When a business’ computer needs outgrow the space at your location, your business has two choices: Choice 1- build a new data center; Choice 2 – lease space at a data center.

When a business’ computer needs outgrow the space at its onsite location, your business has two choices:

Option 1– build a new data center. This is a tough decision as the costs of building and the ongoing costs for equipment and personnel are high. Sometimes, coming to this decision causes company management to seek an alternative solution. This brings us to

Option 2 – lease space at a data center, this saves hardware and software costs, the monthly lease cost is expensed rather than amortized, and the expertise at a data center is equal to or better than most in-house or owned data centers.

The Business Case for Using a Data Center Vendor

There are several significant benefits gained by companies that use data center vendors. These entities all enjoy:

• Cost savings – obtaining space in a data center is less expensive that building it. The cost of a build-out and equipment. Cost is estimated at about $200 per square foot, cabling costs if you want the cabling to be fiber cost more than $10,000. While large corporations may be able to afford this expense, small and medium-sized business’ can more easily absorb the cost through monthly expensing of lease costs paid to a third-party data center. Also, scalability is easy in a data center lease agreement. It is seamless, and your company can quickly add cabinets as needed rather than having to overbuy for your needs today to get a good price on cabinet purchases.
  • Tip: Make sure the data center can absorb your future growth. To keep all options open, consider renting an entire server room for your current and future needs. Think regarding several years and not just next year.

• Reliability – Data centers are ultra-reliable as they are staffed 24/7. Also, your carrier services have a network presence found in the data center. This creates the ability for the center to help ensure your data gets processed in an efficient way.
  • Tip: Ask all potential data center vendors if there is around the clock staff on premise as well as 24/7 physical security.
• Security – When you use a dedicated data center provider you have around the clock security details as well as biometric logins at every entranceway. This offers you piece of mind in that you know that your data is protected both physically and with advanced technology.
• Carrier – neutral Connectivity – is another great feature of outsourced data centers. This allows you to connect to a carrier that meets your financial and business requirements.

Irrespective of the size of your company, it is business malpractice not to explore outsourcing data center needs to a data center vendor. There are several benefits and few drawbacks. With equipment and technology advancing at the speed of light, having carrier flexibility, ample power and cooling, and a location close to help weigh decision making, especially for small and medium-sized businesses, towards outsourcing.

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