IoT pushes enterprises to outsource datacentres

Digital Realty's Damien Spillane believes the deployment of datacentres through third-party providers will continue to grow as more data is accumulated due to the growth of the Internet of Things.

The rise of the Internet of Things (IoT) has been a key driver behind why enterprises that have traditionally built and owned their datacentres are choosing to outsource it to third-party providers, according to Damien Spillane, Digital Realty ANZ director.

Spillane said the deployment of datacentres by third-party providers enables companies to continue to experience the same benefits as they previously would have if they owned their own. This includes the ability to increase revenue, be flexible, and remain compliant around data protection and security -- but without the financial pressures and hassles associated with finding space, sourcing parts, and then building and testing the datacentre.

In realising these benefits, Spillane said customers have been noticeably increasing their storage in order to support the influx of data that is accumulating as a result of IoT.

He said this is causing two main challenges for enterprises: The first about collecting contextual data; and the second about extracting relevant data.

"The reality now is there is more data transferred into our facilities. So the real incremental growth in our space is as our organisations increase their data collection, we see greater contextual data come back," he said.

"At the moment, for them, it's the case of collecting all the information they can, but once they get the correct information they need, they'll be able to deliver that back out as services or products to their customers."

Peter MacGee, Rackspace Australia and New Zealand datacentre manager, agreed, saying that the shift by enterprises to outsource their datacentres has enabled them to focus on analysing data, and generate revenue and extract value from it.

"To us, collecting data is quite easy, and standing up storage is easy ... we have a highly specialised team that work closely with our customers to derive the information out from the stuff they've been storing for years," he said.

"They didn't know what they were going to do with all the information, and they're only starting to figure it out now. This is because they didn't have the ability to figure it out internally. But now they're starting to say, 'I've got all this data. What is it that I want to know?'"

Spillane further noted that the Internet of Things would thrive once the National Broadband Network (NBN) is completely set up in Australia.

"In Australia, we're a little constrained. Once the NBN is set up and we have infrastructure, the benefits for enterprises is obvious, as well as for road traffic systems, logistics, manufacturing, and it just doesn't stop.

"Once fibre to the node, or fibre to the home, or fibre to whatever it ends up being, once bandwidth increase there will be opportunities. I think today, it's more around getting that data, capturing it, and then the creativity of what to do with it will come around when the bandwidth increases."

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