Enterprising Developments

3 Reasons the 'Traditional' Data Center is Going Away

Joe McKendrick
Insurance Experts' Forum, January 3, 2013

Will 2013 be the year we start to see traditional data centers whither away? With the rise of ever-more dense processors, cloud computing and continuing consolidation, it's very likely that data centers will start visibly shrinking and reshaping in the year ahead.

1) Big data, smaller processors: IT author and Notre Dame professor Brian Profitt, for one, sees 2013 as a watershed year for data centers. In a recent article at ReadWriteEnterprise, he says big-data software and lower-cost, ARM-based systems-on-chips are making large traditional data centers unnecessary.

Profitt observes the focus of enterprise activity is increasingly becoming more distributed, moving to “Big Data”—semi-structured or unstructured data pouring in from the Web, devices and systems—which will be managed through commodity Hadoop clusters, closer to the data sources. In addition, more powerfully packed processors will be able to handle these workloads at the edges of enterprises.

2) Cloud: Confidence is growing in cloud computing approaches. It's possible that newer applications and workloads will be assigned to public cloud providers, thus reducing the growth rate of on-premises data centers. In addition, there will be more growth in private cloud implementations. While this means data centers aren't going away anytime soon, it will also serve to reduce redundancy in many insurance organizations—there will not be a need to maintain several data centers across various business units, except for business continuity purposes.

3) Consolidation: This is a trend that has been underway for serveral years now, and continues to accelerate. Employing strategies such as cloud and virtualization, the U.S. federal government has already closed 381 of its 2,900 data centers—and intends to close 800 more by 2015. Many of the largest insurance carriers are employing similar strategies, and have already been consolidating and closing disparate centers.

It's worth mentioning that data centers aren’t going away anytime soon—they’re being reshaped, repurposed, and re-energized as new types of resources to carriers' operations. Like everything else, they’re tasked with running smarter, with smaller footprints.

Joe McKendrick is an author, consultant, blogger and frequent INN contributor specializing in information technology.

Readers are encouraged to respond to Joe using the “Add Your Comments” box below. He can also be reached at joe@mckendrickresearch.com.

This blog was exclusively written for Insurance Networking News. It may not be reposted or reused without permission from Insurance Networking News.

The opinions of bloggers on www.insurancenetworking.com do not necessarily reflect those of Insurance Networking News.

Comments (1)

Interesting thought.Read a whitepaper on this very topic "Y2K 12 Integrating next generation technology to transform your business" it offers good information on integrating various systems and migrating to new technology .Readers will find it useful @ bit.ly/S8p1W4

Posted by: Jayashree S | January 9, 2013 4:14 AM

Report this Comment

Add Your Comments...

Already Registered?

If you have already registered to Insurance Networking News, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.

Blog Archive

How Insurers Can Develop Thoroughly Modern Mainframes

The user experience can make or break an application. Here are five ways to measure whether itís positive or negative.

The Peer-to-Peer Economy and the Uberization of Insurance

Insurance is about risk sharing, so what better model to bring in technology and make that risk sharing as efficient and effective as possible?

Rethinking Commercial Lines Underwriting Automation

The value an insurer can achieve from the powerful combination of a modern policy system and a complete suite of advanced underwriting solutions will far outweigh any effort involved.

Students are Pushed to Look Past Obstacles, and so Should We

Student teams, in the space of a few weeks, developed a variety of fresh ideas leveraging unique technologies that could help build products and services for insurance customers.

The Best Policy Administration System I Have Ever Seen

So many systems we view look like they screens were designed by a programmer and, worse, could only be used by a programmer.

Living with the Internet of Things (and crowd funding)

The Internet of Things has itís teething problems.