Which is preferable: In-house Data Center Management or Data Center Colocation?

by | Colocation

Is your company at a crucial juncture in your business where you need to make an important decision about your data center? You started off as a small company and evolved as a thriving business and can no longer manage with a couple of closeted servers to manage all your data and IT requirements. Now you are facing a real challenge with having to contend with overheating, additional power requirements, lack of generator backup, lack of security, or you may require multiple fiber carriers. Looking for viable alternatives can be a challenging and time-consuming exercise.

In most cases, in-house data centers are already facing redundancy issues as they have reached the end of a lifespan, and these in-house facilities are no longer functional. Most of these companies need to decide whether they are going to upgrade or opt for the best alternative – colocation. Of course, there are still some businesses that are managing on a shoe-string budget, forcing them to look for shared data centers as the next best alternative.

When it comes to taking into account capacity and cost-savings, a colocation data center offers the best solution as it offers the CTO the best option to maintain a firm grip over the ownership of the prized assets of the company.

Let’s take a quick look at the pros and cons of In-house data management vs data center colocation:

In-house Data Center

The in-house server room, or data center as it is often referred to as is the on-site facility that the company maintains and is taken care of by the company’s IT department. It is located within the office premises of the organization, where the onus is on the company to maintain the power needs (including backup), cooling requirements as well as bandwidth and the security aspects. Some companies do find it remunerative to lease whatever surplus space they have to help save on costs.

The Pros of an In-house Data Center

  • You have total control and access, as well as the liberty to implement any modification and expansion
  • All the hardware is located at arm’s length and staff have no difficulty trouble-shooting
  • The IT department can take care of the security aspects and implement suitable measures
  • An in-house data center has complete data access control, which helps meet most regulatory requirements
  • There are no SLAs to contend with nor are there any variations in the licensing costs

The Cons of an In-house Data Center

  • The onus is on the in-house staff. All responsibility rests with the in-house staff members, 24 hours a day, 7 days a week
  • Space and capital construction costs and constraints fall flatly on the enterprise, often proving to be a lot higher than colocation costs
  • Erratic internet connections and overall redundancy can play havoc, especially with small and mid-sized businesses who find a challenge even in the lack of a proper emergency backup
  • Any small or large catastrophe can prove to be a challenge for any on-site disaster recovery activity
  • In-house facilities face a challenge when it comes to expansion plans
  • As companies grow, the in-house data center floor space can be alternatively used up for additional workplace
  • An in-house data center limits the company’s ability to move to a new office space easily

Data Center Colocation

A colocation data center is a facility that thrives on shared space; allowing the businesses the luxury of extensive cost savings as the space for servers and related hardware are shared jointly with many other businesses. It is the responsibility of the colocation facility to provide the space, power, backup, internet connection (bandwidth), HVAC, and security as well. The colocation data center has to also maintain all the infrastructure hardware and meet the prescribed SLAs. Space is normally leased in terms of rooms, cages, cabinets or racks. A colocation facility is not considered a public cloud although it does offer some management services that are discretionary, and some offer private cloud services.

Pros of Data Center Colocation

  • Major benefit lies in a sizeable reduction in costs. Even the cooling and power costs work out a lot cheaper as they are shared by multiple users.
  • Uptime is maximized, thanks to multiple dedicated internet and redundant power connections
  • Local outages hardly have any impact on operations as colocation facilities offer redundant data centers that enable disaster recovery options
  • Colocation facilities offer unmatched security features that are often unaffordable by in-house data centers
  • Most data centers offer required certifications like HIPAA, PCI DSS, SSAE 16, ISO and SOC
  • 24-hour remote hands are available to resolve issues and handle emergencies
  • Expandability is generally not an issue in a colocation facility

Cons of Data Center Colocation

  • The immediate accessibility of IT equipment can be a challenge affecting troubleshooting and maintenance
  • Initial moving costs are quite high and pose a problem throughout the transition stage
  • Maintenance downtimes may not be scheduled to suit individual needs
  • The responsibility for some compliance and regulations ultimately rests with the organization and not the colocation facility

What it all boils down to

There are a plethora of colocation service providers with varying quality parameters and contracts that spell out their own terms of service. The cost also may not be uniform, leading to confusion when zeroing in on a colocation facility.

The irrefutable fact is that a colocation facility never compromises when it comes to hardware maintenance and offering unwavering support solution. A company like DataCenterAndColocation.com offers unmatched support for selecting the best and most cost-effective colocation facility. The cost savings that accrue to small and medium enterprises are quite substantial. To learn more about how you can easily transition from your current in-house to a managed colocation facility contact us now.

About DataCenterandColocation
DataCenterandColocation is a free professional and non-bias service provided to clients for selecting the right data center, colocation, managed hosting or cloud facility for their requirements. DataCenterandColocation is one of the largest colocation site consulting firms in the United States. They represent approximately 3000 data centers and colocation centers in the United States and Canada. At no cost to clients, they identify specific space, location, power and security requirements, solicit proposals, professionally analyze the responses, compare the strengths and weaknesses of each facility, negotiate to price and deliver highly competitive bids for colocation. They also perform a comparative analysis of in-house vs. design-build services, wholesale data center space, and data connectivity.