How the Internet of Things will put pressure on data centers.

Data Center

by Amy-jo Crowley| 18 March 2014

 
Objects will generate big data that needs to be processed and analyzed in real time. 
 
Smart devices will put pressure on data centers as they generate big data that needs to be processed and analysed in real time, according to the latest research.

Gartner predicts that there will be 26 billion Internet of Things (IoT) units installed by 2020 as IoT suppliers generate $300bn in revenue.

IoT refers to appliances enabled with sensors and assigned their own IP address that connect to the internet - thus creating a world where devices and machines can communicate with each other, interpret information and make intelligent decisions in real time as more and more devices connect to the internet.

Fabrizio Biscotti, a research director at Gartner, said: "Processing large quantities of IoT data in real time will increase as a proportion of workloads of data centers, leaving providers facing new security, capacity and analytic challenges."
Gartner outlined the following challenges for data center technology providers.

1. Security - The increasing digitization and automation of the multitudes of devices deployed across different areas of modern urban environments are set to create new security challenges to many industries.

2. Enterprise - Significant security challenges will remain as the big data created as a result of the deployment of myriad devices will drastically increase security complexity. This, in turn, will have an impact on availability requirements, which are also expected to increase, putting real-time business processes and, potentially, personal safety at risk.

3. Consumer Privacy - As is already the case with smart metering equipment and increasingly digitized automobiles, there will be a vast amount of data providing information on users' personal use of devices that, if not secured, can give rise to breaches of privacy. This is particularly challenging as the information generated by IoT is a key to bringing better services and the management of such devices.

4. Data - The impact of the IoT on storage is two-pronged in types of data to be stored: personal data (consumer-driven) and big data (enterprise-driven). As consumers utilize apps and devices continue to learn about the user, significant data will be generated.

5. Storage Management - The impact of the IoT on storage infrastructure is another factor contributing to the increasing demand for more storage capacity, and one that will have to be addressed as this data becomes more prevalent. The focus today must be on storage capacity, as well as whether or not the business can harvest and use IoT data in a cost-effective manner.

6. Server Technologies - The impact of IoT on the server market will be largely focused on increased investment in key vertical industries and organizations related to those industries where IoT can be profitable or add significant value.

7. Data Center Network - Existing data center WAN links are sized for the moderate-bandwidth requirements generated by human interactions with applications. IoT promises to dramatically change these patterns by transferring massive amounts of small message sensor data to the data center for processing, dramatically increasing inbound data center bandwidth requirements.

Netflix IT is no house of cards

 BY IJCOX 

When looking for a case study of digital disruption there is probably no better example than Netflix, the US company that has revolutionized how we consume films and TV shows at home and on the move. Netflix started life in 1997 as a direct rival to Blockbuster in the DVD rental market. Instead of building a chain of thousands of stores to compete with its larger and more established rival, the Netflix model relied on using the postal system as a low cost distribution network.

The emergence of a low cost rival was challenging enough for Blockbuster but when Netflix introduced its video steaming service in 2007, the real disruption of its core market began. And this disruption would eventually play a major part in the demise of the Blockbuster business, which finally stopped trading towards the end of 2013. Today, Netflix has over 44 million members in more than 40 countries who view more than one billion hours of TV shows and movies per month. The company, which refers to itself as the “world’s leading internet television network”, has redefined the market for viewing films and TV.

And, if you are looking for an example of reinventing enterprise IT, then the way in which Netflix VP of IT Operations, Mike D Kail, runs the organization’s technology function is a good starting point. In a recent interview with CXOTalk, Kail summarised his philosophy for IT at Netflix with the comment “don’t build data centers if it’s not your core business.” In other words, as Kail explained further, he wants his IT team to focus on being an entertainment company, not on “hardware, network infrastructure and storage systems” which are readily available from service providers. To demonstrate his commitment to this approach he has migrated the company’s finance systems to the cloud, implemented Google apps and even the in-house developed customer applications, which are part of the core business, are deployed in the cloud thereby eliminating the need to acquire, maintain and support the infrastructure that would be needed to host these solutions internally. His objective is to have 100% of corporate IT in the cloud by the end of the current year.

In the digital age technology is being used to enable new capabilities, enhance the customer experience, create value and generate revenue; technology is now a source of differentiation and competitive advantage in all industries. To stay relevant and to play a key role in the digital age, CIOs and their departments also need to shift their focus to creating value and driving revenue. They cannot do this if the majority of the IT resources and hence management attention are allocated to maintaining and supporting the organisation’s existing infrastructure and systems. By focusing his team on the core business of Netflix Kail is ensuring that they are adding real value to the organization.

There has never been a better time for IT to fix its reputation in the industry. CIOs have to start fixing the reputation of their functions now. To succeed in the digital age, organizations need the right type of IT function, one that is focused on the areas where technology will have the greatest impact, is proactive and works with the rest of the business to find ways to use technology to create value. Businesses that do not have this type of IT function will find it increasingly hard to compete in the digital age. And CIOs that do not take this path are likely to find themselves bypassed by the rest of the organization and ultimately out of a job.