Ten Benefits of Outsourcing a Data Center

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outsourcing data center

This best-practices guide highlights the 10 key elements that differentiate an outsourced data center solution from an in-house operation.

6. Operational Expense vs. Capital Expense

Reducing IT costs is one of the leading goals CIOs are asked to reach every year. On average, it takes about $15 million dollars to build a 10,000-square-foot, 1 megawatt data center. Excluding the cost of power, the operating and capital expenditures to run and maintain the data center systems can add another $10 million to $15 million over 10 years. An outsourced data center provider will absorb the entire infrastructure operating and capital expenditures—savings that can be used for IT gear and talent.

7. Connectivity

Connectivity and latency are two essential elements of any data center strategy. Most top-tier service providers allow multiple carriers to provide service into their buildings. This diversity offers a tenant tremendous leverage in negotiating its telecom spending by opening up a variety of carrier choices with minimal provisioning timeframes.

8. Focus

CIOs with in-house data centers have to require key IT team members to spend a significant amount of time keeping their data centers running. These efforts siphon away time that could be spent enabling IT to develop strategies for higher-powered rack densities, virtualization and ever-changing data storage needs. In an outsourced data center model, the operator bears the burden of upgrading the infrastructure and building systems, which enables the CIO and IT team to focus on their highest goals and best activities to support the business.

9. Regulatory Compliance/Audits

In today’s business climate, more and more data falls under government or industry protection and retention regulations. Maintaining these compliance standards is difficult without dedicated staff and resources. The outsourced data center model comes with compliance and audit capabilities to satisfy SSAE 16 standards, the Health Insurance Portability and Accountability Act, the Payment Card Industry Data Security Standard, and many other requirements that challenge corporate data.

10. Ecosystem

The mixed-tenancy data center model provides an environment that is rich from an ecosystem perspective. Along with a wide variety of telephony options, tenants benefit from the ability to cross-connect in the same building with other companies that may be part of their supply chain, customer base or financial transaction functionality. This ecosystem benefit improves latency-sensitive interactions.

Due to the unique requirements of data center facilities and the growing need for data center infrastructure management, the selection of the outsourced data center site is essential to maintain uptime, mitigate risk, and achieve maximum availability and operating efficiency.

Tim Huffman is executive vice president and global director of Colliers International Technology Solutions Group. He has extensive experience in structuring complex data center and technology solutions, and is an expert in cloud and managed services applications.

This article was originally published on 2013-08-21
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