Ben Hatton The benefits of data center consolidation

July 28, 2015 by · Leave a Comment 

I’ve written a lot about how data center colocation can help your business grow, especially if it is growing faster than your current data center can keep up. However, we don’t often think about the other side of the spectrum, where an organization may be so geographically spread out that it becomes more efficient and cost-effective for them to consolidate multiple data center locations into one. While this practice is sometimes a necessity for some businesses, it virtually always brings major benefits that I want to highlight in this post. Data center consolidation

Quick disclaimer

I’ll make the fairly obvious point that consolidating down from multiple data center locations isn’t something every company will ever need to go through. Consolidations are undertaken by organizations that already have multiple data center locations, usually as a result of having multiple geographic locations across a region, or the country. If a business has multiple offices throughout the country, for example, and each office has its own server room or data center that backs up data and runs applications, then this would be a prime candidate that could benefit from a data center consolidation.

Why consolidate?

Organizations like this that choose to reduce their data center footprint see several positive benefits, including:

Cost savings from having fewer data center facilities and space to maintain.

Stronger security as a result of their infrastructure becoming more centralized and less geographically spread out.

Easier to stay in compliance with fewer locations that must be audited on a regular basis.

The results speak for themselves

Easily the biggest real-world example of a data center consolidation project can be seen in the US government’s consolidation initiative that began back in 2010. Over the past 5 years, government agencies have reduced their number of data centers by the hundreds, and the process is still ongoing. To date, these agencies have seen an estimated cost savings of $2 billion as a result of this consolidation, with an expected additional savings of over $4 billion over the next 3 years*. They have been able to see significant savings while also leveraging new technologies to operate more efficiently and dynamically than ever before.

These are just a few of the high level reasons why it’s a smart business decision to consolidate and reduce your overall data center footprint when possible. In a future post I’ll look at some ways that you can begin planning for a data center consolidation as well…stay tuned!


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