markets that are still emerging. It is also interesting that Singapore and Hong Kong are really just single-city markets, while Australia and Japan are each home to multiple markets of meaningful sizes. The area can also be thought of in terms of sub-regions. There is Southeast Asia, ANZ (Australia and New Zealand), South Asia, and East Asia, while China, Japan, and Korea all exhibit characteristics that make them perhaps best understood as standalone markets.

    The diversity within the region translates to real-life challenges. Serving end users in Asia-Pacific means setting up shop in one of the major markets but doesn’t guarantee reach across the entire region. As a result, service providers and enterprises often have to consider setting up infrastructure in multiple locations.

    Maybe the best example of this dynamic is the role of the Chinese market. It is common for organizations to serve China out of Singapore and Hong Kong, but that may not be a sustainable long-term strategy. Organizations and service providers will have to develop local market strategies. Not coincidentally, the wholesale data center market in China is starting to develop and a lot if it is being driven by anticipation of this demand. It works the other way as well. Chinese cloud, e-commerce, social media, and content companies like Baidu and Tencent are beginning to spread their wings and venture outside their domestic market and enter places like Singapore. The Alibaba Cloud is following these end users and standing up cloud infrastructure across the region as well.

    Right now, the Asia-Pacific region is in the midst of a surge in wholesale colocation growth driven by the massive-scale cloud providers as they expand aggressively in major hubs such as Singapore, Hong Kong, Tokyo, Sydney, and Melbourne. Competition within the wholesale colocation segment remains intense as data center providers are essentially fighting over a handful of multi-megawatt deals from Amazon, Microsoft, Alibaba, Google, and IBM. This has led to more aggressive wholesale pricing in all major APAC data center markets and emergence of new wholesale colocation providers that are deploying more efficient technologies that significantly lower their construction cost per 1MW of data center capacity. The public clouds have every reason to continue using colocation partners in this part of the world, and the sustainability of this demand is quite healthy. In fact, wholesale colocation – coming from the public clouds – continues to be the primary driver of data center leasing activity in APAC.

    See alsoFacebook and Google to Build Transpacific Submarine Cable

    Cloud is an important driver but not the only one. Across the region, there are familiar stories: aging data centers, a desire to shift capital expenditures to operational expenditures and taking advantage of economies of scale and expertise of commercial data center providers. This has helped keep demand moving and motivated providers to build out more supply. Key hubs like Singapore and Hong Kong – even with limited land availability – have seen a significant influx of new data center supply coming online over the 2015-2017 time frame. Singapore has seen the most activity. Though the smallest country in APAC from a land area perspective, it has seen over 150 MW of critical IT load capacity enter the market in 2015-2017 from a diverse group of international and local data center providers.

    See alsoSingapore Data Center Startup to Challenge Asia Pacific Players

    The outlook for the region remains strong. The mature markets continue to benefit from a unique combination of local and international demand that is being pushed by accelerating adoption of cloud. Meanwhile, the region is home to a number of countries – Indonesia, Vietnam, and Thailand – that are just starting to scratch the surface of their data center market potential. But the long-term growth of the region will still be driven by China and India. These two markets have the size and scope to make a game-changing impact on the sector for years and decades to come.

    About the author: Jabez Tan is Research Director for North American and Asia-Pacific markets at Structure Research. His coverage areas include retail colocation, wholesale colocation, modular data centers, data center technology, interconnection, and managed hosting.

    10:12p
    Six Pitfalls of Cloud Assessments

    Raju Chekuri is President and CEO at NetEnrich.

    Any sound IT project begins with an assessment of current state, goals and requirements. Moving to the cloud is no exception; in fact, cloud computing is less a project than a transformation of running IT. This makes doing a proper and well-planned assessment even more important if your company is planning a migration in part or in full to the cloud.

    Yet one assessment isn’t exactly like another. This is a specialized effort, which most IT departments aren’t prepared to do on their own.

    I like to think of assessments as the start of a journey, delivering a roadmap for milestones, costs and ROI. Don’t be fooled by experts who will tell you that an assessment is the same thing as capacity planning.

    There’s much more to preparing for a bulletproof cloud environment than mapping your on-premise environment to cloud infrastructure. You’ve got to understand the differences between the two environments, and plan accordingly.

    A glaring difference between on-premises infrastructure and running in the cloud is latency. Applications hosted in the cloud will require sufficient bandwidth and compute resource to make up for the longer distance that data must travel to get to your employees, as well as the effect of shared resources.

    Cloud platforms also will vary. Microsoft Azure, for example, offers a network accelerator service called ExpressRoute that offers better network speeds for such use cases. Be sure to work with a firm that is an expert in your cloud platform of choice.

    Regardless of providers, here’s a list of some of the common pitfalls that IT organizations encounter in assessments, leading to performance issues and cost overruns later.

    Lack of existing performance data. It’s challenging to design a new environment without benchmarks. You may think that whatever infrastructure you have deployed internally will translate seamlessly to the cloud. That’s not usually the case. To avoid under-provisioning or over-provisioning your new cloud environment, make sure to gather adequate performance metrics over a few weeks, as opposed to just a few hours. This data will allow you to understand user patterns and system requirements under different conditions and scenarios.

    Not enough bandwidth. You’ve got to have the right pipes to run in the cloud. To determine your needs, first analyze how much network bandwidth your applications currently use, or plan to use. Next, consider the architecture. If you will have a hybrid environment straddling your on-premises and Microsoft Azure environments, for instance, then you might want to consider a dedicated line.

    Lack of planning for cloud storage. Transitioning from on-premises storage such as SAN to cloud storage comes with many options. Public cloud storage options include block storage (ideal for high-performance applications), File and NAS storage, object storage and tape storage. The latter two choices are best for archiving. Another decision is whether your systems require local or global redundancy — the latter being more resilient for high uptime needs of critical systems, yet also more expensive.

    Overlooking app dependencies. Applications today rarely run in isolation. They connect to databases and other applications, which may be running on different servers and the VMs. If you fail to consider those dependencies and move an application to the cloud without its “partners,” the application won’t work well, if at all. Therefore, move applications and their dependent systems together, to avoid such issues. Dependency mapping is no small feat. It takes time and a certain amount of expertise. Ensure that your migration partner is willing and able to perform this extremely important task for your environment.  It requires automated tools to do this cost-effectively, which is why not all service partners can offer it.

    Going all-in when you really shouldn’t. An integral part of the assessment is analyzing the risk of moving a system to the cloud. Some applications, like heavily customized legacy systems, will be too expensive or problematic to adapt to the cloud. It’s simply not worth the trouble. Other applications may require control that cloud infrastructure can’t support.  Moving to the cloud is quite often a phased effort or a hybrid project, especially for large, multifaceted organizations. Vendors that push an all-in strategy at all costs should be put out to pasture.

    Making false assumptions about security. Cloud platforms have matured to the point that there is ample truth in the saying that cloud security is better than what most companies can manage on their own. That makes perfect sense, since the big cloud companies have thousands of large corporate customers to support; they can’t risk a security breach if they want to stay relevant and grow the lucrative enterprise business.

    However, with security, “measure twice, and cut once.”

    Planning for the cloud means considering not only what security needs you’ll have for those systems migrating, but how your company can actually benefit from the strong security technologies available in the cloud.

    This is by no means an exhaustive list of what to consider in an assessment. As always, industry and company-specific issues and needs will dictate your plan. But just like planning a cross-country move for your family, there’s always more contingencies to consider in making the transition smooth and happy for all.

    Industry Perspectives is a content channel at Data Center Knowledge highlighting thought leadership in the data center arena. See our guidelines and submission process for information on participating. View previously published Industry Perspectives in our Knowledge Library.

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