An HSBC data center located in Amherst, New York is set to be purchased by M&T Bank, pending approval by various authorities whose stamp is needed to go forward with the deal. The data center, which was slated to be closed down by HSBC, will continue operating under the new banner, as well as provide a few additional jobs for the region, which already benefits from M&T’s employ.
Data centers are the invisible backbone of the internet, providing the information that flows from the business or site in question to the computers on the consumer end. These massive operations provide the data demanded by business clients, casual browsers and other digital enthusiasts all over the world, and they have been growing continuously for many years. As cloud computing becomes increasingly popular (as well as its title being understood, as it is a relatively recent term), data centers will become increasingly important for digital consumers who rely on this type of platform to manage their digital lifestyle.
Online banking in particular is a hugely popular online service, used by extraordinary numbers of people; while not necessarily “popular” in the sense of eliciting positive emotions from its users, it retains eternally heavy traffic, which needs to be handled by massive servers and corresponding electric bills. Customers of all ages and other demographics use online banking, as it is something nearly all customers have the desire to use, and it is incredibly easy to sign in and deal with the account rather than step outside, drive or walk to the bank, and find out it was closed that day.
M&T Bank plans to convert the location into its primary data center, converting its existing unit to office space, and upgrading facilities to meet the expected demand and performance requirements for such a system. Job numbers have been claimed to increase, with M&T already providing thousands of jobs to the area in various capacities. The bank has been expanding in recent years, continuing its growth trends which have seen it expand continuously for quite some time, with numerous acquisitions, whether of a single data center or of entire banking institutions; M&T was one of the few large banks not significantly damaged by the economic crisis of 2007, and appears to be capitalizing on its relatively healthy market position by incorporating new businesses into its holdings while it has the capability to afford the lower cost of the ailing businesses (though it is unlikely HSBC was in a compromised position in this case).
For an undisclosed cost, but a disclosed $105 million bill for improvements to existing facilities, M&T is clearly banking (get it? banking?) on the data center being an important step toward maintaining quality online services for its digitally-minded clientele, which is quite clearly a sound strategic move, as younger consumers are more likely to be digitally connected than their elderly brethren which will, for well understood reasons, no longer be clients of any bank at all. And data centers are likely to replace a good number of physical banks in coming decades, as internet-based access is likely to become increasingly popular, displacing a good deal of traditional banking along the way. Online-only banks are proving rather successful, and have nowhere to go but up in the near future, and data center investments are likely a better move than location expansion.
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Read details of the services available from M&T Bank Online, which provides quite a few online and mobile options, or learn about those of HSBC Internet Banking.
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