Data Center Outsourcing

When data center outsourcing is mentioned out of context, people who hear it unintentionally get the impression that it's the same shady business practice some companies applied to their workforce. Those who have lost their jobs during the recession will have a sour aftertaste in their mouth just by hearing the word 'outsourcing', or simply sourcing. Done properly this process doesn't have to be the synonym of work force reduction, or 'You're getting laid off because we can't pay you enough'.

Data center outsourcing is simply deciding to have another company create, manage, and supervise your data instead of doing it yourself (it may save you from having to worry about data center migration once your servers start getting full). It should be a means to reach optimal efficiency within the company. Why would anyone want to start constructing a complete data center behind company gates when they don't need or can’t make good use of all of its features? It'd be a waste of resources, which is more important to avoid now than ever. Operating at less than a 100% efficiency sets the business back, often by enough to lose not only short term advantages, but middle and long term prospects too.

Outsourcing your data center may imply a smaller team working for the company on the short term, but it also helps those who specialize in the field to prosper and increase their staff. Put simply, it means that John, the IT guy won't have to struggle with servers alone in the basement, but will have the opportunity to take a more responsible job higher up the command hierarchy in the company, or work for an organization that specializes in the task he used to deal with.

If your company already owns an IT infrastructure it will mean workforce reductions, obviously, which doesn't sound good these days. If, however, you don't own a proper data center, you might want to sell every server you own and delegate its functions to some off-premise experts. It may not result in obvious savings in the first few years, but it doesn't take a financial guru to factor in the costs of upgrades, disaster recoveries, and replacements. A financial advantage over the competition, however small the gap might be, can be all it takes for you to get off the ground.

Advantages of an Outsourced Data Center

Server rooms draw some serious electrical currents and the electricity bill is not something you want to keep up with. Avoiding these costs is one of the biggest benefits of working with data center outsourcing services. Of course a service contract includes these expenses, but when you only get a small corner in a huge data center, the upkeep costs are easier to digest. Think of it as sharing an apartment with friends. The TV subscription looks much friendlier when you divide it into three parts.

Another advantage is that you no longer have to deal with scrubbing data. Keeping the data clean, organized, and accurate is now the job of someone else. Anyone who has been in this business for long knows that a lot of effort goes into data scrubbing.

If you’ve outsourced, you also don't have to deal with recruiting and training staff who will install and maintain the servers. There are also no HR related expenses. Basically, you don't have to care about more paying the fees that are in the contract. Simplicity is nice.

Another job you don't have to worry about is document indexing (yes, we know you'll be sad to let this one go). The time consuming task of labeling and providing meta-data for all of your information will be someone else's responsibility.

An outsourced database offers better flexibility. Let's say you're in a fast food restaurant, and order a cheeseburger. They don't have to heat the oil, mince the meat, make the patty, and slice the cheese. Why? Because they have already done it. One cheeseburger is a negligible increase in their daily workload. Your database requirements will likely be the same for a data center service provider.

However far-fetched the metaphor may seem, it's apt in the sense that your workload for a huge centralized datacenter will be small enough to let them use their existing infrastructure, but big enough so that they can meet their end of the contract. It's also easy to see how much flexibility your IT services gain just by letting the professionals deal with the details.

IBM has been the market leader on data center outsourcing for so long that the name of the company is almost a synonym for server management. It's worth a shot to ask around and see if they can deal with the type of service you require. They most probably can.
Outsourcing your data center is not for everyone and here are some of the advantages of having the data center on-premise.

You own the hardware, you own the software, you employ the people who work on both, and you have complete control over your IT department. If anything goes wrong, your own team will fix it. If something needs to be upgraded, you consult with your IT team, whom you've known and trusted for years. Let’s face it; your own team is more likely to do what you want than an outside provider. They have ownership over the data center.

For most companies, an outsourced data center is probably going to make more sense. However, for companies who want complete control over the data, and have the necessary expertise, having your data center on-premise might be a better idea.