How Managed Data Centers Ease the Data Management Challenge for Auto Manufacturers

By: Chris Nerney - Leave a comment


Auto manufacturers are collecting and analyzing unprecedented amounts of data from factories, dealerships, financial services providers, after-market vendors, customers and — increasingly — the vehicles themselves. A study by IHS Automotive predicted that data collected by connected cars would explode to 11.1 petabytes by 2020, or 23 times the 480 terabytes collected in 2013.

The study estimated connected cars will create $14.5 billion in revenue from data assets by 2020. “Significantly, the technology growth will drive sales, value-added services and customer experience in the sector for years to come,” IHS said. But this is just the tip of the data management iceberg since many automakers will also be expanding their financial services departments and growing into the spare parts sector.

The Need for Data Management

But with that opportunity comes a costly data management challenge. The exponential flood of telematics data from connected cars — which can include information about the readiness and operability of vehicle systems and parts as well as current speed, fuel efficiency, entertainment preferences and external factors such as surrounding traffic and weather — has to be stored intelligently to ensure real-time availability. So, too, do the terabytes of data from other sources, including marketing teams, finance departments, the supply chain and customers.

For auto-industry IT departments, the job of managing data can get in the way of more high-value activities such as using analytics to improve customer experience, business processes and sales. Data management can also increase costs by requiring automotive manufacturers to hire more IT professionals, pay for training to upgrade staff skills or buy expensive data management software and server hardware.

How Managed Services Can Help

One attractive option for automotive manufacturers that want their data managed efficiently and cost-effectively is a managed data center. By utilizing the expertise of an experienced third-party data center services provider, automotive manufacturers can avoid many of the high costs associated with managing data in a real-time environment.

A managed data center delivers the agility, scalability and flexibility needed by the auto industry to take full advantage of telematics data from connected cars and other areas of their business. A managed data center services provider can deploy automated tools to monitor servers, storage devices, apps and network performance while employing staffers with the skills to manage hybrid data center infrastructures.

Automotive manufacturers can reduce capital and staff costs while ensuring optimal uptime and scalability by using a managed data center services provider. Reliable and affordable data management will allow auto manufacturers to focus on leveraging vehicle, driver and environmental data to improve safety and performance, provide real-time contextual information and increase customer satisfaction.

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About The Author

Chris Nerney

Freelance Writer

Chris Nerney writes about technology, science and health care for a number of websites and enterprises. He has written extensively about mobile technology, cloud computing, big data and analytics, health care finance and IT, data centers and space technology. His work has appeared in Computerworld,, Data-Informed, Revenue Cycle Insights, Network World and numerous other... Read More