As Cloud Growth Accelerates, Data Center Supply Chain Adjusts

April 27, 2017
Cloud builders’ push to deploy capacity more quickly has implications for the data center supply chain. Our Executive Roundtable discusses how the industry is responding.

Today we continue our Data Center Executive Roundtable, a quarterly feature showcasing the insights of thought leaders on the state of the data center industry, and where it is headed. In today’s discussion, our panel of experienced data center executives – Jeff Klaus of Intel DCM, David Knapp of Chatsworth Products, Sean Icara from Digital Realty, and Vertiv’s Gary Niederpruem – how the focus on speed to market is affecting the data center supply chain.

The conversation is moderated by Rich Miller, the founder and editor of Data Center Frontier.

Data Center Frontier: The largest cloud platforms are seeking to deploy data center capacity at an accelerated rate. What has this meant to the supply chain for data center delivery?

GARY NIEDERPRUEM of Vertiv

Gary Niederpruem: Cloud providers are deploying data center capacity in a number of ways. Sometimes they’re building in greenfield sites. Sometimes they retrofit existing facilities. Some are using colocation. A growing trend is the deployment of computing capacity at the edge, creating a distributed cloud network that can reduce network latency by managing loads closer to consumers.

That sort of unpredictability presents challenges across the supply chain. You can manage that unpredictability in three ways:

  • Strive to know your customers and their plans intimately. That allows you not only to react quickly when they make a decision, but to be involved in that decision and help them plan and grow in ways that meet their needs today and prepare them for the unexpected tomorrow.
  • Design solutions with modularity, flexibility and speed in mind. This allows technology providers to move as fast as – and in many cases faster than – their customers.
  • Streamline the supply chain and service capabilities to make them flexible and nimble. For example, Vertiv is a large, global company, and we work daily to make sure that reach is an asset rather than an impediment to speedy delivery. When customers have urgent needs anywhere in the world, well-prepared global service teams can meet those needs with the appropriate resources and expertise almost immediately.

DAVID KNAPP of Chatsworth Products

David Knapp: Traditionally, the data center was fitted with racks, the network was cabled and then computers installed. All were separately sourced and separately installed.

For cloud, the basic design concept is standard, modular building blocks, focused at the rack- or row-level, instead of individual components. Cloud operators use integrators to deliver a complete rack full of equipment, preconfigured, cabled and ready to power. To do so, most operators have standardized on a few compute configurations and specific rack configurations. Facebook even shared those designs in The Open Compute Project (OCP), which is now also a separate marketplace.

For facilities, this means overhead cable tray and ductwork for airflow management, which is still sourced traditionally as construction materials, is installed ahead of racks. This speeds deployment because the facility is fitted in parallel to the compute being configured, instead of the traditional serial approach.

SEAN IRACA, Digital Realty

Sean Iraca: Cloud service providers are evolving their architectures and infrastructures to support the high growth and performance demands, resulting in larger colocation demands across all of the architectural layers of their infrastructure. This is blurring the traditional lines between scale and colocation, creating net-new opportunity for datacenter providers

Additionally, as enterprises look to leverage the advantages of cloud-based services, infrastructure that has traditionally been hosted in basements is being redeployed in colocation facilities that provide the security and close proximity required to utilize cloud services. This is changing the way customers are utilizing datacenter infrastructure to help transform their IT infrastructure and there is increased reliance on cloud computing. As IT adoption turns cloud from an option to a critical asset, this is driving increased requirements for secure, high performance and reliable access to those cloud environments.

JEFF KLAUS of Intel

Jeff Klaus: Two results of this immediately come to mind. First, it squeezes the existing market. Second, it changes how aggressive groups have to be in site selection and technology decisions.

We can also see more concentrated effects to industries like DCIM, where this accelerated deployment timeline has required an expedited decision making process, especially when it comes to choices and direction around hardware purchases, installation, and management.

RECAP: The Data Center Frontier Executive Roundtable, 1Q 2017

Keep pace with the fact-moving world of data centers and cloud computing by following us on Twitter and Facebook, connecting with me on LinkedIn, and signing up for our weekly newspaper using the form below:

About the Author

Rich Miller

I write about the places where the Internet lives, telling the story of data centers and the people who build them. I founded Data Center Knowledge, the data center industry's leading news site. Now I'm exploring the future of cloud computing at Data Center Frontier.

Sponsored Recommendations

How Deep Does Electrical Conduit Need to Be Buried?

In industrial and commercial settings conduit burial depth can impact system performance, maintenance requirements, and overall project costs.

Understanding Fiberglass Conduit: A Comprehensive Guide

RTRC (Reinforced Thermosetting Resin Conduit) is an electrical conduit material commonly used by industrial engineers and contractors.

NECA Manual of Labor Rates Chart

See how Champion Fiberglass compares to PVC, GRC and PVC-coated steel in installation.

Electrical Conduit Cost Savings: A Must-Have Guide for Engineers & Contractors

To help identify cost savings that don’t cut corners on quality, Champion Fiberglass developed a free resource for engineers and contractors.

Shutterstock, courtesy of Blueprint Supply Chain
Source: Shutterstock, courtesy of Blueprint Supply Chain

Preventing Loss and Damage to Mission-Critical Gear Within Your Construction Supply Chain

Joey Wagner of BluePrint Supply Chain explains why it's critical to have a reliable quality assurance program and consistent reporting across the entire construction supply chain...

White Papers

Get the full report

The Affordable Microgrid: Securing Electric Reliability through Outsourcing

Feb. 12, 2022
Microgrids, which use controllers to connect multiple power generation and storage sources, can provide electric reliability but they can also be too complex and costly for businesses...