In response to unpredictable costs and other challenges with the public cloud, companies are increasingly moving from cloud to lower their total cost of ownership (TCO)
. Enterprises with consistent and large workloads often benefit from colocation options built into their workload strategy because of the lower TCO that this approach drives in addition to the often more predictable and manageable cost model. In 2023, an influx of cloud native companies announced a move away from public cloud providers, citing higher, unpredictable costs and unrealized gains. We will continue to see more examples of cloud repatriation through 2024.
A cloud adjacent environment is just that – colocation and on-premises deployments placed near the cloud providers. Aligning workload requirements to the desired performance, scalability, and security at a lower effective cost, cloud adjacency pairs cost savings with efficient connectivity, higher performance, and lower latency. In many cases, this includes a tailor-made combination of cloud and colocation to get the best of both. We expect cloud adjacency, often deployed in conjunction with hybrid IT and other trends we list here, to change the way the industry plans infrastructure development in 2024.
Bare metal is making a comeback in a big way for its cost and performance advantages. For enterprises seeking the cost predictability, high performance, and enhanced security of colocation with the flexibility and scale of the cloud, bare metal is the ideal solution. It provides users with the flexibility to choose their software, experience greater control with hardware-level access, improve security, and achieve more predictable costs. New enterprise-grade bare metal solutions are on the rise, including our own Evocative Metal
, and are poised to make a substantial impact on the industry in 2024.
By now, many of us have been exposed to some of the advanced AI and ML technologies in our workplaces and everyday lives, but not everyone understands that those technologies require a supporting data center infrastructure to thrive. AI applications require high-density compute capabilities, which can place a strain on compute capacity, cooling, and power in the data center. Some colocation facilities are designed with advanced power and cooling to accommodate new AI applications, and many more will need to make significant investments to prepare for the growing demands of AI expected in the coming years. Going forward, as the breadth of AI technologies and applications expand, data center facilities must grow and operate more efficiently to accommodate these increasing resource requirements.
The digital infrastructure industry is facing a period of tremendous change marked by transformative technologies and the requirement to contain unpredictable costs. Enterprises will need to embrace the ongoing shift to hybrid IT and should expect to continuously re-evaluate their IT infrastructure to ensure workloads are being optimally managed. Assessing individual workloads for cost, security, control, and edge delivery and placing each in the environment that best fits the need will help prepare companies for the next generation of technologies and applications. Many organizations won’t know where to start. They can leverage the digital infrastructure providers like Evocative
to plan their hybrid IT strategies with a portfolio of enterprise colocation, network, and bare metal solutions.