Colocation data centre service providers are in a rapidly growing market: increasing numbers of businesses are eager to use them. Why is this happening? Does a data centre really hold clear benefits over an in-house solution?
Cost plays an important role here. There is a significant cost involved with establishing and maintaining an internal data centre. For a new business, the setup cost in terms of hardware, software, floor space, cooling systems and cabling is often exorbitant. Since the business has to plan for future growth, it could mean that the internal data department, including staff members, will be under-utilised for a long time.
Maintaining a data centre is also a huge expense. Operational specialists such as system administrators, engineers, computer operators and programmers do not come cheap, while planning for unexpected demand surges could mean that a business has to employ more staff members than required during ‘normal’ times.
The economy of scale that can be achieved by using an external data centre provider such as Telecity is hard to dispute. In the first place, the upfront cost is less than that incurred by setting up your own internal data processing and storage departments. Secondly the need for a large number of highly paid staff members is eliminated.
Switching an existing internal data department to an external data centre can also mean freeing-up business-critical staff members for other tasks, which is especially useful for SMEs. The energy cost of running internal servers can also be significant, as is the ongoing expenditure involved in maintaining and replacing hardware and software on a regular basis.
A rather obvious factor is also often overlooked when considering using internal servers: floor space. External data storage providers free up valuable office space, which could then perhaps be used to house more sales staff.
Any which way it is looked at, external data storage makes good business sense, especially with a recession looming; if your firm is about to install its own servers, now is definitely the time to consider offsetting the costs and effort by using an external provider.