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The internet of things will require new thinking on data centers

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In a world with 26 billion connected devices generating upwards of $300 billion in revenue is coming according to Gartner. In a release issued Tuesday, the analyst firm outlined the promise of the internet of things, but warned that the current thinking on data centers wouldn’t scale. The solution appears to be in the cloud.

“The recent trend to centralize applications to reduce costs and increase security is incompatible with the IoT. Organizations will be forced to aggregate data in multiple distributed mini data centers where initial processing can occur. Relevant data will then be forwarded to a central site for additional processing.”

The quote highlights perfectly what we’re going to be discussing in June at our Structure 2014 show in San Francisco. The big picture is that to meet the demand for real-time data processing from billions of connected devices, the data center will have to change. We agree.

This story was updated at 12:38 to correct a typo that turned $300 billion in revenue into a mere $300 million.

11 Responses to “The internet of things will require new thinking on data centers”

  1. Hey Stacey
    Nice post. I just wanted to let you know that I linked to your article in the InterWorx roundup of March’s Best System Administration, Hosting, Security, and Enterprise IT Content. Thanks again for the helpful article.



    Hey everyone is in the cloud already – does anyone of you use Google or Facebook? You’re sharing! And of course, VPNs are cloud modalities, too, Private clouds, Secure clouds, there are many ways to make it happen.Currently I see no other way to grow your computing power without a cloud(or many), with less costs and concerns – the olny care we should have is with choosing the correct vendor.

  3. Unwittingly we’re already accepting the cloud if you’re sharing music, pictures etc across Apple devices. This brings to mind DropBox and how many were leery in the early stages. Whether you’re an early adopter or a late adopter I’m in agreement that cloud acceptance is inevitable.

  4. I have to agree as well; despite the quite understandable rejection of the cloud by some of the other participants. Back in the day, 2010 to be precise, I wrote a “fun” piece on how fibre based broadband could contribute to the sustainability of rural communities. Part of that vision was the “local cloud”. While it was a fun piece it was really about the need for vision, leadership and confidence in local democracy: technology was enabling not suppressing society. My personal blog has long gone but there is an archive here: . I appreciate and in some ways share people’s cynicismbut I retain a shred of hope that some day we will realise the promise of technoloy and I still believe that sound infrastructure and cloud technology will have a place in that.

  5. I hate the “cloud”. Basically a way to ensure the NSA can pull data without you knowing. Then we have to beg the ISPs to increase speeds while paying capped overages. I refuse to buy any product that does not offer me to a method of full control to store locally on my own servers ONLY!