Companies looking to make their IT infrastructure more efficient often outsource their data centre. In a world where data is the new gold, many business owners are wondering how best to manage their IT resources.

At first glance, outsourcing your data centre has many benefits. Companies can concentrate on their core business while external service providers (managed services) take care of the IT infrastructure. However, this decision also comes with risks – particularly in terms of data security, control and flexibility.

Therefore, when does it make sense to think about outsourcing your data centre and, with it, your IT systems? Or, when does it make more sense to abandon the idea altogether because the risks become too high? Read on as Cadolto Datacenter takes you through a few pointers on when it’s a good idea to outsource your data centre or whether you will better off forgetting the idea altogether. We will also suggest a few other alternatives to outsourcing your data centre, because managing your own oversized data centre is also not imperative.

Definition: outsourcing

Companies use IT outsourcing to subcontract certain business processes or services to external service providers. By using an external data centre, the hope is to reduce costs, boost efficiency and often also gain access to specialist expertise.

Deciding to outsource a data centre is an important step for any company. First, you must conduct a comprehensive analysis of your IT requirements and goals, so that you are able to specifically understand your needs. This should include careful analysis of your current IT infrastructure, planned growth, and your company’s specific data processing and storage requirements.

To give you an insight into the aspects that are particularly important when assessing your needs, we have put together a list of the key points for evaluating your IT requirements:

Inventory and assessment of the current IT infrastructure: you need to take stock of and evaluate your current IT infrastructure to accurately understand the performance of the existing systems. Only those who understand their system in detail can recognise performance deficits early enough to react promptly.

Forecast future business requirements: companies must be able to at least roughly calculate their future needs. This is the only way to find a solution that will meet your requirements in the near future.

Identify specific requirements: security standards, compliance requirements and the need for high system availability and reliability are examples of specific requirements.

Note:

A successful outsourcing decision requires a thorough understanding of your IT needs and business goals. To find a solution that boosts efficiency and promotes growth, thorough analysis and future-oriented planning are essential.

A crucial step when deciding whether to outsource your data centre is to conduct a cost-benefit analysis. By balancing the initial investment and ongoing operating costs against the long-term savings, this analysis helps companies understand and weigh up the financial implications.

The components of a cost-benefit analysis are as follows:

Comparison of capital expenditure (CAPEX) and operating expenditure (OPEX): data centre outsourcing can help convert large upfront infrastructure investments into predictable monthly operating costs.

Consideration of total cost of ownership (TCO): this includes the direct costs for hardware and software and the indirect costs such as maintenance, energy consumption and personnel.

Analysis of possible cost savings: improving efficiency, reducing energy consumption and avoiding overcapacity can generate significant savings.

Definition: total cost of ownership (TCO)

TCO refers to all costs associated with the purchase, implementation and ongoing operation of an IT investment over its entire lifespan.

For smaller companies in particular, it can be wise to consider outsourcing computing capacity due to the cost savings that this entails. However, larger companies should take time to deliberate on this as the risks of outsourcing a data centre can be costly. Failures can even result in serious economic damage. Costs can soon rise even further if data security breaches occur and compensation is claimed.

Note:

A comprehensive cost-benefit analysis is critical in order to evaluate the financial feasibility and strategic benefits of outsourcing a data centre. Data centre outsourcing can reduce overall costs, but it also comes with risks that can be expensive.

Security and compliance are very important when deciding whether or not to outsource a data centre. Compliance with relevant regulations and standards and ensuring the security of company data are important issues that must be carefully evaluated.

The following key factors are pivotal and should not be neglected when deciding whether to outsource a data centre:

Data security: protect confidential and sensitive company data from unauthorised access, data loss and cyberattacks.

Physical security: the physical security of the data centre must be guaranteed through access controls, surveillance and fire protection.

Compliance: compliance with industry and legal regulations such as GDPR and ISO certifications.

Definition: General Data Protection Regulation (GDPR)

GDPR is a European Union regulation that governs the privacy and data protection of all citizens within the European Economic Area. It also applies to the export of personal information outside the EU and EEA.

Note:

Security and compliance are non-negotiable when it comes to outsourcing data centres. A careful assessment of a provider’s security and compliance capabilities is critical to minimising the risk of data breaches and to meeting regulatory requirements.

Small and medium-sized companies often do not operate their own data centres, whereas large companies do. But is there perhaps an opportunity for smaller companies to benefit from the security of having their own data centre? And do large companies always have to build a new, oversized data centre to have capacity for future projects?

With its high-tech modular constructions, Cadolto Datacenter may offer exactly the right alternative to outsourcing your data centre or operating your own. Cadolto Datacenter’s modular, expandable solutions enable rapid adaptation to changing business needs.

You too can benefit from the scalability and high flexibility of the modular design.

High-tech modules: Cadolto Datacenter provides modular data centre solutions that enable quick, easy expansion without affecting ongoing operations.

Direct expansion: being able to quickly add or reduce resources is a key benefit for companies that have to respond to market changes. Cadolto Datacenter modules can be expanded within a very short time if required. The internally operated data centre always meets the current capacity requirements.

Adaptability: the ability to adapt specific configurations and customisations to individual needs is an important factor. This is why Cadolto Datacenter offers a range of products that can be optimally tailored to current needs. Companies then no longer need to outsource their data centres just because they urgently need extra capacity.

As the technology landscape is constantly changing, you must choose an outsourcing partner that can not only meet current needs, but can also adapt to future developments and requirements. Cadolto Datacenter offers exactly this flexibility and future security with its modular solutions. There is no need to plan the outsourcing of your data centre due to scalability, as you can easily expand yours with modules from Cadolto Datacenter.

Strategies for secure future data centre solutions:

Technological flexibility: the ability to adopt new standards and technologies as they become available.

Modular expansion: the ability to easily expand physical capacity without impacting existing systems.

Adaptation to business needs: solutions that adapt to changing business models and strategies.