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There are thousands of data centers worldwide, with approximately half of these in the top 20 global cities. Gartner identifies three crucial segments that Data and Analytics (D&A) corporations should strive to integrate into their 2022 strategy. The current top data center statistics represent technology, market, and business dynamics that will help companies transform uncertainty into opportunity. These key trends fall under the following categories.

Institutionalize Trust

Companies can gain substantial value from D&A by managing AI risks and streamlining connected governance across emerging ecosystems, edge environments, and distributed systems.

With more companies integrating AI into the workflow, businesses are experiencing additional constraints in comprehensively explaining or understanding their business models’ role, resulting in a lack of transparency and trust.

Gartner projects that organizations that develop reliable, purpose-oriented AI will realize that 75% of their AI innovations will succeed by 2026.  

Augment People and Decisions

D&A organizations must offer context-driven, enriched analytics developed from modular elements of the business to ascertain insights that are relevant to decision-makers. This includes strategies addressing the scarcity of analytics talent and data and prioritizing data literacy.

D&A organizations should also explore trends such as decision-centric D&A, business-composed D&A, context-enriched analysis, and literacy and skills shortfall. Corporations that effectively address the human components of D&A are more likely to succeed in the long-term than those that strictly focus on technology.  

Enable Dynamism and Diversity

The rise of AI processes, including AI engineering, drives innovation and growth while helping companies cope with fluctuations in international markets. Data sharing competencies, active, automated, metadata-oriented strategies, and AI data management draw from data fabrics.

Data sharing is now a business-oriented key performance indicator that demonstrates that a firm is achieving adequate stakeholder engagement and promoting access to data that inspires public value.

Global events such as the pandemic have created a sense of urgency in the industry to transfer data to speed up interrelated and independent commercial and public digital business value.

Remarkable Data Statistics

Everything people do online exists in data centers, which makes them an indispensable component of the economy and contemporary society.

• The global IT data center expenditure will reach $227 billion in 2022.
• The Covid-19 pandemic decreased data center infrastructure expenditures by 10% in 2021.
• The prevailing anticipation is that the global data center market will reach $105 billion by 2026.
• The top five drivers of data center demand are IoT, OTT services, digital technologies, digitization, and remote work.
• Projections indicate that data centers will consume 20% of the global power supply by 2025.

One word that describes the statistics above is growth. There are little to no signs that this trend will slow down.

There is an increasing demand for digital storage, process, and data access. The combination of a tech-savvy society and remote working trends implies a perpetual growth in the data center market size.

Data Center Industry Statistics: Industry Challenges

The statistics below reveal surprising facts about some of the top challenges in the industry.

Power Consumption

Data creation, processing, and storage currently consume approximately 1% of the world’s electricity. Some people may assume that data centers have little to no environmental impact.

However, the exponential growth projections indicate a significant increase in energy needs, ultimately affecting the global carbon footprint.

Data Security

One of the top business concerns today is data security. This also affects data centers offering storage services.

Data security exposes businesses to risks such as exposure, corruption, and unwanted data loss. Data centers handling vast amounts of information incur additional money and time-related constraints, which can be relatively demanding.

Going Serverless Before 2023

One-tenth of global businesses intend to go serverless by the close of 2022. The speed of cloud services and data center availability increases the probability of this transition. It is indisputable that data centers are reforming business infrastructure.

Sweeping Global Data Center Statistics

The following global statistics indicate substantial growth both in eco-social aspects and location aspects.

1. There are approximately 8,000 data centers in the world.

As of 2022, there are more than 8,000 data centers worldwide. Different corporations are implementing development projects in this domain.

However, supply crises and environmental concerns will likely slow construction plans unless developers invent solutions to address existing challenges.

2. Canada, China, the U.K., Germany, and the U.S. host most of the data centers in the world.

The United States accounts for approximately 2,750 data centers. Germany has 484 data centers, followed closely by the U.K. (458), China (447), and Canada (324).

3. The annual data center industry growth forecasts a 2% growth between 2019 and 2025.

The most substantial investments in the industry are expected to come from hyper-scale data centers and colocation service providers.

4. The key drivers of demand for data centers are IoT, OTT services, digital technologies, digitization, and remote work.

The growing demand for data centers is a result of the existing socio-economic trends. Covid-19 sparked the need for digitizing business processes and remote work culture. In addition, investments in hyper-specialist technologies for industrial sectors and SMEs also require access to data centers.

The role of the household in this trend relates to the integration of data-hungry technology, such as over-the-top and internet-of-things services, that supports access to media content, including online television.

Global Data Center Growth Trend Statistics

Projections indicate that the data center service industry will reach an estimated $105.6 billion by 2026, with a CAGR of more than 13.6% between 2021 and 2026. This implies the need for organizations to manage, process, and handle the rising influx of vital business information.

Enterprise Data Center Statistics

The stats below highlighted the evolution in the services data centers at an organizational level provided.

• By 2025, 75% of data generation and processing will surpass the range of cloud and traditional data centers.
• In 2020, expenditures on enterprise data centers reached $89 billion, driven by the demand for networking, storage, and modern database solutions.
• The transition to cloud services is one of the most noteworthy trends for data center providers. Industry giants such as Microsoft Azure, Google Cloud, and AWS (Amazon) benefit from this shift.

Wrap Up

The data center statistics presented above highlight the exponential need for more information. With Canada, China, and the U.S. accounting for the highest number of data centers, the need for physical space is shrinking.

Projections also indicate that in the future, we will have decentralized technology and infrastructure models, such as installations on the moon. We cannot deny the need to solve the environmental and geographic concerns resulting from the above trends.

The Benefits of Power Over Ethernet for Your Data Center

Power over Ethernet (PoE) is the infrastructure that conveys electric power over twisted-pair Ethernet cable to powered gadgets (PD), which includes VoIP phones, IP cameras, and wireless access points.

One of the advantages of PoE technology is the delivery of power and data over standard Ethernet cables, which eliminates the need for AC/DC power outlets and supplies, giving control to PD equipment.

PoE installations allow remote powering of interconnected devices since they use PoE switches. Additionally, there are fewer failure points.

Versa Technology is a corporation that combines accountability, efficiency, and innovation to provide industrial media converters, switches, and cutting-edge PoE for your advanced IT projects.

Contact us for all your computer networking needs and industrial networking equipment.

As consumers return to the brick-and-mortar shopping experience, one thing is clear: contactless retail encounters have become a focal point.  According to a recent small business (SB) study conducted by Visa, responding SB owners identified the five top areas for growth needed in 2022. These are:

1. Offering new products or services (41%)
2. Increasing social media presence (40%)
3. New online channels (33%)
4. Investing more in marketing (33%)
5. Accepting new forms of payment (32%)

And here’s what the study found was most important to consumers (outside of price):

1. Convenience (63%)
2. Good previous experience (60%)
3. Personal safety (54%)
4. Urgency for product or service (52%)
5. Accept digital payments (36%)

Many of the items in both lists above incorporate some form of the contactless retail concept.  As retailers revamp their business models to meet the needs of today’s customers, they are finding they will need to offer some type of contactless retail method(s) to be competitive.

What is Contactless Retail?

Contactless (or touchless) retail is an umbrella term that covers four separate retail concepts—so it often means different things to different people. Each of the four concepts has a distinct definition and requires unique technologies and protocols. Let’s take a look at each of these contactless retail concepts.

1. BOPIS (Buy Online, Pick Up in Store)

With BOPIS, products are ordered online from a store and are waiting at the check-out counter by the time the customer arrives to pick them up. This hands-free approach enables customers to avoid shopping in the physical store, mingling with other shoppers and store employees, and standing in line—and it saves time, too. 

2. Contactless Payment

Initially developed for security purposes, mobile wallets and tap-to-pay technology enable the public to make in-store payments without having to come into contact with germ-laden devices such as keypads and credit card readers.

3. Curbside Pickup

Curbside pickup entails ordering online or via phone, then driving to the seller’s establishment and meeting a worker waiting at the curb with the purchased goods. The hallmarks are not having to leave the car and minimal contact with others. Restaurants most commonly use this solution; however, other types of retailers offer curbside pickup as well.

4. eCommerce

ECommerce involves exclusive online retailers (like Amazon) or front-end stores (like Target or Walmart)  that offer online order-and-delivery services. With zero contact with another human being, goods can be ordered, paid for, and delivered to a user’s front door. An exciting aspect of this contactless retail concept is its recent experimentation with drone product delivery.

Contactless Retail is the Future

Statistics tell us that consumers want an omnichannel approach to shopping. Let’s take a look at some recent figures:

• 67% of survey respondents say their online purchasing has increased since the start of the pandemic
• 91% said they are likely to continue online shopping in the future.
• 42% of respondents have a preference for curbside pickup.
• 33% prefer BOPIS shopping experiences
• 33% prefer shopping in physical stores
• 80% of respondents said their overall experience with a retail company is as important as its products

The Benefits of Contactless Shopping

Contactless shopping benefits retail companies and their customers alike.

Business Benefits

• Adds value to your customer experience
• Competitive edge
• Customer retention
• Improved efficiency
• Opportunities for technology integration
• Personalization of services
• Reduced overhead expenses

Customer Benefits

• Easy, quick payments
• No long lines
• No need to handle cash
• No unnecessary contact with the public
• Saves time
• Secure shopping

Contactless Digital Experiences

There are a number of digital solutions that retailers can use to help them in their quest toward contactless opportunities for their customers. Let’s look at a few.

AR and VR

• Augmented reality (AR) and virtual reality (VR) can be used to create virtual fitting rooms where customers can try on clothing, shoes, and even cosmetics by placing the items over an image of the shopper. 

There are some compelling statistics that tell us AR is quite popular with consumers. 

• 44% of respondents say the ability to find the correct size is why they shop using AR.
• 76% said they would be more inclined to use virtual fitting rooms if it meant it would help them avoid having to return items.
• More than 50% prefer to see a representation of themselves in virtual avatars.

Scan-and-Go

Scan-and-Go works like this:

• Shoppers download the store’s app onto their smartphones.
• While shopping, they simply scan the UPC barcode of each item they want to buy.
• When finished, they simply show the digital receipt to the employee at the door and go.
• All payments are made online. 

Surveys show that 77 percent of shoppers are more willing to shop at stores with scan-and-go capabilities.

Self-Service Kiosks

A self-service kiosk is a tablet or touchscreen computer that allows customers access to information or services without contacting employees.  The use of self-service kiosks allows shoppers/visitors to:

• Place and pay for orders
• Check-in and be tracked for appointments
• Purchase items not currently in stock
• Scan items for a quick price check
• Register personal information necessary for the company
• Use as a directory to locations or for directions (in a mall, for example)

Self-service kiosks are extremely popular with the public, as 80 percent of today’s shoppers like to use these non-traditional checkout options.

Online Shopping

Online shopping is the ultimate contactless shopping method. These days, retailers must have a website or mobile app to expand their business reach. In addition, key business elements such as inventory management, accounting, sales tracking, and rewards programs can be integrated. A whopping 263 million people (and counting) in the U.S. shop online.

Technology Must Be Adequate and Up-to-Date

Providing contactless services to customers will probably lead most retail business owners to a comparative assessment of their company’s current technology capabilities. The Harvard Business Review states:

“This is where next-generation digital technologies can make a massive impact, enabling new forms of ‘contactless commerce.’ Contactless commerce can take various forms: a fitting-room mirror that automatically displays the clothing items you’ve just selected from the racks or a virtual fashion advisor on your phone who whispers advice on the season’s latest fashions. Contactless commerce is being enabled by a wide range of new technologies, including machine learning, robotics, and computer-aided holography. It is set to transform all elements of the customer experience, from product comparison to selection to checkout.”

Another case in point is Power over Ethernet (PoE). While this technology is not strictly new (the first type of PoE was ratified in 2003), it is now a technology of choice for many smart applications, such as smart LED lighting systems. In addition, PoE is used to power self-service kiosks, advertising kiosks, digital signage, and point-of-sale (POS) systems. To learn more about PoE, click here.

Versa Technology, Inc. has developed an expansive portfolio of PoE products to support various PoE-capable applications. Please check out our list of PoE products.

COVID-19 and the Ukraine War are having a huge impact on global trade. As a result, shipping costs have soared, and delays have become the norm. According to supply chain expert project44:

“Delays are likely to continue well into 2022 as COVID breakouts continue throughout supply chains and consumers continue to buy at a healthy rate.”

The import-export sector is keenly aware of the primary modes of transport of goods available and their attendant challenges these days. However, other business sectors that depend on chain supply have many questions. This article aims to clarify the differences between two of the key modes of cargo transportation: sea and air.

The Difference Between “Cargo” and “Freight”

First, we need to ensure we are on the same page when talking about the transportation of goods.  Today, the terms “cargo” and “freight” are often used interchangeably, leading to misunderstanding.

We will use traditional meanings for this article. For example, an aircraft that transports goods is not called a freight plane; it is a cargo plane. Likewise, ocean-going vessels are cargo ships, not freight ships. Also, mail is never referred to as freight, no matter how it is transported.  

Conversely, trains carrying goods are called freight trains, while long-haul trucks loaded with products are called freight trucks.

So, in summary, cargo is commercial goods shipped by ship or plane, and mail is always cargo. Freight is goods transported overland via trucks or trains.

And here is where it gets confusing. Industrial sourcing platform and marketing powerhouse, Thomas defines “freight” like this:

“Freight can denote many things. It may mean the product, merchandise, the amount payable, or the money charged. Cargo being transported may be referred to as freight if referring to both the goods and the money charged for their transport.” 

Ocean Freight vs. Air Freight During COVID-19

The pandemic has challenged our world in uncountable ways. One of the most apparent issues is how business owners and managers obtain the goods people need for everyday living. Importers and exporters face rate fluctuations, limited capacity, and long delays. So, how do you choose which mode of transportation for your next freight shipment?

Typically, the choice between ocean and air depends on your shipment’s size, weight, and contents—and on how fast you need it. Here are some general things to note:

1. Shipping by air usually is the best mode of transportation for small shipments—even though it will probably be more expensive. However, your goods will arrive in a matter of days instead of weeks when traveling by sea. Air is usually the best option for retail and electronics products, where fast turnover is vital.
2. Currently, both ocean and air freight prices are higher than usual. However, to help mitigate some of the cost, many airlines place cargo onto passenger planes.
3. Ocean freight is commonly less expensive than air freight, and this holds even in times of a pandemic. Most large shipments travel by sea. Indeed, if you can afford the time, shipping by sea is a great option for any type of goods as it is the cheapest option.

There are some websites that will help you determine the cost difference between shipping your goods by air or by sea. One such site is Freightos.com.

Transit Times

Ocean vs. air freight transit times are becoming more competitive. 

Small ocean shipments that do not completely fill a container are called LCLs (“Less than Container Load”). Until recently, LCLs took much longer to ship than full containers (called  “Full Container Loads” or “FCLs”). However, ocean LCL services now compete with air freight transit time, and they are substantially cheaper. This is because:

• Ships are getting faster
• Canal upgrades are causing fewer delays
• Ocean tracking has improved
• The freight market has become more competitive

Freight booking platform, Freighto, states:

“Some forwarders are now providing express ocean services, sometimes called Expedited LCL, with guaranteed delivery days, actually faster than FCL, and close to matching air transit times. Most air cargo is typically consolidated, but it takes time to put together, and dedicated services are typically once or twice a week. So, transit times are usually 5-7 days. Compare this with some express LCL shipments. For instance, Europe to the East Coast can take as little as 8 days – but it’s important to note that with current conditions, this can be much longer.”

Air Freight Restrictions

When considering air transit, it is essential to know there are many airline regulations and restrictions, and they can vary from country to country. Banned items include:

• Biological products and waste (e.g., medical waste or dangerous pathogens)
• Explosives of any kind (e.g., fireworks, detonating fuses)
• Flammables (both solids and liquids)
• Gases (e.g., compressed gas, dry ice, fire extinguishers, gas lighters, aerosol cans)
• Items that could be dangerous to the public
• Toxic and infectious items (e.g., pesticides)

Carbon Footprint

Good businesses take responsibility for their impact on our environment. And in this day and age, not having green credentials equates to a loss of business. 

So, which mode of transit leaves the smallest carbon footprint?

The answer is ocean freight. Its CO2 emissions are a fraction of those of air freight. So, factor this into your decision if possible.

Ocean vs. Air Freight: A Summary

Ocean Freight

• Has a larger capacity and value
• Much slower transit times
• Custom issues and port holdups can be a problem
• Express LCL is increasingly more available, which offers a delivery date and faster travel times
• Has a much better carbon footprint

Air Freight

• Is best used when the shipping cost is less than 15 to 20 percent of the value of the goods
• Faster, safer, and more reliable
• More expensive (e.g., a $195 ocean shipment will cost approximately $1,000 by air)
• Stricter hazardous material regulations.

In Closing

Versa Technology, Inc. delivers last-mile networking solutions to a global community of IT professionals in North America, South America, China, Europe, Australia, Southeast Asia, Africa, and more. Chain supply and proper product transit are concerns of ours. Our goal is to provide our products in the timeliest manner possible in these difficult times. Check out our website. We want to help you.