Tuesday, May 28, 2024

Blog | Modular data centers: Should you jump on the bandwagon?

By Nick Parfitt

Nick Parfitt, Lead Analyst, DCD Intelligence

Data centers are the backbone of any successful organization in today?s digital age. However, the challenges associated with data centers are all too real ? for instance, traditional data centers consume tremendous amounts of electricity and contribute to air pollution in the form of diesel exhaust and pertinently, the high operational costs.

The solution to these problems may lie in the form of modular data centers, which are fast rising in Asia. According to the DCD Intelligence 2013 White Paper on modular versus traditional data centers, the key reason why modular solutions are seen as a better alternative is because of their ability to minimize ongoing costs. Modular end users find that they have greater control of overall operations costs, which makes the costs of data center deployment a lot more predictable.

The rise of modular data centers in Asia

Many emerging markets in Asia have recognized the potential and benefits that modular solutions offer to both owners and operators. The more recently established markets in South East Asia outside of Singapore have seen some of the highest rates of investment in modular data centers.

In Asia, the three countries in particular where modular solutions are growing at a rapid rate are Indonesia, India, and mainland China.

According to the DCD Intelligence Data Centre Trends 2013-2014: Asia Pacific, the number of organizations investing in modular solutions in Indonesia and India increased by 12 percent and mainland China by 15 percent from 2013-2014.

This growth is due to the fact that modular centers have the ability to be self-contained and self-sufficient, which is a significant advantage as they are able to function under variable and more difficult operating conditions. For example, in markets that face issues such as power instability, modular data centers are a much better alternative.

Containerized solutions are also seeing huge growth in this region and the ability to operate in challenging environments is another reason for strong growth of modular data centers in nascent and ?embryonic? markets, such as Cambodia and Myanmar

With the rising popularity of modular data centers, does this then mean that everyone should jump on the modular data center bandwagon? Possibly not.

When to use a modular data center

Regardless of whether a data center is traditional or modular in build, it will have similar requirements related to security, provision of water, staff, supplies, and vendor support, and authorization. Since both types have similar requirements, organizations have to analyze the risk and return of the design and build methodology.

The accuracy and robustness of the research and analysis that is conducted as part of the initial decision making process has a huge impact. This process is not likely to be limited to the means of the build but possibly include options such as outsourcing, cloud deployment, the extension or refresh of current facilities, migration, and consolidation.

Although there are many merits for using modular centers, there are some instances when they may be unsuitable. Some situations where modular data centers may not be appropriate include:

? Reliance on high performing computing,
? Concerns about being locked into a single supplier
? A need to ensure compatibility with the existing equipment across a portfolio

Considering the current market landscape and variety of offerings available today, organizations need to keep in mind several factors when planning to invest in modular data centers:

1) Use the strategic IT requirements of your organization as the yardstick for the adoption of the right technology.

2) Factor in all of the costs along the entire data center lifecycle (?TCO?) that have to do with planning, designing and running a new data center, including site costs, hardware and software purchase, build costs, ongoing costs of energy, staffing, security, taxes, maintenance and repair, as well as decommissioning costs.

3) Do research on the large number of solutions that are available as they operate on a number of different standards, certification and support levels. It will be beneficial to shop around and to seek advice from organizations that have undergone a similar process.

Modular data centers are definitely gaining traction in Asia and more organizations are looking towards investing in them. Organizations also need to remember that while the terms ?modular? and ?containerized? are used almost generically, there is an increasing variety of sophistication and capability with each category.

Therefore, the decision making needs to focus on the increasing number of options within each type and also compare this to their needs before deciding on either a modular data center or traditional data center model.

The author is the lead analyst at DCD Intelligence


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