Competitive pressure, a shortage of skilled workers, technological developments, increasing environmental requirements or strong growth often bring companies to the point of reviewing their long-term IT strategy. Often the question then arises, do I buy data center services from an external service provider or do I continue with my on-premise strategy? This is certainly not an easy decision, especially since it touches on many company-specific and complex issues. However, the use of colocation, i.e. external data center services and expertise, is gaining momentum and there are many, good reasons for this. We would like to discuss these in this article in order to provide some support for readers who are currently grappling with the make-or-buy question.
Colocation advantages
The most important criteria for using colocation are cost, availability, bandwidth, scalability, environmental protection and site distribution, which we will now discuss in a little more detail.
Costs
Building a data center is complex enough. Operating and optimizing it is no less complex. In addition to financial resources, a great deal of experience is required to operate a data center professionally.
In addition, it is difficult to always stay up to date with the latest technology. Rented infrastructure incurs significantly lower costs. This is because by outsourcing their own data center, companies benefit from the economies of scale of the colocation provider. In addition, the investments are easier to plan and can be flexibly adjusted at any time in the event of changes in demand. Other aspects include support and advice from experienced system administrators, carrier-neutral Internet connections, significantly higher bandwidths and redundant availability. These services are already included in the monthly rent.
Availability
Probably the most important criterion for the operation of IT systems is reliability. To ensure continuous availability of data and services, security and building infrastructures such as cooling, emergency power, data lines, etc. must be kept redundant.
Many companies opt for an on-prem data center because they want to retain control over their systems. In fact, the security measures in the data center are usually much more sophisticated. With (biometric) access controls, complex sensor technology, cross-building video surveillance and fire protection measures, modern data centers are generally far superior to data centers designed in-house.. The feared loss of control does not occur because, as before, the company's own hardware is operated in a closed area, with 24/7 access if desired, only under higher security standards.
Scalability
The need for data center space or colocation racks can change over time. While the planned data center capacity can quickly become too large or small in in-house operation, colocation providers offer a high degree of scalability. The service packages can also be determined according to requirements, so that in certain cases the deployment of service technicians on site in the data center via remote hands service can be more efficient than constantly maintaining your own IT personnel.
Environmental factor
The requirements of the authorities for energy efficiency in companies have increased massively in recent years. Certifications for environmental and energy management systems are therefore on the rise. But also savings potentials for the increasing energy demand with additionally rising electricity prices, play a role here. Around 8,500 organizations in Germany have had an energy management system (EnMS) certified in accordance with the ISO 50001 standard by the end of 2019. This is another reason why demand for colocation is increasing, because colocation is more ecological than running your own data center. The larger a data center is, the more energy-efficient it can be operated. This includes economies of scale in redundant infrastructure, cooling and monitoring technology. Colocation providers strive to achieve maximum energy efficiency, as electricity accounts for the bulk of their costs. Data center operators therefore continuously renew their technology stack in order to be able to save electricity. However, those who operate their own data center will want to use the systems for as long as possible due to the high investment costs. As a result, power consumption remains at a more inefficient level for a long time.
Location distribution
Many colocation providers - like ScaleUp - offer their colocation several locations an. The various data centers with their own power and Internet connections can be networked together, e.g. for load balancing, as a backup solution or also to reduce latencies.
ScaleUp operates state-of-the-art colocation and housing space in Hamburg, Berlin and Düsseldorf, at a total of 7 locations. We are at your disposal for Queries available and explain the advantages of externally hosted IT systems.
