The Business Case for Colocation of your Data Center

by | Colocation

Executive Summary

Digitization and new breakthrough technologies like IoT may have a great impact on the Enterprise landscape. However, users transacting on platforms and applications like e-commerce, social media, and day-to-day usage application systems are creating the data explosion.

With intense competition the best way companies can sustain in the marketplace is by understanding users – customers, prospects, partners and society. Therefore, it now becomes critical that data is available on the fly for various types of analysis for decision-making.

A colocation data center is a strategic opportunity to place your data either closer to your supply chain partner or any other stakeholder as plug-and-play operation. A colocation facility will deliver a compelling ROI from Finance, Operations and top Management perspectives in terms of cost versus value, uptime and business effectiveness.

Preparing the Business Case

Start with an approximate dollar value on the business problem<

Make a list of issues faced by your data center setup. The list can include staffing, downtimes, management and focus away from critical tasks and so on. Now add an approximate value of what you feel is the value in terms of dollars and cents against each item in the list. This is the value of your business problem in relation to a Data Center.

A growing concern among companies is the utilization of energy and the need to grow sustainably. A non-redundant operation, which contributes to reduced usage of power, will not only help manage cost but enable sustainability and positive image of an enterprise willing to do their bit for the society.

Prepare the cost sheet – Tangible and Intangible

Now total up all the cost involved if you have to transition to a colocation center:

  • IT Hardware &Software
  • Non-IT Equipment
  • Staff – Transition & Management
  • Executive Time

Put all the above items in a spreadsheet; add an extra percentage of any overheads that you might think is not tangible.

Finally, the difference between A & B will give an idea for you to prepare a more detailed business case.

Is it all worth it?

First, it allows IT, experts, to focus on core competencies of the organization and frees up time. Colocation also removes the cost of equipment as a line item from expenses and just add a recurring fixed operating expense. Colocation provides immense flexibility to scale up or scale down operations as needed by business demands. Colocation also provides a completely redundant IT infrastructure managed by experts without the hassles of upkeep and maintenance of the facility.

About DataCenterAndColocation: ( ) has been providing retail and wholesale colocation consulting to major companies since 2009 offering data center colocation and hybrid colocation services. They are one of the largest no up-front-fee, non-bias colocation and cloud consulting companies in the United States with a long list of satisfied clients ranging from hospitals, manufacturing, financial and the service industry.