In line with the rapid changes in the world, we need information technology to build faster communications, maintain electronic storage, and protect records. Simply put, IT creates an electronic storage system to protect company records.
Previously, data was stored on personal computers, but now data can be stored in storage with a fairly large capacity. This facility can not only store data but can also process it into quality information.
As an reinsurance broker and consultant, this time we want to discuss risk management and insurance related to data centers. If you are interested in this article, please share it with your colleagues so that they understand as you do.
What are the Components of a Data Center?
A Data Center has three main components: computing, storage, and networking. However, these components are just the tip of the iceberg in a modern DC. Beneath the surface, the supporting infrastructure is critical to meeting the company’s Data Center service level agreements.
Data Center Computing
The server is the engine of the Data Center. On the server, the processing and memory used to run applications may be physical, virtualized, distributed across containers, or distributed among remote nodes in an edge computing model.
Data Centres must use the processors best suited for the task; for example, there may be better choices than general-purpose CPUs for solving artificial intelligence (AI) and machine learning (ML) problems.
Data Centre Storage
Data Centres host large amounts of sensitive information, both for their own purposes and for the needs of their customers. Reducing the cost of storage media increases the amount of storage available to back up data centres locally, remotely, or both—advances in non-volatile storage media decrease data centre access times. Additionally, as with other software-defined storage technologies, it increases the efficiency of staff managing storage systems.
Data Centre Networking
Data Centre networking equipment includes the cables, switches, routers, and firewalls that connect servers to the outside world.
Properly configured and structured, they can handle high volumes of traffic without sacrificing performance.
A typical three-tier network topology consists of a core switch at the edge that connects the data centre to the internet and a middle aggregate layer that connects the core layer to the access layer where the servers reside. Advances, such as hyperscale network security and software-defined networking, bring cloud-level agility and scalability to on-premises networks.
Why does Indonesia need more Data Centers?
As a newly industrialized country, Indonesia is always compared to its technologically advanced neighbors such as Singapore, Malaysia, and Thailand. However, there are five socio-economic factors that make Indonesia attractive despite its status as a developing country.
Stable Economic Growth
Indonesia’s economy is the largest in Southeast Asia and is one of the world’s emerging market economies. With a GDP of USD 3.2 trillion in 2020, Indonesia’s annual GDP growth has been relatively stable at around 5%.
Although the country entered a recession in 2020, it has recovered and managed to emerge from the crisis in the second quarter of 2021.
Rapid Development in Digital Infrastructure
As mentioned by the World Bank, Indonesia’s economic planning follows a 20-year development plan, which is segmented into 5-year medium-term plans.
The current medium-term development plan is the final phase of a long-term project. It aims to further strengthen the Indonesian economy by increasing its competitiveness in the global market.
One of the government’s priorities is to develop digital infrastructure in Indonesia and accelerate digital transformation. For example, Jakarta is on the path of the newly installed INDIGO cable system, a subsea fibre optic cable that connects Singapore to Sydney via Jakarta and Perth.
Using today’s coherent optical technology, the cable system promises lower latency and improved reliability.
Large User Base
Because proximity to end users is a critical Data Centre location criterion, most Data Centres are built in areas where people are.
With over 270 million people, Indonesia is the world’s fourth most populous country and the largest in Southeast Asia, offering businesses across a range of industries a large potential user base.
Additionally, in 2020, 54% of its population were Gen Z and Millennials, tech-savvy and fully comfortable with the evolving, digital world.
Internet Penetration Rate Yes