- Organizations encounter significant capital expenditures, when building or updating their aging data center facilities, are faced with a difficult build vs. buy decision.
- Many organizations are hesitant to outsource the data center because servers are housed outside the facility and not within their direct reach.
- Co-location services have turned into a commodity where vendor offerings are underpinned by the same basic set of services.
Our Advice
Critical Insight
- Mid-sized organizations generally achieve a Tier 2 data center environment, at most, due to cost and resources. Co-location facilities generally offer Tier 3 or higher facilities where organizations can realize benefits of higher reliability and availability.
- A vendor’s engagement practices should be thoroughly examined during the selection process. Because basic services offered by co-location vendors are largely commoditized, vendor selection will often be based on price and service.
- The decision to outsource often results in a significant decrease in both OPEX and CAPEX (when building or renovating the data center) for facility costs such as power, cooling, standby power, and fire protection.
Impact and Result
- Justify the build vs. buy decision using business requirements and budget scenarios.
- Maximize success by aligning business requirements and vendor offerings with predetermined criteria to aid in the selection process for a co-location vendor.
- Validate decisions and perform due diligence on short-listed vendors by conducting site visits to vendor facilities.