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Why Should You Consider Outsourcing Your Data Center?

February 26, 2014  |  Written by Chris Downie, Chief Executive Officer

According to a new report by DCD Intelligence, almost a quarter of data center space in North America is outsourced, and investment in data center outsourcing is expected to increase another 15 percent by the end of 2014 from $8.8 billion currently. It’s clear that more and more businesses are starting to recognize the benefits of data center outsourcing—and that’s not expected to let up any time soon.

But for businesses not yet aware or convinced of the benefits of outsourcing their data center, why bother? What advantages does outsourcing your data center provide over owning and operating your own data center?

As it turns out, there are many benefits to outsourcing your data center. Have a look below for just a few reasons why outsourcing is something your business should consider:

  • Outsourcing is cost-effective. An obvious benefit to outsourcing is its cost effectiveness; the time and money invested in housing your data is generally much lower when you go through an outside provider. When you outsource to a provider like Telx, you pay by the amount of power you draw. The costs of infrastructure are already worked in, which certainly isn’t the case when operating your own data center. What’s more, because it’s so flexible—which we’ll discuss in more detail below—your space can be reduced or upscaled without much additional investment on the consumer end.
     
  • An outsourced data center is scalable and flexible. When you own and operate your own data center, any additional capacity or bandwidth you need down the road require more investment in hardware and other associated costs. Outsourcing, however, provides great scalability and flexibility; customers who need more (or less) space can work with their provider to purchase additional space. When outsourcing, any unneeded space can be scaled down without losing money you would’ve otherwise invested in hardware, and any additional space can be easily added as your business or needs grow.
     
  • Outsourcing your data center mitigates risk. One of the greatest advantages of outsourcing your data center is its mitigation of risk. Both because of protection from physical threats—theft, vandalism, and even natural disasters like hurricanes—and because of ease of compliance with SOC 2 standard, a business’ risk is greatly reduced when it outsources to a data center provider known for its security and compliance. Telx also offers 100% uptime SLAs, ensuring reliability on top of the benefits we just mentioned—which can be expensive and difficult to replicate when running a data center on your own.
     
  • Outsourcing can assist in compliance and security. Proper data centers not only mitigate the risk of natural or man-made disasters as mentioned above; outsourcing also provides great advantages for compliance and physical security. While compliance can be difficult and expensive to maintain in-house, outsourcing allows you to depend on the data center provider to protect and manage your assets and data (you can learn more about compliance as it relates to Telx here). What’s more, outsourcing often provides increased physical security and protection from theft, vandalism, natural disaster, man-made catastrophes, and accidental damage.
     
  • When you outsource, you also get increased support. Unlike owning and operating your own data center, an outsourced data center comes with full-time support and assistance. Here at Telx, for example, our Technical Support Operations group is available 24/7, 365 days a year, providing technical assistance as needed. Choosing a data center colocation provider that provides this sort of assistance helps to alleviate any technical concerns that would otherwise have to be taken care of in-house.
     
  • Outsourcing allows you to focus on your core competencies. Outsourcing your data center needs to a company that specializes in data center services allows you to focus on your core competencies and avoid distractions. When your company needs to spend time focusing on data center services in-house, it can take away from valuable time and resources that could otherwise be used developing your primary areas of success. Outsourcing is a great solution because all of your time and resources will go where you need them most—not to data center projects that another company could take care of for you.

While outsourcing your data center may not be ideal for every single business out there, outsourcing is a logical, cost-efficient, and secure solution for most business’ needs. If you’d like to learn more about Telx’s outsourcing solutions and how they can fit your business, please reach out to us via the contact page of our site, or by Facebook or Twitter.

Chris Downie

Chris Downie

Chief Executive Officer

Chris has over 24 years of experience in the finance and communications industries. From June 2007 to August 2013 Chris served as President and CFO of Telx. Prior to Telx, Chris was responsible as CFO, COO and ultimately Principal Executive Officer for leading the finance, operating and corporate strategy for Motient Corporation, a leading satellite services company developing expansive communications platforms in North America. Before Motient, he served in varying financial and operational consulting capacities for communications client as part of Communications Technology Advisors (CTA). Before CTA, he was a co-founder and Chief Financial Officer for a competitive telecommunications company, BroadStreet Communications. Prior to his operational roles, Chris spent 10 years in investment banking executing corporate finance transactions in the communications sector at Daniels & Associates, LP and Bear Stearns & Co. Inc. He holds an MBA from New York University and a BA from Dartmouth College.