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FSI CIOs: Choosing the right data centre is your most important decision right now

Keith Murray, Managing Director at IO | March 22, 2016
Keith Murray of IO discusses how CIOs and IT leaders need to take stock of how data is used and stored as well as how scalability and sustainability affects their businesses.

This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter's approach.

The Singapore government will unveil Budget 2016 on 24th March, and for all intents and purposes, it is going to be one of the most difficult budget reports to deliver in recent years. Volatile stock markets, lower exports, and a challenging global environment are causing many experts to predict that growth will only average between 1 to 3 percent.

In particular, economists are predicting that these factors will bring stronger headwinds for the financial services industry in 2016. Financial technology or FinTech businesses and startups are also challenging how traditional financial institutions look at lending, payments, and infrastructure. This disruption to more traditional ways of banking is growing at a breakneck pace, with investments in financial technology ventures tripling from about US$4billion in 2013 to US$12 billion in 2014, according to Accenture.

While certain banks and financial institutions are restructuring or cutting back on IT investments in order to stay competitive, some are also leveraging technologies such as cloud, big data and mobile technology to be more efficient, enhance offerings and engage consumers better.

At the same time, business leaders are starting to realise that data centre and infrastructure investments are becoming a source of differentiation. In fact, the banking, financial services and insurance verticals are expected to have the second largest combined market share of the data centre construction market for the next few years, with only the IT sector being larger.

So as CIOs and IT leaders start to take stock of how they store and use data, there are two important factors they will need to carefully consider: how easy it is to scale up or down, and how to stay lean and green.

Control and scalability
It is an understatement to say that the digital universe is expanding quickly. We now generate as much data in two days as was generated between the dawn of civilisation and 2003. The impact of big data and the Internet of Things has been extraordinary and it has only just begun.

With this data explosion comes increased demand for data centre capacity - demand that many data centres are not equipped to accommodate. What's the best way for IT leaders to respond to this demand? The answer lies in a data centre solution that matches infrastructure density to application requirements and can scale to meet changing demands.

This is especially important for small and mid-level players in the industry, like regional banks, brokerages, asset management firms, and advisors. Adopting a flexible and scalable data centre strategy can help them leapfrog larger organisations that have greater IT complexities.

 

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