Blog

The End of Data Centers by 2020? Hold That Thought

Joe McKendrick
Insurance Experts' Forum, January 27, 2014

The data center only has six years to live.

That's the prediction of Silicon Angle's David Coursey, who points out that “the cost of maintaining a data center is rapidly becoming more than what it would cost to outsource.”

The cloud will be replacing on-premises data centers en masse over the next few years. Coursey observes that there is little to no reason for companies to support their own servers and storage arrays. Plus, the allure of cloud and virtualization is too strong to resist:

“Once you’re virtualizing, it is only a matter of time until the light bulb of 'we can virtualize anywhere' goes off over someone’s head. That’s when plans start being made for what happens to the space where the data center now resides. And that’s the beginning of the end of the data center as we know it.”

There are plenty of companies that will continue to hang on to their on-premises applications, Coursey adds. They may have unique mainframe applications that the cloud can't replace — yet. This is certainly the case within the insurance industry, where mainframes are still at the core of many policy administration, claims management and underwriting systems.

As on-premises data centers fade from the scene, they will be replaced by “a collection of switches, gateways, wireless LAN and some sort of backup for the Internet connection the company relies upon to reach the cloud,” Coursey says.

While Coursey's predictions make sense, it's important to remember that many similar predictions over the years have not kept pace with the realities on the ground. For example, predictions of the mainframe’s demise did not pan out, as the machine evolved from a proprietary big box to an open server architecture that supports multiple operating and cloud systems. It's likely that data center offerings also will evolve to cater to organizations that need on-premises footprints, perhaps with a hybrid cloud type of facility.

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 (0)

Be the first to comment on this post using the section below.

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

Putting Your Investments Where Your Transformation Is: Part 2: Optimizing Your IT Investments Portfolio

Sam Medina continues a 3-part series on Transforming the IT Investment Budget in order to fund new programs and initiatives without the necessity of additional capital expense.

Boosting Performance with Integrated Underwriting Tools

A unified, comprehensive platform can help underwriters perform their jobs more efficiently — and profitably.

Opinion: Halbig Decision Creates New Level of Uncertainty for Obamacare

Time will tell if the Halbig decision remains viable. But in the meantime, a new level of uncertainty has been injected into the process.

Apply Mindfulness to Leadership

Managers can benefit from applying this theory both to their career aspirations as well as to interactions and expectations of staff.

Apple's Way: Succeeding in the Enterprise Without Even Trying - Part 3

Today's data centers are doing far more with much smaller footprints.

CIOs: "We Don't Have Enough People to Run Our Mainframes"

Insurers will be competing with other industries for both legacy and “new IT" talent.

Advertisement

Advertisement