Summary: Administrators outsource their data center to stay current with technology. However, there is also a positive business impact. The business will meet higher compliance standards, face lower costs, and have better uptime. The downside is the complexity of the migration and choosing the right data center.
There is a growing concern amongst data center administrators that in-house systems will no longer match the growing technological gap with outsourced data centers and cloud providers. However, there is another aspect to the shit towards third-party data centers, and that is the actual business impact of the change. Here are some of the benefits and risks to the business when you outsource your data center:
There are three primary benefits. The first, higher uptime, is only possible because all the customers of the data center bear the cost of redundancy in power, network, and cooling. Another main benefit is cost; data centers purchase power and bandwidth at much larger discounts than smaller organizations. The data center passes that benefit to its customers. Finally, there is compliance. Organizations face higher and higher compliance costs for everything from data center standards to security. With an outsourced data center, the high cost of compliance is divided, giving the organization a higher level of compliance.
The risks are not as substantial as the benefits. Most of the risk lies in the complexity of moving to a data center and then managing operations. The migration needs to avoid any downtime and maintain operations in a way that is seamless. Also, it is critical that data center selection process if thorough, as moving a second time will be costly and time-consuming.