Guest Talk

Why micro data center solutions will gain more adoption across global organizations, particularly healthcare

Amruta Chowgule

As enterprises across the globe strategize fast-paced recovery from COVID-19 losses, they have been looking for turnkey solutions to maximize their productivity. Exponential increase in data has generated a higher level of interest in the micro data centers (MDCs) industry, especially across IoT and localized content delivery applications. Since MDCs are self-contained, converged solutions that accommodate a host of business needs, ranging from storage to security management, they are consequential in determining the success of every organization.

According to a report by Global Market Insights Inc., by 2026, the micro data center market size will cross $15 billion. With growing penetration of IoT devices shifting the scene in the edge computing market, minimized data latency demands of IoT applications will continue to influence decisions at the edge. According to a 2020 Annual Internet Report white paper by Cisco, IoT devices will represent nearly 50% of all networked devices worldwide by 2023, reaching 14.7 billion units.

Why are enterprises increasingly favoring micro edge data centers over traditional alternatives?

Edge computing needs are expanding in sync with the emergence of more edge applications cropping up every now and then. Thanks to the scalability concerns stirred up by the COVID-19 pandemic, businesses are looking for cloud computing solutions that can be upgraded or downgraded. Several U.S. based start-ups that that had earmarked investments into the edge computing before the pandemic, promptly redirected the amount toward their core operations for dealing with the spike in data volumes.

Pre-built or prefabricated data center systems are becoming quite popular amongst IT managers, who are focused on deploying additional capacities in a flash. With limited space availability being another major concern for numerous small offices, banks, retail stores, and other small and medium-sized businesses (SMBs), compact racks appear to solve the impracticability concerns associated with conventional systems. These solutions can range from a single rack to a shipping container in terms of size.   

Listed below are a few other benefits attracting sales flow into the micro data center market:

Lower latency: By bringing the customers and servers geographically closer, MDCs address latency problems more efficiently than traditional data centers. This is a major advantage, especially for content delivery network applications. Even a single second delay in page loading can translate to substantial declines in sales, lesser page views, and lesser customer retention.

Minimized costs: While conventional data centers are synonymous with high upfront costs, including both ongoing Opex and Capex, systems developed by micro data center market participants are apt at keeping them to the minimum.

Faster deployment: While a traditional compute facility can take a few months to a couple of years to build, micro data centers can be deployed withing three to four months. In October 2021, Schneider Electric launched a new easy to order and install series of racks and enclosures that can be delivered within 2 to 4 weeks – a remarkable feat that other micro data center market players are likely to take cue from.

Higher resilience: Power supply discrepancies hamper the output in traditional data centers. MDCs, on the other hand, can maneuver multiple failovers.

Medical communities harness reliability of solutions offered by micro data center industry players

Hospitals and other healthcare organizations have been registering a massive amount of data since the beginning of the COVID-19 pandemic. Even before this emergency, the volumes of data generated by pharmaceutical, healthcare, and medical enterprises was astronomical. A 2020 survey conducted by Dell uncovers that a staggering 900% rise in healthcare data was witnessed between 2016 and 2019. The NHS leveraged healthcare data and analytics tools to address the challenges faced during the three consecutive coronavirus waves.

IT departments of healthcare establishments are seeking solutions for their remote, unconditioned, or distributed locations. The key advantage of these systems is that they are designed and sealed to provide optimal protection from dust and particulate matter that can damage the sensitive equipment in these locations, thereby steering the micro mobile data center industry trends.

The ability of MDCs to transfer healthcare data in real time has eliminated the need to upload data to cloud before analysis and use, while ensuring minimal latency lags. From medical test results being quickly processed and delivered to patients to providing protection from cyber-attacks and physical access, these systems have become game-changers for care delivery.

In February 2022, Energy Field security (EFS) announced its plans to develop to an edge micro data center across a 7-acre site in Porter Court, near Delta Health Hospital, Colorado. The facility will offer secure IT computer space and managed services to the regional medical community. Project Salus will provide micro-grid solar-powered, low latency connectivity as well as backup, cloud, and disaster recovery services, minimizing vulnerability and expenses for local municipalities and healthcare providers.

Low latency, scalability, compact size, minimal costs, and faster deployment are some top reasons why global enterprises will continue to migrate to micro data centers. Just in time for upcoming global emergencies, healthcare organizations in the U.S. have been increasingly relying on micro data center companies for ensuring operational efficiency amidst times of uncertainties.

Authors Bio:

Amruta Chowgule

An English literature enthusiast with an M.Phil. in the subject, Amruta Chowgule slipped into the domain of content creation with utmost ease. She currently pens down insightful research articles across numerous domains such as technology, automotive, electronics, and healthcare. She is also motivated by her interest in disciplines as diverse as linguistics, anthropology, historiography, art & culture, and feminist literary theory & criticism.

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