Data Centers in 2023: How Offering Kubernetes Can Help You Maximize Profits

Most data centers have struggled to increase revenue in recent years, and that trend is expected to continue. Analysts project that the overall data center market size will only increase by a CAGR of 5.1% between 2021 and 2023. 

Fortunately, Kubernetes has emerged as a new way for data centers to improve their operations, offer specialized services, and gain a competitive advantage. The overall market for Kubernetes solutions is expected to grow by a CAGR of 23.71% between 2021 and 2027 — a dramatic increase from overall data center growth.

What’s driving this rapid growth? Enterprises are increasingly seeking out Kubernetes to directly use in their own applications or as the backbone for the services they use. One study found that 70 percent of IT leaders currently use Kubernetes within their organizations.

Data centers can take advantage of this growing interest in 2023 by enhancing their services and reselling Kubernetes to their customers. Keep reading to learn how integrating Kubernetes into your data centers can improve operations and revenue.

The Benefits of Offering Kubernetes to Data Center Customers

Kubernetes is a container orchestration system that has the potential to improve traditional cloud products. Individual containers are automatically created to handle microservices, then destroyed when they’re no longer needed.

Upgrading your data center to include Kubernetes is a powerful opportunity for your business and customers. Let’s explore some of the primary ways Kubernetes benefits your operations and customers.

Improved Scalability

Kubernetes offers an unparalleled level of scalability that improves on the initial promise of overall cloud computing. In addition, the ability to automatically create and destroy containers allows your infrastructure to maximize every available resource.

And this precise scalability translates to cost savings for your customers. You can monitor exactly what they use and bill accordingly more accurately than legacy cloud computing infrastructure.

Enhanced Reliability

Reliability is one of the core promises of cloud computing that initially catalyzed adoption. While cloud computing typically remains more reliable than on-premise or traditional infrastructure, Kubernetes has improved on the design to offer even greater reliability.

Kubernetes allows for infrastructure resources to be explicitly allocated to containerized microservices. These geo-redundant virtualized containers take on a specific microservice. If one container fails, it only affects that specific container, which can be re-created, or related containers can route to redundant containers.

Ultimately, your customers will have new levels of reliability by further virtualizing the roles of your infrastructure.

Better Cost-Efficiency

Adopting Kubernetes can significantly improve the cost efficiency of your data center. Containers are created when necessary, then destroyed when your users no longer need them. This translates to every server in your center maximizing its resources while improving the accuracy of your billing.

Cloud computing initially allowed data centers and customers to improve cost-effectiveness, and now Kubernetes improves the precision of delivering the exact resources your users require. And this new level of cost-efficiency translates into higher revenue potential.

Higher Revenue Potential

A recent study found that 83% of enterprises operating Kubernetes attribute over 10% of their revenue to adopting the technology. 

However, the same study found that a lack of integration with existing tools is the top challenge to further adoption and revenue. This void allows data centers to upgrade their infrastructure and provide enterprises with the necessary solutions.

Embracing Kubernetes creates additional opportunities to improve your revenue while providing customers with the tools they need to increase theirs further. Your data center can leverage Kubernetes in two significant ways:

1. Include it as part of the overall package: Kubernetes can be included in your existing data center services. Once your infrastructure is upgraded, it can be an optional upgrade or become part of your core offering to become a core selling point.
2. Resell it as a standalone product: We’ve seen how many enterprises already use Kubernetes and wish to expand their capabilities. Additionally, some organizations may want to explore how Kubernetes can enhance their applications. Reselling Kubernetes to these enterprises creates an entirely new revenue stream for the overall benefit of your business and customers.

Data centers that offer Kubernetes in either capacity gain a competitive advantage over other options still relying on legacy technologies. 

You’ll discover that many end users are explicitly looking for Kubernetes, while others may not know the benefits it has to offer. As a result, both markets create an opportunity for revenue growth.

Factors Impacting Revenue Potential

It’s essential to have realistic expectations before adopting Kubernetes. We have firm believers in its potential to enhance several aspects of your operations, but several key factors will impact your real-world revenue:

• Size and type of your data center: Your success with reselling Kubernetes will vary based on how large your data center is and the type of markets you currently serve. Your existing and target customers may not be interested in Kubernetes, or your data center may not have the added capacity to offer it alongside your current packages.
• Local market: Most organizations start by looking locally, as the proximity of a data center affects performance. Is there a strong demand for Kubernetes in your region? It may not be worth upgrading to Kubernetes if people in your area are not interested in it.
• Competitive landscape: Existing competition also plays into both of the above factors. Ideally, offering Kubernetes will give you a competitive edge. However, you might instead be playing catch-up. 

Investigate each of these factors before making the decision to offer Kubernetes. You need to know if Kubernetes is worth the investment before moving forward.

How to Successfully Offer Kubernetes in Your Data Center

Does Kubernetes make sense for your data center’s target market, region, and competitive landscape? Let’s briefly review the process. 

• Evaluate your current infrastructure: It’s unlikely you’ll be able to suspend your existing services to migrate to Kubernetes as you have current customers depending on your data center. Do you have the capacity to set up Kubernetes, implement new procedures, and conduct thorough testing before making it available? 
• Develop new operational procedures: You’ll need to create or modify several essential operational procedures as you adopt Kubernetes. For example, you’ll need an upgrade strategy for new Kubernetes versions, modified backup procedures, and new failure protections. 
• Train existing staff or hire specialists: Kubernetes is a specialized technology that requires the appropriate training. Your current team can likely be cross-trained, but you may also need to hire additional specialists. Evaluate your talent pool, assess current skill sets, and ensure everyone is in place.
• Build strong marketing messaging: The technical side of upgrading to Kubernetes is vital, but if nobody knows about it, you won’t see the revenue benefits. Your marketing team needs to create new campaigns and change existing website copy to highlight Kubernetes. Focus on the benefits your new offer provides potential customers; not everyone will be familiar with how Kubernetes can help their business.
• Create an effective sales strategy:  Most B2B sales involve a sales demo or quote before signing up. Have a knowledgeable sales team with new processes ready to answer questions, provide applicable demos, and help new leads become customers.

Make Kubernetes Your Competitive Edge for 2023

Traditional data center revenue has almost plateaued, while those offering Kubernetes are ready to capitalize on the ever-increasing demand for the next generation of cloud computing. 

Fortunately, reselling Kubernetes allows you to offer an in-demand service, stay up-to-date with the latest trends, and gain an advantage over the competition — all resulting in maximizing revenue opportunities.

Is Kubernetes the right option for your data center? Reach out to Lyrid today to discover how our unique platform can streamline upgrading and offering Kubernetes to your current and future customers.