Data Center Managed Services: Revolutionizing Data Center Operations with Generative AI

As organizations increasingly rely on data-driven processes and digital infrastructure, the demand for robust and efficient data centers has never been higher. Managing a data center involves a complex interplay of hardware, software, security, and scalability considerations, presenting challenges that organizations may struggle to address internally. Service providers harness AI and predictive algorithms to enable proactive maintenance while minimizing downtime. This results in a more reliable and responsive infrastructure, meeting the escalating expectations of businesses reliant on seamless data center operations. Generative AI takes this narrative forward and empowers organizations in resource optimization and allocation by predicting workloads and dynamically adjusting the resource provisioning on demand. It not only enhances security by providing real-time threat analysis but also provides insights, recommendations, and alerts to augment decision-making, enabling efficient data center management

Both demand-side and supply-side trends are covered in Avasant’s Data Center Managed Services 2023–2024 Market Insights™ and Data Center Managed Services 2023-2024 RadarView™, respectively. These reports present a comprehensive study of data center service providers and closely examine the market leaders, innovators, disruptors, and challengers.

We evaluated 38 service providers across three dimensions: practice maturity, partner ecosystem, and investments and innovation. Of the 38 providers, we recognized 23 that brought the most value to the market during the past 12 months.

The report recognizes service providers in four categories:

• • Leaders: Accenture, Capgemini, Cognizant, HCLTech, Infosys, LTIMindtree, TCS, and Wipro
  • Innovators: Atos, DXC, Kyndryl, Tech Mahindra, and Unisys
  • Disruptors: HPE, NTT Data, Rackspace Technology, and Zensar
  • Challengers: Ensono, Fujitsu, Hexaware, Lumen Technologies, Microland, T-Systems

Figure 1 below from the full report illustrates these categories:

“In the evolving data center landscape, the convergence of technology and environmental consciousness is paramount,” said Avasant Partner Henry Guapo. “Green data centers are the silent architects of a resilient digital infrastructure, creating a sustainable path for the future we build today.”

The reports provide several findings, including the following:

• • Security, compliance, and operations management are the top challenges enterprises face while managing data centers. These challenges arise from inadequate physical threat protection, noncompliance with evolving data center regulations, operational complexities, and insufficient capacity planning.
  • Enterprises leverage generative AI in data center managed services for automated data center monitoring, generation of business logic, code refactoring, seamless chatbot integration, efficient incident management, and log simplification.
  • Service providers are focused on delivering data center managed services through the creation of IP assets, addressing specific data center offerings around infrastructure management, private/public cloud management, operations management, and DevOps management.
  • Banking and financial services sectors contribute about 25% of the data center managed services revenue. Evolving needs for scalability, cost management, and compliance with regional regulations are key factors driving the demand for data center managed services in these industries.

“Generative AI fosters a proactive approach to data center observability,” said Gaurav Dewan, research director with Avasant. “Generative AI can simulate and predict workloads, which not only optimizes energy efficiency but also positions it to meet the growing demands of a digitally driven world.”

The Data Center Managed Services 2023–2024 RadarView™ also features detailed RadarView profiles of 23 service providers, along with their solutions, offerings, and experience in assisting enterprises with data center management.

This Research Byte is a brief overview of Avasant’s Data Center Managed Services 2023–2024 Market Insights™ and Data Center Managed Services 2023–2024 RadarView™ (click for pricing).