Should you outsource or build your own Data Centre?

In the present scenario, data centre is one of the most critical facilities for almost every business.
It is a special kind of environment that houses a large number of computer systems, along with associated components. These components include redundant data communications, backup power, security devices and environmental controls. Ventilation, heating, fire protection and air conditioning systems, too, are undoubtedly critical components for system recovery and maintenance. And this is where a data centre helps organisations run smoothly. After all, if you can’t run the application or website smoothly, it will affect the services or products that you offer to your target customers. Affecting the user experience in an adverse way is probably the last thing that you would like to happen to your business. This is why, in order to avoid any potential chaos, you need to opt for a reliable data centre service.

While the requirement of data centres is obvious for each and every business, business owners need
to decide whether they would like to build their own data centre, or outsource the responsibility to a specialised third-party service provider. In order to take the right decision in this regard, below are the key aspects that every business owner should focus on:

Consider the core value activities of your business

Whenever it comes to choosing between outsourcing and building, you need to focus on your core competence. First off, you need to decide the key goals of your business. Do you want to increase your operational performance? Do you want to improve the efficiency of your employees? Or do you want to ensure improved customer service by focusing on the core value activities? Determining what are the core activities that create real value in your business helps you take sound business decisions. Activities that are business critical and also come under the core business function category, should receive maximum focus and attention. Make sure the time of your IT team is dedicated to perform activities that will contribute to the strategic advancement of the organisation.

Consider the advantages of outsourcing data centre

When it comes to deciding whether or not to outsource your data centre, you should keep a note of the many benefits of outsourcing your data centre. By now, most organisations, irrespective of their size, have realised that outsourcing data centres is probably the best possible way to align business and IT, and that too, in the most cost-efficient way. No wonder, the business benefits of outsourcing data centres are many – right from gaining better economical and higher operational efficiencies to enjoying proactive monitoring and managing the hosted IT infrastructure in an efficient way, there are many benefits of outsourcing data centres. It also helps businesses increase the satisfaction of the end users, without focussing on the core business areas. Here is a brief list of the benefits that one can enjoy by outsourcing data centres:

  • You can adhere to the constantly changing business requirements with the help of state-of-the-art infrastructure
  • By outsourcing data centres to a third-party agency which specialises in this service, you will be able to cut the operational costs to a great extent
  • It helps businesses act in compliance with the corporate governance requirements
  • You will be able to focus on your core business areas, enabling you to offer customised solutions to your customers
  • With a specialised service, you will get access to the latest technology and the most advanced tools
  • You will enjoy scalability, which is undoubtedly one of the key ingredients of business success, and scalable IT operations allow you to meet your constantly growing business requirements with ease

One notable advantage of outsourcing your data centres is that you can share the risks with the service provider. It is customary for reliable service providers to sign a service level agreement or an SLA, mentioning all the services that they are supposed to provide to you. In case they fail to act according to the promise, they are bound to compensate the loss one way or the other.

Studies show that the main reasons why most business owners decide to opt for a third-party data centre provider is that they get to access skilled expertise. A specialised data centre service provider is home to a number of skilled and experienced professionals. If you hand over the responsibility to them, all the challenges and business issues will be taken care of by professionals who are experts in the field.

These are some of the reasons why SMBs as well as large-scale enterprise owners prefer to outsource their data centres. High reliability, better energy efficiency and easy accessibility are some other reasons why businesses prefer to hand over this responsibility. While it is obvious that this helps them manage the functional and maintenance costs better, it also allows them to leverage the true potential of the IT infrastructure.

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