Digital Asset Allocation Strategy and Web 3.0

In this edition of Voices of the Industry, JP Laqueur, Senior Vice President of Marketing at DataBank, examines how Web 3.0 has created the need for a strong Digital Asset Allocation strategy.

We have officially entered a third era of the internet. Today, Web 3.0 is driven by an exponential increase in mobile bandwidth (5G), the rise of hyper-local and latency-sensitive applications, and the decentralization and shift of computing resources to the edge—as close to end users as possible.

In order to respond to Web 3.0—and transform business models to capitalize on the opportunities it presents—companies must now examine their existing infrastructure, related interconnections, and overall technology strategies.

For example, infrastructure is now becoming much more software-driven. We’re moving away from traditional telecommunications-based models, where assets and connections were once physical entities, provisioned slowly, and managed by the provider. Now, thanks to digitally-driven models, these same assets are increasingly virtual, provisioned instantly and on demand, and managed by the users themselves.

At the same time, infrastructure is clearly moving to the edge in order to provide faster, better services to customers, consumers, and end users. But it’s important to note that the edge is not simply a matter of geography or distance; instead, it’s a ubiquitous edge that can exist in different modes. Sometimes the edge will be a geographic one, extending from Tier 1 cities to more rural markets. But it may also be application-specific, depending on a company’s core business and application latency-sensitivity, which can vary depending on whether it is providing content, networking, or computing.

“The combination of a more software-centric and edge-focused Web 3.0 architecture will change the way IT leaders deploy and manage their infrastructure.” JP Laqueur, Senior Vice President of Marketing at DataBank

The many discrete and disparate infrastructure components and vendors that need to be managed individually, such as servers, applications, data storage, specialized systems, will ultimately merge into a single pool of programmable resources—that can be quickly turned on/off, scaled up/down, and managed from the palm of their hand.

While Web 3.0 will provide these benefits in the years ahead, for many companies, the question still remains: How do we change our infrastructure model and approach to prepare for these changes today?

Which Digital Asset Allocation Strategy Is Right for You?

At DataBank, we believe the answer lies in a concept we call the Digital Asset Allocation model. The model helps make sure IT infrastructures are on the right platforms, in the right place, and available at the right time to meet the needs of users and customers.

The Digital Asset Allocation model is similar to the way we think about managing financial assets. We seek to achieve the best outcomes by considering factors such as objective, risk, potential returns, overall performance, and more, all so we can invest in the right mix of investment vehicles.

A company’s Digital Asset Allocation strategy is no different. But instead of investment vehicles, the company considers what type of infrastructure model is best suited to its needs and can position the company for maximum long-term success. In some instances, that may be colocation in a highly-interconnected data center in a Tier 1 market. Or it may be virtual machines in a hybrid public-private cloud setting. Or perhaps even bare-metal servers in a modular data center beneath a 5G tower in a rural setting.

Data Centers: The Foundation of a Digital Asset Allocation Strategy

There are three core components at the heart of any Digital Asset Allocation strategy and companies can find all three by partnering with a modern data center partner such as DataBank: secure physical colocation space, powerful interconnection capabilities, and comprehensive edge reach.

1. Modern data centers provide the most secure and compliant physical environment for data, applications, and the overall compute infrastructure. They provide the four core platforms of any modern IT infrastructure—colocation, cloud, network, and storage—as well as a range of managed security and compliance services that are often the most challenging and time consuming for IT organizations to implement and manage themselves (e.g.,IDS/IPS, log management, compliance reporting).
2. The right data center partner can also provide a highly interconnected ecosystem that gives companies the ability to reach a wide range of networks, third-party applications, and cloud environments. When combined with a management portal, users can connect workloads and services to virtually any facility, network, or partner for a more agile, productive infrastructure approach.
3. Finally, companies should seek a data center partner with multiple edge platforms and broad reach. An effective Digital Asset Allocation strategy will require a diverse footprint that extends to Tier 2 and Tier 3 markets because these will often be the first places that applications move to be closer to end user populations. But there also needs to be a modular data center solution in place that can extend to rural or Tier 4 markets where applications with extreme latency-sensitivity can be located as close to 5G cell towers and end users as possible.

Develop the Winning Digital Asset Allocation Strategy

Web 3.0 clearly presents significant new opportunities, but only for those companies that can transform their infrastructure and quickly align with new advancements in technology. To prepare for this new world, start thinking about your digital assets as you think about your financial assets, and seek a modern data center partner who can help you develop a Digital Asset Allocation strategy. This approach will yield the best possible mix of physical compute environments, proven interconnections, and edge capabilities, allowing you to maximize results and capitalize on Web 3.0—and beyond.

This article was written by JP Laqueur, Sr. VP of Marketing at DataBank. Databank’s data center platform was engineered to provide the flexibility, security, and uptime the industry requires. Contact DataBank today to learn more.