In today's technology-driven world, data centers play a crucial role in ensuring the smooth operation of businesses. The decision to implement a third-party data center or manage IT needs in-house is critical. This article explores the advantages of third-party data centers, highlighting key benefits such as scalability, expertise, reduced risk, and cost savings.
The Cost of Not Having a Third-Party Data Center
The absence of a third-party data center can lead to catastrophic consequences. For instance, Delta Airlines faced a data center outage in August 2016, grounding 2,000 flights and resulting in a loss of $150 million. On average, data center outages cost around $730,000 per incident, with some reaching millions of dollars. Implementing a third-party data center can dramatically decrease these risks.
Advantages of Third-Party Data Centers
One of the most significant benefits of third-party data centers is the economies of scale. Even simple tasks like hardware or software upgrades can become complex for businesses with multiple locations. With their larger scale and staffing capabilities, third-party providers can handle product rollouts more efficiently, often at steep discounts on hardware purchases.
By outsourcing data center operations, companies can concentrate on their core business. Managing an IT department can drain resources, costing hundreds of thousands of dollars and requiring ongoing training. Third-party data centers allow companies to focus on their primary goals, leaving IT needs to the experts.
Third-party data centers bring a wide range of expertise. Internal IT departments often need help to keep up with the complex array of desktop, mobile, and cloud-based platforms. In contrast, third-party providers work across various industries, offering certifications, clearances, and an unparalleled breadth of expertise.
Computer or network outages can be devastating. Many small to medium-sized companies need more resources for 24/7 IT support, leading to escalating costs during outages. Third-party data centers provide round-the-clock support, significantly reducing the risk and associated costs of an outage.
Combining economy of scale, reduced risk, improved expertise, and focus on core business, third-party data centers can result in significant cost savings. Organizations have reported savings ranging from 50 to 90 percent by utilizing third-party data center services.
Venturing into the world of third-party maintenance providers may seem intimidating due to concerns about technical competency, cost pressures, and security clearance. However, the benefits often far outweigh the risks. Third-party data centers have become an essential component of modern business strategy by saving money and providing expertise and quality beyond what many companies can provide internally.
- Delta Data Center Outage Cost
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Takeaways from the Article:
Benefits of Third-Party Data Centers:
Third-party data centers offer numerous advantages, including reduced costs, scalability, and expert management.
These centers allow businesses to focus on core activities while leaving data center management to specialists.
Cost savings come from shared infrastructure and efficient resource utilization.
Scalability and Flexibility:
Third-party data centers provide the flexibility to scale up or down based on business needs.
This adaptability allows businesses to respond quickly to changing demands without major investments.
Expert Management and Support:
Third-party data centers have specialized teams with in-depth expertise in managing and securing data environments.
Businesses benefit from 24/7 monitoring, proactive maintenance, and disaster recovery solutions.
Reduced Downtime and Improved Reliability:
Reliable power, cooling, and redundancy in third-party centers lead to minimized downtime and improved service availability.
Advanced technologies and redundancy mechanisms ensure data protection and business continuity.
Risk Mitigation and Compliance:
Third-party data centers are equipped to handle compliance requirements and security measures.
Businesses can offload the burden of regulatory compliance and data security to experts.
Main Point Reminder:
Third-party data centers offer cost savings, scalability, expert management, and enhanced reliability, making them a strategic choice for businesses seeking efficient and secure data management solutions.
- Advantages of Third-Party Data Centers
- Scalability in Outsourced Data Centers
- Data Center Management Expertise
- Reliability of Third-Party Data Centers
- Compliance and Security in Outsourced Data Centers