SigmaWay Blog

Google, Amazon, and Apple all are tech giants. But apart from being this, they also have one more thing common and that is they all have their data center in rural areas. But this is more of an exception than a rule. Most data centers are located in or close to a city. These giants have done this due to the cheaper rate of lands available in rural areas. But these places lack good telecommunications and power infrastructure. Moreover, there are enough facilities to attract right human capital to such places. It’s better to have a data center in a city than a village. Read the complete article here:  http://www.cio.com/article/3036080/data-center/cities-not-cornfields-draw-data-centers.html

An article by Nick Razey, Co-founder and CEO of Next Generation Data, talks about the value in the IT chain that will migrate to the cloud providers leaving data centers to earn meagre commodity margins. A good data center service also needs well trained staff and embedded policies and procedures.  These parameters directly affect both the quality of the product and its price. For customers, the cost of transition from one data center to another is so high that they will not move their IT overnight if a new, better and cheaper option comes along. Instead they will wait for a natural break such as a technology refresh (and/or the end of a contract) before moving. As a result there are already hundreds (maybe thousands) of cloud service providers and more are emerging every day. Ironically it may be that cloud services are the next commodity and cloud providers will see their margins competed away while data centers remain relatively unaffected by the new IT world.

To know more visit http://www.cloudcomputing-news.net/news/2014/may/07/could-we-have-data-centres-commodity/