Building a Data Center VS. Outsourcing: Making The Right Choice For Your Business

Posted 12.27.21 by
Brandi Jaylin
Blog

When it comes to deciding whether to build a data center or outsource the management and support and day-to-day IT operations, there are a number of factors to consider. For companies that have a lot of IT and data management needs and require a wide scope of services to manage their data, sometimes building their own data center is the right choice. That is to say if such a company has the finances and other resources to manage the heavy burden of building and running a data center, then the company can have complete control overall operations.

To Build or Outsource?

With total control also comes the total responsibility for every aspect of the data center. From staffing it with personnel who are experts at running a data center to the maintenance and upkeep of all the support features necessary to keep things running smoothly. These responsibilities include: environmental, fire prevention and suppression, infrastructure, power, backup systems, and data connection integrity.

Building a data center has its benefits, but it is a huge task, and can cost a substantial amount of money. Research firm Forrester estimates the initial cost for building the data center shell plus physical security is $200 per square foot. For many companies, the best option is to outsource to a cloud service provider and deploy a Virtual Private Data Center.

The Benefits of Outsourcing

The most obvious advantage to outsourcing is little to no upfront cost when compared to building a data center. The cost to outsource services to a cloud service provider is primarily operational and offers a more predictable expense.

Outsourcing also provides a company with access to the cloud service provider’s ability to get the best services through its purchasing power. With responsibilities for space, power, and connectivity left to the cloud service provider, the company outsourcing its data needs can focus on its data’s management and how best to use that data for their business.

When outsourcing, a company also has the flexibility to scale up its services as required. Another major advantage to outsourcing is the expertise available. Data center professionals are experts in the efficient operation of all areas of a data center facility.

The Bottom Line

For those organizations that do not have the financial resources to build their own data center, the option to outsource those services to a cloud service provider offers several advantages, like predictable costs, scalability options, and the expert management of a data center.

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