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September 24, 2015updated 30 Aug 2016 12:17pm

Data centre sector faces huge upheaval

Old ways of doing business no longer apply.

By Joao Lima

Data centres are being challenged by current business models and governmental jurisdiction.

The sector faced a stark warning at an IO Data Centres (IO) industry showcase that old ways of doing data centre business are no longer applicable to win in this sector.

Nigel Stevens, UK MD at IO, said the industry is undergoing a major shift and that selling data centre space in the same way as before is not viable anymore.

"The biggest revolution in the data centre space is for customers to buy what they need. It means selling small increments more often."

Michael Foote, head of partnership and alliances Infosys, said: "It is all about people. The location of the data centre is a people’s thing."

Data protection and governments’ agendas are also impacting the data centre space.

Recent jurisdiction laws in Russiasparked an industry wide debate on the topic of local hosting and data protection.

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The Russian government stipulated that all data produced within the country’s borders has to be kept in Russia.

Foote said: "Russia does not like what the rest of the world is doing. It is all about politics."

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