Cryptocurrency has taken the tech and finance world by storm and continues to take off reaching a milestone valuation of $700 billion. However, this ‘bitcoin boom' will begin to have a direct impact on several industries and company operations including how data centers will manage this surge in power. Jeff Klaus, GM of Intel Data Center Management Solutions, believes companies will need to adjust their data center strategy to tackle the impact cryptocurrencies have on power supply head on.
VMblog: How is the dramatic increase in cryptocurrencies
affecting data centers today?
Jeff Klaus: In recent years, data centers
have been stretched to their capacity due to the rise in cloud and edge
computing, creating an increase in power demands all too familiar to data
center managers. While cryptocurrency companies only make up a relatively small
percent of the data center market - for now - what's shocking is the immense
amount of energy cryptocurrency creates for the industry. Understanding the
potential energy demands of the growing cryptocurrency industry must stay top
of mind for data centers manager as they recognize the need for high
performance hardware to solve computational algorithms at a high-speed with
accuracy and efficiency.
VMblog: How do data center's strategies need to shift to take
on this heightened workload?
Klaus: The realization that
blockchain could one day become a more prominent technology has led data center
operators to rethink their strategies and invest in advanced tools to help manage
energy usage. With bitcoin alone forecasted
to use as much electricity as the whole of the United States by the summer of
2019, it's in their best interest to invest in optimizing existing servers
rather than adding more out of fear of cryptocurrency's power demand. In order
to do this, data center managers need access to granular data that allows
real-time power and thermal monitoring as well as health monitoring and
utilization. Not only will data centers be equipped to handle the power cryptocurrency
demands with these insights, but this will also shift the overall strategy by prioritizing
performance quality first versus server quantity.
VMblog: Are there green alternatives to offset cryptocurrency's
high energy demand?
Klaus: While cryptocurrency energy
demands may cause some to worry, an increased focus on cleaner operations will
encourage data centers to turn to renewable energy sources to keep up with
power demands. Beyond having a clear understanding of energy usage and
leveraging data to achieve power optimization, cryptocurrency is spurring the
creation of energy conscious mining companies. For example, Standard American
Mining teamed up with a tire "thermal demanufacturing" company, PRTI, to burn
old tires as an energy source creating the world's first waste-to-energy
cryptomine. While others may look to different alternatives like solar panels
or immersion cooling, it's clear that green alternatives are the on their way
to becoming the new industry standard.
VMblog: Even with Bitcoin's growing popularity,
there is still hesitancy when it comes to cryptocurrency adoption and
integration. What do you think the future holds for cryptocurrency and what
does that mean for data centers?
Klaus: With the market value of decentralized
cryptocurrencies like bitcoin continuing to fluctuate, the future is uncertain.
However, investments in blockchain capabilities have created a new system for
securely tracking data which we will likely continue to see permeate and
overhaul various industries. As the data center industry prepares to facilitate
blockchain operations, data centers will be pushed to adapt and innovative much
like the industry did with the IoT movement.
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About Jeff Klaus
As General Manager of Intel® Data Center Management
Solutions, Jeff Klaus leads a global team that designs, builds, sells and
supports Data Center Management software solutions through an extensive
distribution network. Since joining Intel in 2000, Klaus built and maintains
the largest global ecosystem of middleware solutions through Server Hardware
OEMs, Software Infrastructure Management Providers and Cloud Service Providers.
As a leader in the Data Center infrastructure industry, his
group is responsible for Intel® Virtual Gateway, Intel® Rack Scale Design
Manager, Intel® Resource Management Solutions and Intel® Data Center Manager
(DCM), the only software that provides real-time, server-level
telemetry data and power management across a wide range of data center servers
and IT devices.
An active member within the
Software Defined Solutions space, Klaus serves on the Board of Directors for
the Green IT Council and has presented multiple keynotes at leading industry
conferences, including Gartner Data Center,
AFCOM's Data Center World, the Green IT Symposium, and the Green Gov
Conference. As a thought leader within the DCIM community Klaus regularly
contributes articles on key data center topics and trends in Forbes, DataCenter
Dynamics, Mission Critical, Data Center Post, IT Business Edge, Data
Center Knowledge, Information Management and Data Centre Management.
Klaus earned
his BS in Finance at Boston College and his MBA in Marketing at Boston
University.