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Data centers become a hot target for expanding telecom firms

By Max Burkhalter
July 29, 2014

Several telecommunication companies have begun investing in data centers to turn around a speedy return. Streamlined data solutions offer efficiency and logistical benefits; telecom firms are taking notice. The benefits of storing data on the cloud become more apparent as virtualization enters the mainstream. As a result, more companies have realized the need for large amounts of reliable data storage.

Expanding markets result in healthy gains
Datacenter Dynamics reports that a recent study performed by the The New Telco Data Centre shows many firms investing up to $300 million into new data centers. The survey pulled data from 57 telecom companies worldwide who have already invested in their own data center infrastructure. The survey also reflected a growing interest in time-saving modular data centers and data halls designed to service the needs of international clients. Data centers are predicted to experience a revenue climb by nearly 30 percent over the next five years.

Increasedinterest in data centers is also reflected in the healthy growth of the nation's data center businesses. A recent article in Data Center Knowledge noted that industry leaders DuPont Fabros Technology and CoreSite Realty Corp have shown significant gains in the last quarter. CoreSite Realty Corp concentrates on meeting wholesale and retailstorage needs; the company posted a 14 percent revenue boost in Q2. Likewise, rival DuPont Fabros Technology reported an 11 percent increase in revenue. Both companies have nearly reached their storage limits and have invested in expanding their physical and digital storage capacity.

Even data centers serving smaller markets saw significant gains in Q2. Minnesota-based firm Datalink saw an 8 percent gain in 2014 due to increasing sales and customer demand for cutting-edge data services according to CRN. Datalink's president and CEO Paul Lidsky attributes the growing interest in data storage to clients "spending extra time evaluating newer technologies like private and hybrid cloud and flash and hybrid converged storage."

Projected growth good for industries
Telecom companies are likely to continue investing in data centers as cloud storage and virtualization become even more popular. Cloud storage is more likely to become the mainstream storage solution as the technology becomes more popular. Firms investing large storage capacity in the present are likely setting themselves up for an advantage. These companies will have greater flexibility to provide their customers with digital services and the opportunity to rent out their own data storage in the future. Telecoms will even be able to manage multiple data centers from one location with the use of remote console servers.

Console Management - Perle's wide range of 1 to 48 port Perle Console Servers provide data center managers and network administrators with secure remote management of any device with a serial console port. Plus, they are the only truly fault tolerant Console Servers on the market with the advanced security functionality needed to easily perform secure remote data center management and out-of-band management of IT assets from anywhere in the world.


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