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March 2013, Volume 2, Number 3

Are there too many options for outsourcing data center operations?

Outsourcing data center operations has become mainstream, but that doesn’t mean it's simple. As a former data center owner and provider, I appreciate the value of outsourced data centers. Done right, outsourcing simplifies a very complex part of business, saves money and provides greater flexibility and reliability. But it does create a new set of challenges that need to be understood and managed. Take expansion. Last summer, one of our customers, a law firm, was presented with the right of first refusal for an expansion less than 60 days after signing a lease. The firm hadn't even started moving, and it was already being asked to decide whether to expand its footprint. Business model and market inconsistencies The seeds of today’s push toward data center outsourcing were planted nearly a decade ago, when many of today’s dominant data center providers established models that provided economies of scale for their customers. Ever-increasing equipment densities, increased use of server virtualization and the rising price of energy ...

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