ISG sees a substantial growth in IT outsourcing deals in the Nordics in the next two to three years.
ISG’s Provider Lens™ Next-Gen Private/Hybrid Cloud – Data Center Services & Solutions report, released in July 2020, sees a substantial growth in IT outsourcing deals in the Nordics in the next two to three years, with scalability, cost reduction goals and cloud adoption driving demand. So, what does this mean to Nordic organizations, what challenges will they meet and how can they best handle these challenges?
Cloud migration demands data overview
One of the reasons for the multi-cloud strategies mentioned in ISG’s report is that digitalization has made many large inhouse data centers redundant as most company data can be moved to the cloud at a fair price. For many companies, managing their own data center has been an afterthought rather than an important part of their IT strategy. But the demands of digitalization and the widening spread of options for data centers has moved this issue up the priority ladder. And if you have been running your own data center for some time, but have started to migrate most of your data to the cloud, you need to start thinking about what to do with the data that you don’t want to place using a public cloud service. What are your needs and how can these needs be met in a cost-efficient way?
First of all – locate your data
Before a multi-cloud strategy can be realized you need to know where your data is and/or where it is going. In a world where forceful data regulations like the Cloud Act and GDPR have been imposed, organizations need to locate their data to be able to comply with these regulations. At the time GDPR rules came into effect (2018), we asked Nordic decision-makers if they knew where their data was stored. Back then, 60% stated they could not say for sure even in which country their data resided. Two years later, 49% are still not totally sure where their data is physically located. This is troubling indeed. Companies are not aware of whether they are complying to local legislations and GDPR since they’re not aware of where their data is residing. So, when deciding to migrate your data to the cloud, make sure that you know where this cloud data will be stored, to prevent potential GDPR induced fines or costs for cloud repatriation.
Second – prevent repatriation by deciding which data belongs where
Once your data has been located you need to organize it. Which data is safe to store in the cloud, based on where and how the cloud data is located, and which data isn’t? According to our newly released report Nordic Data Center Trends 2020: Riding out the Storm, 23% of Danish, 14% of Swedish, and 13%of Norwegian organizations have or are planning to repatriate workloads from the cloud. This could be caused by technical complications, security, and compliance issues, or higher than expected costs. Whatever the reason for repatriation is, it is clear that setting your cloud strategy and defining the needs for your data storage and management is key to prevent potentially costly future repatriation.
Third – create the perfect mix of cloud and colocation
Once the above steps have been taken you need to find the best solution for placing the data that you don’t want to be handled by a public cloud service. As the ISG report shows, colocation is becoming increasingly popular. This is probably because quality colocation offers a scalable, sustainable and cost-effective solution for data housing. So, the last step of enabling a multi-cloud strategy is finding the right colocation for the data that you don’t want in a public cloud, but that needs to be housed in a way that meets the demands of digitalization.
At DigiPlex we provide secure and fully serviced IT housing, as well as the connectivity you need – to users, partners and clouds. This is delivered in a variety of ways to meet your needs. We take care of the space, power, cooling, and physical security. In essence, you purchase the data center as a service, with a committed service level agreement (SLA), a predictable monthly fee and the scalability that allows your footprint to change in line with demands. You still have full control, as you maintain and operate your own IT resources.
With DigiPlex you house your critical IT environment at a dedicated, reliable, secure and sustainable facility with all the connectivity your business needs to succeed. Both Microsoft Azure ExpressRoute and Amazon Web Services’ AWS Direct Connect have chosen to establish points of presence (PoPs) at our data centers, and through our partners, e.g. MegaPort, we also offer direct, secure and on-demand access to their global ecosystems of service providers, including leading cloud service providers such as Google Cloud Platform and Oracle Cloud.
Read more about our facilities, the benefits with DigiPlex colocation and discover the development of Nordic digitalization in our report Nordic Data Center Trends 2020: Riding out the Storm.
Article by Rickard Hilmersson, Head of Sales Nordic at DigiPlex