80% of businesses fast-track digital transformation
A massive 80% of businesses in 18 countries have fast-tracked their digital transformation plans as a result of COVID-19.
Dell's Digital Transformation Index report is the first global examination that measures business behaviour following the recent pandemic. Switching to advanced technical solutions to enhance business performance, flexibility, and agility, has been seen as a driver for recovery by the majority of businesses, 80% of whom, sped up their digital transformation programmes.
A further 79% of organisations are re-inventing their business model to cope with the uncertainty and changes reaped by the resulting economic downturn and altered commercial climate.
The report also shows that Digital Leaders (organisations that have a mature, digital infrastructure) have risen in number by 6%. The number of Digital Adopters (companies at a transitional but functional digital stage) rose from 23% in 2018 to 39% in 2020, and Digital Laggards (businesses that don’t use digital solutions) have dropped by 6%.
The use of emerging technologies is also popular, with, 82% of respondents envisioning and increased usage of XR (Extended Reality) for training purposes, while 85% believe Artificial Intelligence and data models will predict potential crisis. A further 78% said Blockchain will create a “fairer” economic playing field.
According to Dell’s data, the biggest challenges organisations have faced in the restructuring process, are logged as data privacy and cybersecurity problems, inadequate resources, and difficulties in extracting insights from data.
Echoing Dell’s findings, another looked at the speed in which companies have adopted digital transformations. It concluded that swift changes in infrastructure were a far more efficient way to handle the crisis than a more methodical approach, stating, “In discussing the COVID-19 pandemic with senior executives, a recurring theme has been how quickly and severely it has affected organisations, forcing them to respond with extraordinary speed and vigour. “Slow, but steady” doesn’t work, given the dynamics of a pandemic. By contrast, prior waves of digital transformation have included more opportunities for experimentation built around scalable, but carefully planned, pilots.”
Dell’s report also shows that pre-pandemic, businesses focused on investments in foundational technologies, rather than emerging technologies. However, now most organisations recognise the importance of an agile and scalable architecture that has in-built contingency strategies.
However, problems that seemed less important four years ago have now become imperative. For example, in 2016, Dell's annual study shows that data privacy and cyber protection, which was the fifth most crucial element for companies, is now the number one concern.
Lack of budget and resources to implement the necessary changes is the second biggest challenge, followed by useful forecasting from insights extracted by current data.
Remarking on the findings, , Dell Technologies said, "We've been given a glimpse of the future, and the organisations that are accelerating their digital transformation now will be poised for success in the Data Era that is unfolding before our eyes.”
3 ways crypto mining is impacting the data centre industry
Around the world - particularly in Russia, Eastern Europe and China - the global rise of crypto currency values has been driving an en masse industrialisation of the mining process. The trend has been bubbling away for several years, as the home mining rig has largely found itself edged out by hyperscale server farms comprising some of the largest data centres anywhere in the industry - all designed to mine crypto.
The demands placed on a facility built and run as a mining operation are somewhat different to those placed on a hyperscale cloud facility or enterprise data centre. Reliability isn’t so much of an issue; if a mine goes down for a few hours, money is lost, but your data centre won’t take half the websites in Western Europe down along with it.
On the flipside, density and cooling are much, much more important. To make a crypto mining operation profitable, you need to be harvesting more crypto currency (be it Ethereum, Dogecoin, or the perennial Bitcoin) than you’re paying for electricity by a significant margin. As a result, some of the most efficient cooling and hyper-dense rack architecture from the past few years - like two-stage liquid cooling - has originated as a crypto mining solution. Now, hyperscale cloud operators in particular are recognising the benefits of these innovations and applying them to other aspects of the data centre industry.
1. Liquid Cooling
Crypto data centres have always been as dense as possible, with their racks running at maximum capacity all day, all year round. By contrast, the average enterprise or cloud data centre isn’t necessarily running at peak capacity 24/7; workloads fluctuate with demand. However, as that demand has skyrocketed over the past year in particular, cloud and enterprise operators have looked to crypto’s preference for liquid cooling as a way to run data centres closer to the ragged edge of performance than ever before.
One example of this is LiquidStack. The Hong Kong startup makes a revolutionary two-phase liquid cooling solution for data centres, which was developed over a number of years inside Bitfury, one of the world’s leading crypto miners. “Bitfury is sharing our knowledge with the global data center community and we are excited that Microsoft and other internet giants can benefit from our years of experience and investment to best practice liquid cooling,” said Joe Capes, CEO of LiquidStack in an interview with Data Centre Magazine.
Now, LiquidStack is going mainstream, with substantiated rumours that Microsoft is looking to adopt their DataTank solutions across its ever-expanding portfolio of hyperscale cloud regions.
2. Denser HPC
One of the issues that liquid cooling solves is how to create ultra-dense server racks that can function at high temperatures. Crypto miners have been grappling with this problem for about a decade now, and the lessons they’ve learned are being happily adopted by the burgeoning data centre HPC market - which is swelling in response to greater AI adoption and increasingly-sizable data sets.
With the density that mining rigs can achieve, server architects are cramming hundreds of kilowatts into individual racks - although it should be noted that this is still relatively rare. A 2020 survey from the Uptime Institute still found that the average density of data centre racks was growing rapidly, however.
“We expect density to keep rising. Our research shows that the use of virtualization and software containers pushes IT utilization up, in turn requiring more power and cooling. With Moore’s law slowing down, improvements in IT can require more multi-core processors and, consequently, more power consumption per operation, especially if utilization is low. Even setting aside new workloads, increases in density can be regarded a long-term trend,” said the report.
In 2020, average rack densities of 20kW and higher became a reality for many data centre operator.
3. Sustainability Concerns
Now for the more worrying news. The industrial scale and massive power consumption inherent to the crypto mining business - and the negative attention that miners are now starting to receive from government - could point towards a concerning future for data centre operators in the wider industry.
Last week, the Chinese government announced that it would open an inquiry into the participation of Beijing’s largest data centre operators - which include the country’s three largest telecom firms - in crypto mining. At a time when the PRC government is attempting a significant reversal of its approach towards sustainability, the significant power draw of crypto mining activities may be one more hurdle than China cares to deal with.
The Indian government is mulling a blanket criminalisation of all crypto mining in the country and, in the US, the State of New York is also looking into tightening regulatory restrictions on the industry.
While crypto mining data centres are not the same as cloud or enterprise facilities, operators should be careful lest the ire of lawmakers be the latest trend to make its way from the crypto sector into the mainstream.