Sustainable Data Center Modernization Strategies for the Digital Enterprise Require A New Look at Technologies and Internal Relationships

  • Gartner reports that enterprise spending on global data center infrastructure reached $200 billion in 2021, an increase of 6% from 2020.

  • Analysts at IDC have noted that a more nuanced understanding of cloud economics has prompted many organizations to pursue a hybrid infrastructure strategy that puts workloads and data where it makes sense through “fit-for-purpose” analyses.

  • Nevertheless, datacenter modernization discussions are often afterthoughts, creating a blind spot on a major element of most enterprise architectures...especially in the context of sustainability, according to Scott Kennedy Site and Facilities CoC Leader at Kyndryl, and Dave McCoy Principal of Data Center Services at Kyndryl.

Given the ocean of digital ink spilled on headlines heralding the inexorable and inevitable adoption of cloud infrastructure by large, mid, and small-sized companies, one could be forgiven for thinking that the future of on-prem data centers is dim. 

Gartner, however, reports that enterprise spending on global data center infrastructure will reach $200 billion in 2021, an increase of 6% from 2020. They further expect the data center market to grow year-over-year through 2024. Meanwhile, analysts at IDC have noted that a more nuanced understanding of cloud economics has prompted many organizations to pursue a hybrid infrastructure strategy that puts workloads and data where it makes sense through “fit-for-purpose” analyses. 

While the trends toward heterogeneous enterprise computing environments have somewhat bolstered demand for enterprise-owned and operated data centers, it does not change the fact that far more attention and resources are being allocated to the cloud aspects of enterprise infrastructure. This could be a mistake, according to Scott Kennedy Site and Facilities CoC Leader at Kyndryl, and Dave McCoy Principal of Data Center Services at Kyndryl, in a podcast interview with BizTechReports.

Scott Kennedy, Kyndryl

“Datacenter modernization discussions in many organizations, it seems, are often afterthoughts, creating a major blind spot on a major element of most enterprise architectures...especially in the context of sustainability,” says McCoy.

The current generation of data centers bears little resemblance to the on-prem infrastructures of our recent past in terms of footprint, function and performance. It is an important consideration if you agree with IDC’s projection that global enterprise data will reach a staggering 163 zettabytes by 2025. 

With more data produced every day, enterprise leaders are looking for environmentally friendly ways to store and process data across today’s complex computing environments. For most organizations of any size, this will have significant implications for how data center resources are managed.  

“The key question is: how can new data center requirements be met in a performant, cost-effective and sustainable manner?” asks Kyndryl’s Kennedy.

Dave McCoy, Kyndryl

According to Kennedy, data centers consume about 50 times more energy than a regular office building. Consequently, an examination of data center investments -- in terms of performance, cost and energy efficiency -- is very likely to reveal many low-hanging fruits of opportunity to reduce carbon emissions while elevating capabilities and improving cost structures. 

“Kyndryl, which in November spun out of IBM as an independent services company, operates over 400 data centers,” explains Kennedy. “Approximately 60% of our data centers now are using renewable energy, reducing our cost while improving our environmental footprint.”

Team Work Makes the Dream Work

Determining the best way to consolidate and optimize data center operations requires high levels of cooperation and coordination with facilities executives. This, says McCoy, is often easier said than done. 

The two departments often generate different subcultures within organizations that can result in unproductive conflicts and turf wars. While data centers often account for a small fraction of an enterprise's total real estate footprint, facilities managers often complain that they account for a disproportionate set of problems because of energy demands and the sensitivity of data equipment to heat and humidity. As a result, making major decisions about this space is often fraught with tension. 

“Resolving this challenge, however, is critical,” says McCoy. “Sustainable modernization initiatives in the data center cannot be accomplished without a highly functional partnership with the facilities teams. This is because, once data centers are up and running, it is the facilities organization that typically manages and maintains the infrastructure. Addressing concerns and Including input from facilities executives early in the data modernization conversations is important to establishing sustainable data centers. It is critical to ensure that people on both teams  – IT and facilities – are on the same page.” 

For more information or to schedule a podcast interview, please contact Lane at LCooper@BizTechReports.com.