Data centers decline as users turn to rented servers

Data centers are declining worldwide both in numbers and square footage, according to IDC — a remarkable change for an industry that has seen booming growth for many years.

Users are consolidating data centers and increasingly renting server power. These two trends are having a major impact on data center space.

The number of data centers worldwide peaked at 8.55 million in 2015, according to IDC. That figure began declining last year, and is expected to drop to an expected 8.4 million this year. By 2021, the research firm expects there to be 7.2 million data centers globally, more than 15 percent fewer than in 2015.

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InfoWorld Cloud Computing

IDG Contributor Network: Cloud war collateral: What the rise of AWS, Azure has meant for data centers

When Henry Ford introduced the Model T in the fall of 1908, he likely didn’t comprehend the full scope of events he would set in motion. Come 1914, and Ford’s production line had reduced assembly times from 12 hours to less than two and a half hours, slashed the going price of an automobile, and redefined the working wage of factory employees, ultimately putting more than 15 million Model T’s on the road and igniting the entire automotive industry in the years to come.

Competition often leads to innovation and progress for other industry players. One modern equivalent of this can be seen in the rise of public and private cloud providers like Amazon and Microsoft.  AWS’ sales numbers recently topped $ 12 billion, up nearly 55 percent from the same period last year. Meanwhile, Microsoft continues to push ahead and is projected to reach $ 20 billion in annual cloud revenue by June 2018. As these powerhouses and others like Oracle and Google continue to see widespread adoption across industries, other players have stepped in to consume their piece of the $ 204 billion-dollar cloud infrastructure pie, leading to an ecosystem of cloud and data center partners that continue to push the technology envelope to expand capabilities of these offerings. 

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Network World Cloud Computing

Look for Amazon’s new homegrown chips in data centers, not Fire devices

Amazon’s jump into the chip business won’t change what’s in Fire devices — for now — but it’ll help the retailer drive more media delivery, file storage and cloud systems in homes and data centers.

Annapurna Labs, an Amazon subsidiary, said it would start selling a line of ARM-based chips for hardware that handles 4K video delivery, storage, IoT, cloud, and networking. The chips will be sold to makers of products for homes and data centers.

The announcement surprised many, since selling chips is a radical shift from Amazon’s bread-and-butter retail business. But the company has jumped outside its comfort zone before, dabbling in new businesses such as Web hosting with AWS (Amazon Web Services), which has become a runaway success.

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InfoWorld Cloud Computing