Building A Data Centre vs Outsourcing
23 October, 2014
From financial services and online shopping to educational resources and personal storage, the demand for data storage facilities is continually on the rise. Yet businesses are often faced with the difficult decision of whether or not it’s best to build an exclusive data centre or outsource storage to another provider. To help shed some light on the matter, we’ve put together this useful guide offering first hand insight into the pros and cons of each option.
Data Centre Build
Enhanced control: For businesses and organisations that demand tight control over data, an in-house data centre with restricted access is hugely appealing. This is particularly important for organisations such as hospitals, councils, governments and communications providers which deal with sensitive information.
Scalability: When a business operates its very own data centre, it has the power to grow and evolve with its customers. Companies such as ITE Projects offer a comprehensive data centre upgrade and expansion service which helps businesses expand their centres quickly and efficiently.
Cost: The major downside of commissioning a brand new data centre is the initial outlay of cash. That said, in the long run the cost of a data centre build will often end up being less than the cost of outsourcing to an external provider for an extended period of time.
Outsourced Data Centre Services
Pay as you go plans: One of the major pros of outsourcing a data centre service is the ability to pay as you go. This gives businesses the flexibility to only pay for what they need.
Less maintenance: When outsourcing to an external provider businesses enjoy a complete service with none of the associated maintenance or upkeep costs. However on the downside, these savings are often replaced with increased rental costs.
Less flexibility and control: When outsourcing to an external provider, businesses automatically sacrifice flexibility and control. Data is entrusted to the provider in question and while most companies have stringent security in place, clients do not enjoy 100% peace of mind.
Compliance risks: While most remote service providers comply with government regulations, your business and its reputation could be put at risk if associated with a non-compliant data centre provider.
Service: Due to the fact that data centre providers generally outsource to several different clients, your business may not always receive the attention it deserves. In the case of emergencies and disaster recovery situations, a lack of immediate service and accountability can be extremely damaging.
At the end of the day the best course of action is to closely assess the individual situation and choose an option that best suits the needs of your business. For smaller organisations, it can be more economical to outsource storage. For large corporations, the convenience, flexibility and scalable nature of an exclusive data centre is a major draw card.