The increased adoption of digital services fueled by the proliferation of smart devices, remote work and increased cloud computing is making it compelling for enterprises across the globe to invest in larger data applications and servers. Where to host these applications is becoming more of a commercial decision than an IT decision as businesses look at leveraging the outsourced model of data hosting.
The steady increase in global IT spending and current macro-economic issues in the country necessitated the need for businesses to leverage outsourced Data Center services to reduce cost and enhance operational efficiency. It has become imperative for businesses to outsource the management of their IT infrastructure to commercial data centers to enjoy extraordinary levels of performance, as against building in-house data center facilities from the ground up.
Outsourcing data centers help to achieve economical and efficient running of a business while reaping other related benefits, such as allowing them to focus on their primary business activities and flexibly manage their ICT infrastructures, without compromising on security and reliability.
Data Center outsourcing also provides the flexibility and scalability that growing companies require even as their needs and those of their customers continue to evolve. According to a recent survey of Fortune 500 companies by Forbes, most IT companies now prefer IT outsourcing, over in-house data center operations, the reason being the advantages that data center outsourcing has to offer. This includes minimized operational costs, better use of infrastructure, access to servers and computing/storage on demand, etc.
What then are the financial benefits of Outsourcing to a Data Center Provider?
- Zero Capital Expenditure and Reduced Operating Expenditure (OPEX)
By outsourcing the management of their data centers, businesses need not worry about installation and start-up costs that typically come with setting up an in-house server, neither do they have to plan for space (either bought or rented) to house their infrastructure or running maintenance costs for these facilities.
Businesses can pass on the costs associated with the day-to-day management of IT infrastructure, from power to cooling technologies as these providers typically have favourable rates with utility companies. Outsourcing to data center providers ensures access to uninterrupted power supplies (UPS) and redundant backup generators to keep your servers online even during disasters. It also comes with the added benefits of basic maintenance and management services.
- Bandwidth/Connectivity Costs
In addition to power and cooling, an investment needs to be made towards network connectivity for a data center facility. The preferred mode of connectivity, fiber comes at a premium price with factors such as uploads/downloads and speeds in play. By outsourcing to a purpose-built data center facility, businesses can access this fiber connectivity with redundant routes to the facility as well as access to a good number of network providers to ensure that the organization enjoys improved latency and connectivity when it comes to the Internet and other network-related tasks.
- Access to in-house IT expertise and human resources
Data Centers providers have in-house, certified data center professionals who have data center operations management as their core competence, and expertise in specific IT skills not found in basic IT departments. These engineers are charged with maintaining operational efficiencies of the data center infrastructure. They monitor and may even troubleshoot or fix server or network errors depending on contracts. Access to such human resources means businesses do not have to worry about overhead costs such as manpower or staffing to manage their servers, training, etc.
Need on-site help regarding maintenance, monitoring, or management?
MDXi data centers offer Remote Hands and Eyes Services (RHES) with dedicated and qualified engineers acting as your “eyes and hands” to perform various tasks on your behalf when you cannot physically visit the Data Center, saving you travel costs, logistics and other expenses.
- Flexibility & Scalability
Outsourcing to a data center provider gives the business the ability to add capacity quickly and only when needed without significant financial implications, which is much faster than retrofitting or embarking on an expansion for an in-house data center.
- Predictable costs, better budget control
Unlike building a data center, outsourcing to a data center provider immediately provides organizations with a predictable operational expenditure model which helps with financial planning and budgeting processes. The need to spend a large upfront amount of CAPEX as required during construction is eliminated with operational expenditure spread over several years. Typical costs for buying data center services are non-recurring costs for equipment set up and monthly recurring costs covering allocated space and metered power. Value-added services such as cross-connects, office space and remote hands services are usually paid for per use or determined at a pre-negotiated price point.
MDXi data centers, West Africa’s leading data center company offers colocation services with a focus on high availability, security, open-access connectivity and world-class support. By providing data center services to the open market, MDXi has reduced the entry barrier for large businesses and government agencies seeking to scale up their ICT operations, as well as technology startups and SMEs. By giving them the option to subscribe to services locally, such companies can focus on their core businesses, improve productivity and reduce downtime.