Ben Hatton How colocation can save you money

March 4, 2015 by · 1 Comment 

Piggy bank

The costs involved with running a data center are very extensive.

We’ve written a lot before about the buy vs. build decision when it comes to data centers, and how buying colocation space at a data center like Data Cave is virtually always the better decision from both a security and financial perspective. And while we’ve touched before on what some of the costs involved with running your own data center can look like, I want to explore this in greater detail for those of you who may be considering the “build” option.

If you build and run your own data center, you should plan for these 3 major cost areas:

Facilities: This includes the up front capital expenditure to physically build the data center, as well as all of the ongoing operational costs associated with managing and running the facility. Everything from the day-to-day maintenance to the purchase of new equipment to the mortgage or lease payments on the building are covered by you, the builder, in this situation.

People: Data center facilities require specialized staff to keep them in operation, and all of the usual employment costs associated with running any business will also apply to the people responsible for running your data center.

Downtime: The big thing that nobody ever wants to think about, the cost and the risk of downtime will be your burden to bear when you manage your own data center. A single downtime event can immediately begin to cost your company money in a number of different areas (for an idea of just what areas, check out our Downtime Calculator). Knowing what your facility’s risk for downtime looks like, as well as how it can impact you financially, are critical when evaluating the “true” cost of running your own data center.

Another important point to remember about downtime is that it’s very hard to fully prevent. Places like Data Cave have highly invested in infrastructures that completely minimize the chance of downtime occurring, and it’s the driving force behind much of our decision-making. Downtime prevention requires a long-term strategy and a long-term investment, both of which are highly difficult to achieve if you aren’t actually in the data center business.

The financial benefits of colocation

These cost areas are just a taste of what you could expect financially if you opted to build your own data center. All of these considered, I guarantee that the 3rd party colocation option would be the much more feasible financial option for you, regardless of your company’s size. Not being responsible for each of these financial burdens allows you to free up resources for projects that are more in line with your business’ core competencies, while leaving the security and physical aspects of your infrastructure (space, cooling, power, etc.) to the professionals who are considerably less likely to ever experience downtime.

To learn more about some of the other key benefits of colocation, I’d recommend checking out these additional resources, or Contact us if you’d like to have a chat about it as well!

Whitepaper: Top 10 Reasons to Colocate

Slideshare Presentation: Buy vs. Build-The case for Data Center Colocation

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One Response to “How colocation can save you money”
  1. Callie Marie says:

    Colocation is a completely new concept to me so I’m glad you gave such good information about it. I would never have thought that building an in-house data center could cost you so much money. It seems like new companies especially would benefit from storing data in this way.

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