These are questions I am often asked, I came across this article the other day on the subject and wanted to share it with you, Posted originally by Nicholas Greene a year or so ago but still very relivent today……..
For one reason or another, your enterprise organization's got some big computing needs right over the horizon. Maybe you're setting up a new consumer payment or accounts management platform. Maybe you've just developed the next best online game, and you need servers to host it. Maybe you just need some additional storage. Whatever the reason, you're gonna need a Data Center. One question remains, though- should you outsource, or build?
Constructing a Data Center's no mean task, as you well know- it's a positively herculean undertaking which brings with it overwhelming costs and an exhaustive time commitment just to construct it- never mind maintaining it after the fact. If you're going to build a Data Facility, you'd better make damned sure your business can handle it. If you don't, you'll flounder- it's simply reality.
There are a lot of things you have to consider- cost and budget, employees, time constraints…you know the drill. Today, we're going to take a closer look at the first entry on the list-the reason for setting up a facility- and use it as a springboard in determining when you should outsource, and when the management of a facility should be placed solely in your organization's hands.
Ultimately, you have three choices- it comes down to whether or not you want to outsource to a multi-purpose data vendor, construct your own purpose-built facility, or hire a contractor to custom-tailor a facility for you. Before we even get started, I'm going to say right out the door that most businesses are better off going with the first or third option.
To determine what choice is right for you, there are a few things you should consider. What does your business do? What shall you be using the facility for, and how intensive will your needs be? How important are the tasks you require the facility for? Are they key components of your business strategy, or of one leg of your corporation?
What your business does can play a considerable role in determining whether or not you'll run your own servers. Is your organization solely based in the technology sector, or is your primary area of expertise in finance. Are you a hardware or software vendor, or do you primarily sell consumer products? How large is your IT department? How well-funded are they? All of these questions should be taken into account, as they can very well help determine right out the door if your business is even capable of managing its own facility without some significant restructuring, let alone building one.
Of course, that's only the first thing you need to consider- what your organization does by no means restricts it from constructing its own centers- Facebook's a prime example of this. Of course, in their case, they have their own reasons for building their own servers- they are, after all, the world's largest and best-known social network.
As I've already stated, what you need the facility for also plays a very important role. If you are, for example, a cloud-based SAAS vendor, it should go entirely without saying that you should be building and managing your own facility. As a general rule, if you expect to turn a significant profit from your facility, or the need met by the facility comprises a key aspect of your business model, you should look at running your own- or, at the very least, get yourself a custom-built data center.
Bandwidth goes hand in hand with purpose. How many gigabytes of data is your product or service going to use? How will the costs of development and management stack up against the fees you'd be paying if you outsourced? Will you turn enough of a profit to merit setting up your own facility?
Do you foresee yourself needing to expand your facility in the future? How will you do it? Scalability's an important concern, and if your business can't afford to expand- or virtualize- outsourcing might be the answer. Size matters, folks, and the smaller your business, the more likely you are to need to contract out, rather than run your own center.
Finally, there's your staff. Is it more economical to train and hire a whole team of new employees, or simply contract out to an organization to manage things for you?
Every business is different, and not all organizations are built equal. What I've listed here, all of the information; it's little more than a guideline. Ultimately, the choice of whether or not to outsource rests entirely with you.