Develop a Co-location Strategy

Successful data center co-location strategies are a function of cost and vendor selection.

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Your Challenge

  • 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.

Develop a Co-location Strategy

1

Determine if the organization is a fit for co-location.

Gather facility requirements and baseline cost information, and validate the build vs. buy decision.

3

Evaluate vendor offerings.

Align vendor offerings with business requirements, evaluate vendor proposals, and perform vendor site visits.

4

Manage the vendor relationship.

Construct comprehensive SLAs and assess the co-location relationship annually.