Business Transformation: 5 Data Trends to Drive Efficiency
Managing data center energy reliance in an era of data overload.
Businesses are generating and storing more data than ever, but excessive data storage increases data center energy reliance and impacts the environment. However, Anoop Sharma of LTIMindtree, observes that this year, businesses are adopting various data trends that will drive efficiencies, reduce costs, and mitigate emissions.
According to Statista, the total amount of data created, captured, and consumed globally is forecast to increase from 64 zettabytes in 2020 to more than 180 zettabytes by 2025. In business, this explosion of data is driven by several factors: the widespread adoption of digital technologies, the rise of social media and the proliferation of connected devices and sensors. Furthermore, advances in data storage, processing and analytics have made it easier and more cost-effective for businesses to collect, store and analyze vast amounts of data in real-time, enabling them to gain new insights, improve decision-making and drive innovation.
However, increased data use is driving up data center energy reliance causing a significant impact on the environment. As a result, businesses are trying to balance data creation and storage while reducing their carbon footprint. This year, we’ll see many businesses adopt the following data trends to help drive efficiencies, reduce costs, and mitigate emissions.
1. Migrating to the Cloud To Improve Resiliency and Reduce Costs
Cloud computing offers several benefits for businesses. It enhances resilience by providing the ability to rapidly scale computing resources as needed, reliable backup and disaster recovery solutions, and access to critical business applications and data from anywhere, anytime. Cloud service providers also prioritize security and compliance, reducing the risk of cyber threats and data breaches. As a result, businesses are increasingly recognizing cloud computing to build resilience and ensure operational continuity in an unpredictable business environment.
Migrating to the cloud also helps reduce infrastructure and operational costs. Cloud service providers offer scalable resources on a pay-as-you-go basis, eliminating the need for expensive hardware and software investments. Additionally, businesses can avoid the costs associated with maintaining and upgrading their data centers. Cloud service providers also offer fully managed services, reducing operational costs related to system administration and maintenance.
Many large businesses across a range of sectors have reaped the benefits of cloud computing. For example, a large US multinational pharma company recently achieved a 50% reduction in infrastructure and support costs by transforming and modernizing its financial data platform over a 10-month period. At the same time, a European bank achieved a 30% cost optimization by migrating to a modernized data platform in the cloud.
See More: Predictive Data: Identify Problems Before They Become a Crisis
2. Increased Use of Near Real-time Analytics
The increased use of real-time analytics is crucial for businesses to remain competitive. It allows for instant access to data insights, enabling the identification of emerging trends and quick decision-making. Real-time analytics also enables businesses to offer personalized experiences to customers, improving engagement and driving revenue growth with new products and services.
For instance, a large Asian bank is using real-time analytics with over 300 AI models to deliver hyper-personalized customer engagement delivering ∼ 12% improved sales and service and ∼ a 10% improvement in campaign effectiveness.
3. Using Compute Without Storage
Cloud environment provides separation of compute and storage, allowing for flexible and efficient resource allocation. In scenarios such as real-time analytics, where data is processed as it is generated without the need for long-term storage, separating compute from storage in the cloud can deliver optimal performance and cost-efficiency.
By utilizing this approach, businesses can take advantage of the scalability and on-demand nature of cloud resources, dynamically allocating computing power as needed while leveraging separate cloud-based storage services for data persistence. This enables businesses to optimize resource allocation, minimize costs, and eliminate the constraints associated with traditional on-premises computing infrastructure.
4. Cloud Optimisation for ESG
Cloud computing optimizes environmental, social, and governance (ESG) ratings by reducing energy consumption and greenhouse gas emissions. Through server consolidation, virtualization technology, and energy-efficient data centers, cloud computing significantly reduces the carbon footprint of IT infrastructure. Cloud providers also offer monitoring and reporting capabilities to improve governance and transparency in IT operations. Embracing the sustainability benefits of cloud computing can enhance ESG ratings for businesses, attracting socially conscious investors and customers and enhancing their reputation as responsible corporate citizens.
See More: The Impact of ESG Regulations
5. Embracing AI-embedded Business Processes and Systems
Many businesses are adopting AI-embedded systems to automate tasks, streamline operations, and improve decision-making while promoting sustainability. These systems reduce the need for human intervention, increase efficiency, and provide valuable insights by analyzing large amounts of data. By minimizing errors and improving processes, embedded AI systems enable significant cost savings and reduce resource consumption, contributing to a more sustainable business model.
The integration of AI-embedded systems presents businesses with an opportunity to simultaneously enhance operational efficiency, decision-making, and sustainability practices. For instance, in healthcare, these systems enable the efficient use of medical resources, reducing unnecessary procedures and minimizing environmental impact while improving patient outcomes. In finance, AI algorithms aid in identifying fraudulent activities, mitigating financial losses, and promoting responsible business practices. In manufacturing, AI-embedded systems optimize energy usage, minimize material waste, and enhance overall sustainability performance.
Data Is Driving the Future
As the world becomes more connected and digital, businesses will increasingly rely on data for growth and success. Data-driven decision-making is embedded in key business processes with differentiated winners and losers in this decade. The effective utilization of data-driven insights will play a vital role in driving sustainability, as businesses can identify areas for improvement, implement targeted initiatives, and measure their progress toward environmental and social goals. Effectively collecting, analyzing, and acting on data while reducing the carbon footprint will give businesses a competitive edge.
Which data trends are you already adapting to? Share your experience with us on Facebook, Twitter, and LinkedIn. We’d love to hear from you!
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