Data
gravity, or the propensity for bodies of data to draw an expanding swath of
applications and services into closer proximity, has been identified as a key
megatrend impacting enterprises and service providers over the next decade,
according to recently published research. Data gravity may affect an
enterprise's ability to innovate, secure customer experiences, and even deliver
financial results on a global scale. The Data Gravity Index measures the creation,
aggregation and private exchange of enterprise data and examines its impact on
the Forbes Global 2000.
Leaders
at London-based Aon plc, a global professional services firm specializing
in financial risk-mitigation products and number 485 on the Forbes Global
2000, believe that data gravity, and its impact on macro factors such as
enterprise data stewardship and regulatory developments, is a megatrend that
will present significant challenges for global businesses.
"Understanding data gravity and its impact on our IT infrastructure
is a difference-maker for our operations and will only become more important as
data continues to serve as the currency of the digital economy," said Munu
Gandhi, Aon's VP of Core Infrastructure Services. "As enterprises
become more data-intensive, there's a compounding effect on business points of
presence, regulatory oversight and increased complexity for compliance and data
privacy that IT leaders are now being forced to solve."
Principal
Research Analyst Eric Hanselman at 451 Research, part of S&P Global Market
Intelligence, points to the looming impact of data gravity and the necessary
context the "Data Gravity Index" provides. "Data gravity
is the idea that data is an anchor that is often hard to move, especially as
data volumes grow. If that growth takes place in public or private clouds
that are not easily accessible by the enterprise using them, the full value of
that data can't be realized, and the enterprise will be trapped into spending
exorbitant sums to free it."
Customer
Experience, Profitability at Stake
"Data
is growing at an accelerating rate due to the growth of IoT, AI and social
mobile analytics," said Tony Bishop, data center industry pioneer and
SVP, Platform, Growth and Marketing at Digital Realty,
which backed the study. "There's a good story to tell here.
But there's another side to the story, too, with growth resulting in the
compounding force of data gravity. Unchecked, data gravity can lead to
limited innovation, poor customer and employee experiences, increased costs,
information silos, compliance issues, security concerns and slow
decision-making for the enterprise. The 'Data Gravity Index'
provides quantitative insight to help customers understand the dynamics of data
gravity and turn it into a data-centric opportunity for their
business."
Digital
Realty Chief Technology Officer Chris Sharp added, "Most
enterprises and service providers are just at the beginning stages of
understanding data gravity's potential impact on their innovation, customer
experience, and profitability, but they need to be designing for it now.
The study is designed to give CIOs, chief architects, and infrastructure
leaders insight into the phenomena causing architecture constraints as well as
a blueprint for addressing them."
The
term data gravity was coined in a 2010 blog post by Dave McCrory, who led
the research behind the Data Gravity Index. The groundbreaking analysis
sheds light on implications for the acceleration of enterprise digital
transformation spurred by data gravity.
Key
findings show:
- Data Gravity growth is expected to double annually
through 2024 as data stewardship
drives global enterprises to expand their digital infrastructure capacity
to aggregate, store and manage the majority of the world's data.
- Enterprises are approaching quantum computing levels of
data creation, processing and storage. The Forbes Global
2000 enterprises across the 21 metros analyzed are projected to create
data at a rate of 1.1 million gigabytes per second by 2024, will be
required to add 8.96 exaFLOPS to process new digital workflows, and are
expected to increase data storage needs by 15,635 exabytes annually. Data
location will become exponentially more important to global enterprises as
they endeavor to meet compliance requirements by maintaining local copies
of critical data.
- Data Gravity Intensity is accelerating across all
regions. Data Gravity, as measured in
gigabytes per second, is expected to more than double annually across the
EMEA, APAC and North America regions through 2024.
The
top six metros expected to generate the fastest growth from 2020-2024 include (in
descending order) Singapore, Hong
Kong, Dallas, Sydney, Seattle, and Tokyo
- Singapore is a critical business and data hub for
global enterprises in the APAC region, given its pro-business policies and
diverse connectivity options.
- Hong Kong is an international financial and trade
hub and connectivity gateway for global enterprises between APAC and the
rest of the world.
- Dallas is a preeminent business hub for global or
regional headquarters and provides a connectivity gateway for global
enterprises.
- Sydney serves as a global business hub with a
significant global enterprise presence, in addition to serving as a rich
connectivity gateway.
- Seattle is home to leading global cloud providers
as well as a connectivity conduit between North America and
the Asia Pacific region.
- Tokyo is one of the largest economies in the
world, a business and financial hub for global enterprises and drives a
significant volume of data creation.
Data-Centric
Infrastructure Required
The
effects of data gravity will force strategic IT infrastructure to aggregate and
maintain data, whether in public or private clouds, from the core to the edge
and across every point of business presence to control centers of data
exchange.
"The
Data Gravity Index posits that to defy data gravity, organizations must design
their infrastructure and networks in a more data-centric fashion, inverting
traffic flow and bringing users, networks and clouds to privately hosted
enterprise data," said Digital Realty Chief Executive Officer A.
William Stein. "The location of enterprise data should be a
strategic decision-and a connected community approach is needed to decide where
to put it and how to connect it at global points of business presence.
We're excited to provide our customers, and the industry at-large,
greater insight into this important challenge to help them make strategic
decisions that will unleash their digital transformation potential."
To
learn more about the "Data Gravity Index" and its findings, please
visit DigitalRealty.com/Data-Gravity-Index.