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Data Centers in the Philippines: Their Evolution and How They Work

Posted by nikolay | June 11, 2019

With the shift from accomplishing tasks on paper to the heavy utilization of the virtual world, many companies are relying on data centers in order to provide smooth operations and a more efficient way of obtaining data and information. Many data centers in the Philippinesare seeking to house more servers in order to cater to the needs and requirements of their clients.

In terms of the evolution of data centers, we’ve come a long way and we have drastically advanced our hardware and software technology. Here, we’ll talk about how far we’ve come into the development of data centers through the years and what data centers do. The importance of data centers is truly vital for the efficiency of our world.

History and Evolution of Data Centers

History and Evolution of Data Centers


In 1945, the United States Army developed one of the most complex computers of its time, the ENIAC (Electronic Numerator, Integrator, Analyzer, and Computer). This hulking computer weighed around 30 tons and took up 1,800 square feet of floor space. The large computer required at least 6 full-time technicians to keep the whole thing running. The ENIAC was capable of 5000 operations per second, a feat that was quite impressive at the time.

From the era of the ENIAC until the 1960s, computers were mainly used by the government and many other government agencies. These computers had large mainframes which were stored in their own dedicated rooms. Today, these are what we call data centers.

It was during the 1960s where computers had converted their cumbersome vacuum tubes into solid-state devices like the transistor. These solid-state devices had longer life spans and were very minute in size. They were also known for their efficiency and reliability. One more thing that made the shift more reasonable was that they were cheaper than vacuum tube devices.

During the early 1960s, computers were not as easily available for people to use, due to their size and cost. At the time, a computer may cost around 5 million dollars each. It was almost impossible to own one due to the ludicrous price. These computers could also be borrowed for a hefty price tag as well; they could be rented for 17,000 dollars a month.

By the middle of the 1960s, computers were becoming more common for commercial use. Typically, a single computer was shared by multiple parties. One of the most significant programs at the time was the Sabre system. The Sabre system was a reservation program developed by the collaboration of IBM and American airlines. Two IBM 7090 computers that had the Sabre system installed resided in a specially designed computer center in Briarcliff Manor, New York. The computer where the system was installed could process 84,000 telephone calls in a single day.

By the end of the 1960s, computers were transitioning from the use of magnetic core devices to solid-state static and dynamic semiconductor memory. The use of solid-state and dynamic semiconductor memory dynamically reduced costs, decreased size, and greatly lowered the power consumption of computing devices. This made them much cheaper to create and manufacture. Computer processors were beginning to develop for performance.


In 1971, the world’s first commercial microprocessor was first released, created by Intel, it was called the 4004. The Intel 4004 is a 4-bit central processing unit which was produced from 1971 to 1981. It consisted of 2,300 transistors and clocked at a maximum rate of 740 kHz. Its application was for arithmetic manipulation.

Computers during the 1970s were mainly tasked with doing bookkeeping duties. They were made to function with batch operations and work, which barely involved complex assignments. In the United States, data centers began preparing for the worst. In 1973, documentation of formal disaster recovery plans took place. If ever disaster struck, they were fairly confident that it would not impact business operations.

In 1973, Xerox developed a minicomputer called Xerox Alto. This creation was a breakthrough in the world of personal computers as it was able to support an operating system based on a graphical user interface or GUI. The Xerox Alto comes equipped with a bit-mapped 606×808 pixel high-resolution screen, 512 kB memory, internal and external memory storage, a CPU memory clock of 5.88 MHz, a 3-button mouse, a keyboard, and its own special software.

In 1977, ARCnet was born, this was the world’s first commercially available local area network. ARCnet was the first to serve as a beta-site at the Chase Manhattan Bank in New York. What’s amazing about the ARCnet was its simplicity and cost-effectiveness. It was the simplest type of local area network which supported data rates of 2.5 Mbps and connected up to 255 computers into one network.

In 1978, SunGard created the first commercial disaster recovery and solutions. Their services help safeguard companies from any information technology outages and network failures. This helps companies mitigate damage costs from any system catastrophes. No one knows when these may affect a company.

During the late 1970s, computers with passive cooling were slowly being replaced by air-cooled computers. This allowed computers to work efficiently at optimum operating temperatures even under higher loads. Many of these air-cooled computers have become standard in offices, killing off data centers.


The birth of the Personal Computer (PC) of IBM started a new technological era and the boom of the microcomputer. Computers were being installed left, right, and center. IBM’s computers were made to work optimally regardless of environmental conditions. Its operating requirements were more flexible.

From 1985 to 1990, IBM provided more than 30 million dollars’ worth of products and computer support to a supercomputer facility in Ithaca, New York, at Cornell University. Within this 5-year timeframe, IBM introduced the IBM Application System/400. Known as the AS/400, this has become one of the world’s most popular business computing systems at the time.

The sudden burst of technology and computers has alerted a need for many companies to be aware of controlling IT resources. As many technological operations grow in complexity, specialists in the field of information technology took charge of controlling the resources of technology to ensure efficiency and the safety of online data.


In the early 1990s, data centers were slowly being reborn in places where old lumbering computers were previously placed and microcomputers, which are now called servers, are located in these areas. Many companies all over the world are dedicating special server rooms within the confines of their company to provide the availability of cost-effective networking equipment.

Around 1994, during the beginning of the dot-com era, the demand for fast internet speeds grew day by day. The continuous operation to deploy systems and create a presence on the internet was taking over. Companies were increasingly building their own server rooms to take advantage of the affordability of networking equipment.

The race to establish an online footprint was the reason for many to create their own data centers within their own company premises. Companies even had large facilities that provided them with a range of solutions for systems deployment and operational use.


From the beginning of the new millennium to the present, it’s easy to say that we are under the guise of computing technology’s holy grail. Companies all over the globe have at least one data center of their own. In the Philippines, data centersare constantly being set up and upgraded in order to keep up with industry standards and to keep their equipment up to date.

Data centers in the Philippinesand across the globe are utilizing the advantages of cloud computing technology. The largest companies and corporations in the world make use of data centers to provide its users with useful resources and information. Google, Microsoft, and Amazon heavily rely on data centers in order to cater to the online needs of every individual.

Data centers have come a long way, from one computer taking up a whole room to one room containing dozens of servers. Since its birth and rebirth, data centers in the Philippineshave played a large role in providing worldwide access to information. It was almost impossible to sell Internet-based resources in the past, due to the lack of data centers in the world. Today, Internet-based products sell like hotcakes.

Information is readily available through the internet. Cloud computing technology was turned into reality by data centers. We owe many of our technological advancements to the evolution of data centers. In the Philippines,many servers are being deployed to various companies every year. We can expect online data and information to constantly grow at a rapid pace.

Today, the average data center consumes energy equivalent to around 25,000 homes and 5.75 million new servers are being deployed in a year across the globe. The government alone has around 1,100 data centers today, compared to 1999, they only had around 400. Experts say that the world might need 400 million new servers by the year 2020 in order to accommodate the growing digital landscape.

Why We Need Data Centers

Why We Need Data Centers

We have evolved into a species that constantly seeks more data. As we increase the potential of our online world, we continue to demand smaller, faster, more efficient, and more powerful software and hardware. This need for processing power, storage space, and vast information are key requirements for the survival of the virtual space.

This demand has become a major reason why we need data centers. Anyone who uses or generates data in the online realm has a need for data centers. In the Philippines, many consumers rely on them, from government agencies, telecommunication companies, financial institutions, and social networking services. With the lack of data centers, providing fast and reliable access to online data may be a long shot, and this may lead to the failure to provide vital services.

Similar to the rising demand for web hosting in the Philippines, data centers are essential for storing massive amounts of data. Today, we rely on online storage we call the cloud. The cloud makes it possible to store and run data through the virtual space without having to be stored in our computers. We access the cloud through host servers and cloud providers. The cloud is being widely used for professional applications as it helps companies cut costs. The cloud is maintained by specialists and is controlled via hardware and software at remote locations. Clients and users can access this with the use of the internet. Where the servers of the cloud are located are at data centers.

The Facility of a Data Center

The Facility of a Data Center

To summarize what a data center does, it’s a facility that manages, stores, and distributes its data. An organization’s IT operations and equipment are responsible for handling all of these tasks. Data centers are the prime location for a network’s critical systems, they are essential for a company or an organization in order for their daily operations to run smoothly. With so much information exposed to online risks of compromise, security and reliability are of utmost importance for data centers.

There are varying and unique types of data centers and data center designs, but they can be classified into two groups: internet-facing and enterprise or internal data centers. The former is focused on maintaining many users and supporting a few applications; these types of data centers are heavily browser-based. On the other hand, enterprise or internal data centers cater to more applications and are tailor fitted to the needs of their customers.

Importance of Data Centers in the Philippines with Velcoms

In the Philippines, data centers will provide the companies with the services they need. Whether it’s the fiber internet in the Philippines or otherwise, we need the best online services in order to keep up or stay ahead of this modern world.

Data-driven and information hungry, people are adapting to this digitized landscape which means that only the best web providers will keep people up to date in this modern digital world. If you’re looking for a high-speed broadband internet provider that exceeds many expectations, click here to check out our services and products!

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