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Another question we’re hearing these days is the about the trade-off between colocation and dedicated servers with the down turn in the Michigan economy.
Dedicated servers are another way to convert IT capital expenses into operating expenses. In our last blog entry on colocation and cap-ex free IT, we spoke about how colocation can relieve the data center pressure by providing additional data center space on an as-needed basis without the capital expense or incremental personnel costs.
The same case can be made for dedicated servers versus colocation – as one moves up the data center delivery stack, dedicated servers provide the ability to expand computing resources without the capital expense required to purchase the equipment that might go into a collocated environment.
Granted, the additional capital expense to expand the HVAC, power, generator or UPS capacity can be far more significant than the capital expense related to servers, but the trade-off is there for CIOs and IT Directors to make between dedicated servers and colocation.
For many CIOs and IT Directors, it can be far more cost effective to leverage dedicated servers and eliminate the day to day maintenance and OS patch management on the servers rather than colocate their servers in a colocation data center.