In-House Or Outsource – Your Data Center Infrastructure?

Outsourcing data center infrastructure

Setting up your own data center is expensive in terms of money, time and deployment of human resources but it is more efficient to outsource this service, which will save your company costs and allow the business to focus on core competencies.

According to WiseGEEK answers, infrastructure outsourcing is a subcontracting service in which the management of an organization’s IT systems and applications are handled by a third party. This service enables enterprises to achieve high performance, to cut costs and sustain profitability.

Besides reducing costs, IT infrastructure outsourcing provides a management model that allows organizations to move away from complex and inefficient IT environments and build IT capabilities that are more agile, reliable and responsive to their business models. The management of a company’s IT infrastructure and applications is often done from a remote location. Some customers choose local providers, while others prefer to outsource offshore.

What should be considered when signing an infrastructure outsourcing agreement?

  • If the management of a customer’s network routers and switches, security mechanism, desktops and peripherals, disk storage and bandwidth is also ensured by the provider, it is very important to have a clear understanding of the capabilities of the providers in-house IT department. However, the provider and the customer should collaborate in order to obtain a solution that best fits the customer’s needs and business objectives.
  • Costs. When comparing in-house data center infrastructure with outsourcing to an external hosting provider, the customer should calculate all the costs of an internal facilities and then compare these to the annual costs of external hosting. By costs of internal facilities I mean costs of licensing, maintenance, security power, connectivity, cooling, property costs, staffing resources.

As I mentioned in the beginning of the article, the final goal of outsourcing the data center infrastructure is to ensure the business development. Either this is done in-house, external, or through a hybrid solution, I recommend every single organization to go through a business impact analysis in order to determine the value of each process to the organisation and to establish the most appropriate solution.

By Rick Blaisdell / RicksCloud

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3 Responses to In-House Or Outsource – Your Data Center Infrastructure?

  1. I think outsourcing is much cheaper and can save you a lot of money, instead of setting up your own data center.  There are a lot of outsourcing companies now available worldwide that offers a much cheaper package, it depends on the country and the state of their economy the rate that will be given to you.  You just have to make sure that everything is understood and properly documented.

  2. I would say that cost has to be the number one driving factor for outsourcing the data center infrastructure. It has been the trend nowadays. The drive is to outsource work to employees or companies that could perform and produce the desired output at a much more affordable cost.
    This could be tricky and harmful for the business if not done well though. So, choosing the right people should be given more importance. Also, finding out a system that works well for you is one of the key considerations. For instance, I know of some companies that have data centers in-house but are maintained by full time outsourced staff. This worked well for them. You could get good working full time IT staff from online job sites now by the way (services like for instance).
    Bottom line, outsourcing work has been a practical move for businesses nowadays especially in IT. You just have to know how it should work for you, when you should apply it and who should work for you. Then, you’re off to a good start.

  3.  I agree that cost will be main driving factor. Companies can significantly reduce operating costs for maintenance of their data centers. The content of highly skilled workers on a permanent basis in the company is costly and often not the optimal approach to the maintenance of existing infrastructure. For small data centers, cost is significant because despite the relatively small size of the data center, the complexity of the technologies remains high. Clients who use data-center outsourcing primarily interested in a guaranteed level of availability, that is, availability of equipment. This trend of technology forces companies to reduce costs and improve service quality to abandon the traditional model of its own infrastructure. It can be noted that outsourcing services are focused not only on technical support and maintenance of infrastructure, but also the ability to assist companies to restore the health system after the accident.

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