Ernest Sampera is the Chief Marketing Officer of vXchnge, a carrier-neutral colocation services provider that helps improve the business performance of its customers.
When businesses are on the fast track and experiencing growth, they often find themselves in need of additional storage space for their data. Whether it’s adding additional applications for email, streaming or other critical resource-intensive applications, businesses must make the decision to lease data center space or build an in-house storage infrastructure.
Whether looking to support critical applications or simply manage day-to-day operations, the IT needs of every company vary. Eventually, the right decision comes down to what offers the best advantages and which strategy maximizes the organization’s data storage total-cost-of-ownership (TCO).
There are a number of factors to consider when making the decision of whether to own or outsource a data center, including virtualization issues, different cloud computing environments and simply, the way companies handle different IT issues. It is important to analyze all options in order to make the most appropriate decision that best suits a business’ needs.
Building Your Own Data Center
If building out an existing property, the estimated cost is around $200 per square foot to build a data center, according to Forrester. Additionally, to have fiber installed on the site can cost over $10,000 per mile to simply reach your location. Larger companies have extensive financial resources to cover all construction and fiber costs and are able to handle an influx of staffing and IT needs including infrastructure maintenance, around-the-cloud monitoring and the additional cooling that may be required. This means that building an in-house data center may make the most sense in the long term for a larger company with expansive amounts of data.
Outsourcing to a Reliable Data Center Provider
Smaller companies, including those with cloud compute solutions, require a certain amount of data storage space in order to grow its business. A startup may require only a small amount of cabinets, three or four, for example, yet complete dependency for connectivity is required. In this case, due to the cost, it is prohibitive for a small company to build its own data center infrastructure.