Pete Miller, Sales and Business Development Manager, ETB Technologies
This year marked another pivotal period of change for the tech sector, seeing transformational developments in how businesses operate. AI continued to drive rapid advancements across a range of industries, and the cyber threat landscape saw some of the world’s largest organisations fall victim to cyber criminals. All of this while organisations continued to juggle data storage and management challenges while attempting to mitigate their overall environmental impact.
Looking towards 2025, none of these issues look likely to disappear. What’s more, a uniquely complex geopolitical situation seems set to make the technology supply chain trickier than ever. That’s why I expect to see strategic thinking come to the fore as businesses look to shape their technology strategy to more accurately fit their needs.
Making predictions may be a fool's game, but failing to prepare can be disastrous and that’s why I’m putting on my Nostradamus hat, nailing my colours to the mast and explaining what I think the biggest developments will be when it comes to changes in data and tech demands across the next 12 months.
AI Advancements Ramping up GPU and Server Demand
It's no surprise that artificial intelligence remains the hottest tech topic of 2024, driving the biggest shift in requirements since the graphics card revolution of the late 90s. Back then, Nvidia's single-chip GeForce 256 took the market by storm, transforming entire industries such as video game development and VFX.
Today, AI is making even bigger waves, showcasing the immense potential of data-driven technology to enhance human capabilities. Machine-learning has expanded far beyond chatbots like ChatGPT and Jasper AI; it’s now an essential tool across numerous sectors. Architects are using AI-driven design tools to bring their projects to life through virtual reality visualisations, while visual effects specialists leverage AI to enhance rendering and character animation.
As AI use grows, so does the need for robust technology to manage the vast data demands it generates. Organisations will need to consider how all this data will be accessed and managed, meaning higher specifications, greater processing power and fast and reliable networking and switching capabilities will be needed. As a result, we’re seeing a surge in demand for high-performance GPUs and large capacity storage to meet these requirements. This is a trend I’d only expect to grow over the next 12 months.
The Shift to Modular Infrastructure and Data Centres
To keep up with these changing data demands, data centres are adopting more flexible and modular solutions. This year saw the UK label data centres as Critical National Infrastructure (CNI), bringing new pressures and responsibilities. As a result of this decision, enhanced security standards, stricter regulations, and increased scrutiny over supply chains are pushing these organisations to be more vigilant in choosing the right processing equipment and implementing robust protocols. This heightened focus aims to mitigate cybersecurity risks while ensuring data centres today remain resilient enough to support the needs of the UK economy.
Combined with the rapid growth of AI and machine learning, changing demand in the sector means data centres will need to scale up quickly and adapt operations to handle unprecedented data volumes. Traditional, rigid infrastructure setups are less viable, paving the way for more modular strategies that offer customisable power, cooling, and load capacities. And this move is accelerating, with companies like Microsoft already deploying modular, container-based data centres in remote locations, offering the flexibility needed to adapt to evolving processing needs. This sets a positive precedent that other players will follow, and modular infrastructure will likely become the new standard.
Hybrid Cloud Solutions: Balancing Flexibility and Control
Although cloud spending has continued to rise, with a 21% surge in Q3 2024, the idea of ‘hybrid cloud’ isn't going anywhere. The continued trend towards a combined approach highlights the tech sector’s need for adaptable storage solutions. As a strategy, it is now clearly more than just a fast correction for a blip caused by the pandemic. Hybrid storage models, offering a flexible and tailored method for storing different types of data, are here to stay.
The Synnovis cyber-attack on the NHS earlier this year underscored the need for secure data storage, also highlighting the risks of centralised storage for sensitive data. This has prompted organisations to re-evaluate their data management strategies, with many now storing critical data on physical servers while using “the cloud” for non-essential data. With criminals taking ever more sophisticated approaches, the risk of a cyber breach is more acute than ever. I’d expect to continue to see that reflected in how organisations approach data infrastructure in 2025.
Balance is key and while cloud solutions offer flexibility, enabling companies to scale up or down to meet changing requirements, businesses can end up locked into long-term contracts. Whether for six months or three years, these contracts often come with hidden costs especially when prices fluctuate or data use increases.
A hybrid approach offers an alternative that gives companies the best of both worlds: the ability to maintain control over critical data while reducing dependence on public cloud services and leveraging cloud flexibility. Given these advantages, many companies are likely to continue gravitating toward a mixed approach for the foreseeable future.
The move will bring some additional challenges to the table though. It will require investment in robust hardware at a time when budgets are tight. From a market-wide perspective, we’ll no doubt see those prioritising ‘hybrid cloud’ exploring new avenues when it comes to investing in their tech, looking at viable options, like refurbished, to get the most bang for their buck.
Sustainability in IT through Refurbished Technology
As green ambitions take centre stage, more companies are investing in sustainable tech to reduce carbon footprints, minimise waste, and achieve their net zero goals affordably. However, to truly drive adoption of sustainable equipment, we need stronger support mechanisms.
The UK Government’s introduction of super-deduction tax in 2021 - allowing companies to cut their tax bill by up to 25 per cent when investing in qualifying machinery - was an effective incentive for businesses to enhance their infrastructure. But limiting it to new and unused equipment took away the opportunity to promote investment in perfectly viable, high-quality refurbished equipment.
Now, we’re seeing the pendulum shift as governments and large organisations like Microsoft set ambitious reuse targets for existing tech resources. Microsoft’s Circular Centers initiative aims to reuse and recycle 90% of cloud computing hardware by 2025—a bold step toward a sustainable future that could inspire other corporations.
There’s a strong focus on sustainable IT practices at scale, but for these efforts to have a real tangible impact, refurbished technology needs a firm place in policies and incentives. The EU’s Circular Economy Action Plan encourages public sector bodies to include refurbished tech in procurement to meet sustainability goals—a model where the UK is lagging. Microsoft’s circular strategy is a promising start, but a proactive approach that integrates refurbished products into sustainability initiatives across the UK will be essential if our industry is to successfully reach its green ambitions.
As AI pushes infrastructure to new limits, generating more data than ever before, industries are looking for fresh approaches to ensure performance, flexibility and sustainability affordably. Demand for high-powered GPUs and modular data centres, combined with migration towards hybrid storage models and more focus on reducing waste, signals a transformative shift across the sector in 2024 to support an AI-driven future, which will only accelerate in months to come.
This is where enterprise refurbished IT can help. It is often more economical to bring specific workloads into on-premise servers without blowing the budget. Business leaders can be reassured that the quality of refurbished IT is as good as buying new - and covered by robust warranties.
