What are the emerging digital transformation prospects for 2024?
With the global trend of digital first transformation accelerating, the impact of digital transformation is expected to be more ingrained in businesses and industries as a whole in 2024. According to a recent report by IDC in Korea, digital transformation (DX) investment is expected to grow by 65% among all ICT investments expected by the end of 2024.
At the same time, as companies make digital transformation their core strategy, various digital trends are also attracting attention. In this content, we will introduce three digital trends suggested by Equinix, along with the definition of DX/DT, which is essential to lead the digital transformation era.
First, let’s take a closer look at the definition of digital transformation. Digital Transformation (DX/DT) refers to the fundamental changes in a company’s business model, culture, and way it operates using digital technology. The changes go beyond just technology to strategic restructuring of the organization, and Isaac Sacolic, the author of Driving Digital, described digital transformation in his book as “digital transformation driving innovation from business strategy to operation and revenue generation, not technology application.”
In other words, true digital transformation represents innovative changes that contribute to increased revenue and operational efficiency, along with changes in business strategy. Digital transformation should be understood from ‘a perspective of innovation, not just upgrades’. This approach from DX allows companies to maintain their competitive advantage and continue to improve.
Earlier, we briefly looked at the definition of DX. So what are the main trends in digital transformation associated with 2024? To find an answer, let’s take a closer look at three digital trends announced by Equinix below.
The first digital trend to be introduced is private AI. Private AI refers to AI systems that companies independently operate and manage. It aims to create a customized environment for companies to make the most of AI’s potential. To maximize the value of AI models, reliable data sources, utilization of appropriate models, and protection from potential risks are essential. Therefore, companies are considering these factors by building a proprietary AI environment, Private AI.
In addition, private AI plays a very important role in data security and privacy. In particular, as companies greatly contribute to digital transformation (DX/DT) through AI technology, it is expected to continue to be introduced and spread.
The second digital trend to be introduced is XaaS (system as a service). XaaS means anything as a service. It comprehensively refers to a vast amount of products, tools, and technologies provided as services through the network (mainly the Internet). Among the various examples, the previously introduced cloud computing model (SaaS, PaaS, IaaS) is the most representative example of XaaS.
XaaS is simplifying the deployment and use of services to accelerate the implementation of digital services in an enterprise. Digital services quickly provide new capabilities in the XaaS ecosystem and can be quickly scaled up and contracted according to business needs. Thus, in such an environment, enterprises can benefit from cost savings and faster innovation. Meanwhile, an IDC report predicts that 65% of customers will use XaaS to leverage IT services and equipment by 2026. The adoption of XaaS is expected to continue to increase.
The last digital trend to introduce is liquid cooling technology. Liquid cooling technology is an innovative way to improve data center efficiency, rack density, and cooling performance, which can handle data center-generated heat much more effectively than traditional air cooling methods. According to a Gartner report, liquid cooling can effectively conduct more than 3000 times more heat with far less energy than air cooling.
In particular, water cooling is emerging as an alternative as advances in artificial intelligence (AI) and high-performance computers reveal the limitations of traditional air cooling methods. With the rise of Generative AI, GPU servers that require high power and high heat are operating on a large scale, and liquid cooling is emerging as a major challenge for data centers. Recently, Dell Technologies Korea signed a business agreement with SK Enmove to promote the data center liquid cooling business, and liquid cooling is expected to become the basic requirement when Nvidia releases next-generation GPUs, raising interest in water cooling methods.
In addition, liquid cooling, which is divided into direct-to-chip and backdoor heat exchange (RDHx), uses liquids to lower the temperature, but the equipment does not actually get wet. In contrast, immersion cooling, which really precipitates nonconductive liquids, is a trend that combines with liquid cooling technologies to advance solutions. Therefore, the data center industry has recently been actively developing and testing water cooling technologies, including liquid cooling and immersion cooling.
Here’s a brief summary of three digital trends for 2024. As you can see, these emerging trends with the advancement of AI and cloud technology are driving the digital transformation. Therefore, companies planning digital transformation should actively consider introducing AI and cloud.
In response to this digital transformation trend, Elice is operating a GPU cloud service to support enterprises’ digital transformation. With Elice Cloud, the GPUs needed for AI education and research can be utilized in a cloud environment at an affordable price. In addition, by building a server farm that can support more than 1,000 simultaneous users, the world’s best GPUs can be utilized.
If you are a company planning to introduce AI at the DT level, use the Elice GPU cloud to quickly start researching AI. With Elice, you can effectively apply AI and the cloud, which are key elements of digitalization.
So far, we have introduced the definition of digital transformation and three digital trends. In addition, we will also introduce the Elice GPU Cloud to realize DT. The Elice Cloud provides various resources for AI education, research, and service development. Machine learning API, R&D environment allocation, and high-performance GPU/NPU can be used at a reasonable price, which will be very useful for those who want to participate in AI DX. More information can be found at the link below.
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