Top 5 trends in data management

Our daily lives, the activities of our businesses, and the functioning of our countries depend on digital data and the application thereof. Ever fewer organisations and institutions can do without it. Here are the five major trends driving data management today.

Modern data centers set examples in terms of their level of security. Photo by: Tõnu Tunnel.

1. Data security and encryption

Data is of interest to those with dishonest intentions for various reasons: whether they wish to simply steal information, demand ransom on the data by locking it up, or to obstruct the activities of companies and institutions for political and economic purposes.

Current encryption systems are based on technology developed in the 1970s, but the advent of quantum computers has dramatically increased the ability to crack open secrets. There is therefore a growing need for a modern, secure, and robust encryption system. For example, the Estonian government recommends that 10% of the cost of new information systems should be earmarked for cybersecurity.

Physical security, which means keeping IT equipment out of the reach of troublemakers, is just as important as cybersecurity. A high level of cybersecurity is of little use if unwanted individuals can access servers to corrupt, copy, or manipulate data. In this context, modern data centers set examples, as they, in some aspects, already resemble security agencies in terms of their level of security – high fences with sensors, armed guards, hundreds of cameras with motion and thermal sensors, biometric authentication, and so on. We have previously written about the most secure data center in the Baltics on our blog.

2. Server reliability

We live in an era where people are used to getting everything right away. That is why businesses also expect their IT systems to be online and accessible at all times. Ensuring the reliability of servers in data management has therefore become extremely important. An outage of just a few hours can mean hundreds of thousands of euros in losses for a business.

As a result, more and more IT equipment is being stored in a data center or with a service provider, which provides redundant power, communications, and cooling for the machines. This means that a single failure cannot disrupt the system. The importance of business continuity has also been illustrated by the failures of the largest public cloud service providers, which showed how dependent we are on the availability of IT systems.

Backing up data and storing it in different physical locations is also essential to reliability. It can be a vital lifeline in the event of, for example, a ransom attack or a major natural disaster.

Ultimately, organisational leaders expect smooth operations and a constant online presence, because every second counts.

3. Artificial intelligence

As the volume of data increases, so does the need to analyse it. To push the limitations of human capabilities, more and more artificial intelligence is being deployed, as it can do more in a shorter amount of time. Security systems and facial recognition are good examples of where artificial intelligence can address thousands of people at once if needed. Another good example is logistics and supply chains, where a machine can go through far more alternatives than a whole department of employees.

Artificial intelligence is also playing an increasing role in infrastructure management. For example, a machine with learning capabilities optimises the cooling systems in one of the greenest data centers in the Baltics. This machine can not only react but also predict which area needs more cool air to keep IT equipment at the right temperature. This optimisation means energy savings and reduced carbon emissions. Contrary to popular belief, this does not mean abandoning human labour, but making it more effective.

4. Data fabric

A data fabric is an architecture that facilitates the integration of different data channels and cloud environments, supported by smart and automated systems. According to IBM, over the past decade, developments in the hybrid cloud, artificial intelligence, the Internet of Things (IoT), and edge computing have led to a significant increase in big data, making it even more challenging to manage organisations. This, in turn, underlines the importance of connecting and managing data environments.

Data integration allows for more comprehensive and data-driven decisions. In the past, different data platforms of companies were tailored to specific business areas. For example, HR, supply chain, and customer data platforms kept data in different and separate environments, despite potential overlaps. However, the data fabric allows for a more coherent view of this data to better understand the customer life cycle and make connections. By closing these gaps in understanding of customers, products and processes, data fabrics are accelerating digital transformation and automation initiatives across businesses.

5. Sustainability

Significant progress has been made over the last 15 years in energy-efficient data storage. A graph reflecting the sector average shows that efficiency has increased by nearly 40%. Yet, every year, more and more energy is spent on data hosting.

There is a clear trend for organisations to favour data centers and service providers with a smaller ecological footprint. Increasing demand will, in turn, motivate an increase in supply, and this virtuous cycle will bring us closer to meeting our climate targets. Additionally, there is growing scrutiny regarding what data needs to be kept online at all times. Backing up or archiving information also offers good opportunities to reduce the ecological footprint.

A new trend is the creation of renewable energy generation capacity near data centers and the reuse of heat from cooling IT equipment. For example, the largest data center in the Baltics is also ready to provide residual heat to heat the domestic water or premises of surrounding households or industries.

All in all, these trends reflect a desire to cross-use data more and to keep IT systems in good working order and available at all times. For various reasons (climate and energy crises), the energy efficiency of data hosting and implementation has also become highly topical. A forward-looking leader has to address these issues in one way or another.