What do Cloud Service Providers want for Christmas?
In a uniquely dynamic and challenging market, what should be on every CSP’s Christmas wish list to help meet the demands of their customers?
In an ever-changing and hugely competitive market, cloud service providers (CSPs) have a constant battle to meet their customers’ demands.
As we look to 2016, new trends such as containerisation/ dockerisation and the rise of cloudops continue to gather pace. At the same time, existing trends like big data analytics continue their rise to prominence. With so much uncertainty one thing is for sure: that the market for CSPs is going to remain very competitive and challenging.
So against that backdrop, we decided to look at three data centre requirements that should be on every cloud service provider’s Christmas list, and will help set up any CSP for a successful 2016:
1.) A well-developed partner ecosystem: being able to cross connect with other connectivity partners ensures that CSPs can deliver a huge range of fast, high-quality, services to their customers. Being situated in the same data centre environment also reduces networking costs, and increases resiliency. es.
2.) Scalability: Network traffic continues to skyrocket year-on-year. According to statistics from Cisco, global IP traffic will exceed 1,000 exabytes by the end of 2016 – breaking the so-called zettabyte threshold for the first time. By the end of 2019, traffic will have reached 2 zettabytes per year. That means that by 2016, global IP traffic will stand at nearly one billion gigabytes per month. By 2019, that figure will total 2.0 zettabytes per year, or 168 exabytes each month.
In the face of those staggering traffic volumes, CSPs need scalability now more than ever. With the Internet of Things set to ramp up traffic volumes exponentially, CSPs are going to require scalable environments which can support countless data flows and support any number of new customers as they win new business.
3.) Strategic location: With the EU’s General Data Protection Regulation (GDPR) finally approved and set to come into force in 2017, and a new Safe Harbour agreement on the cards, the physical location of data - and therefore cloud services - matters more than ever before. Customers are always looking for a “safe” location for their data. The legal framework has been simplified across the EU with the GDPR, so CSPs always choose a data centre provider with a strong European presence and footprint in key European commercial hubs is a must.
As well as security and data protection, location also counts for ensuring lower cost of connectivity to key customer bases. Proximity to business and consumer centres also enables reduced latency and improved end user experience. Picking a data centre provider with these attributes also ensures simple access to Europe’s Internet exchanges and low-latency network connectivity into key hubs serving target customer groups.
There are many factors CSPs should look for in a data centre provider. Choosing a provider which can demonstrate these factors above, as well as deep knowledge of trends and upcoming shifts in the industry, will help ensure that CSPs can focus on growing their business without worrying about the infrastructure. All of this will make for a happy and prosperous 2016 for cloud service providers.