Data and technology are essential – but expensive – components of any modern enterprise.
With the proliferation of data, the complexity of privacy and security regulations, and the ever-growing number of high-profile data breaches making headlines (and giving CIOs nightmares), building a private data center may seem like a logical IT solution for your enterprise.
The advantages of a data center compared to an ad hoc facility are numerous:
- A private, custom-configured environment
- Expanded storage and network capacity
- Controlled climate
- Enhanced physical and data security
The list goes on.
But there are substantial “invisible” costs and tradeoffs involved with building a private data center. And the benefits of building a private facility may be accessible in another, less capital-intensive way.
The Most Important “Invisible” Cost
If you build a private enterprise-level data center, you will, of course, need a carrier.
The carrier won’t absorb the cost of the infrastructure to connect to your facility apropos of nothing; you will need to either cover the build costs of fiber implementation directly or commit to a substantial long-term carrier contract lucrative enough for the carrier to justify the initial outlay.
On top of the direct carrier cost (or the high-priced contract) comes another tradeoff of a private data center: limited selection of technology choices and services.
Different carriers deliver different services and benefits, but unless you are prepared to cover build costs for multiple carriers, your private facility will be limited to the offerings of one or maybe two carriers. This jeopardizes your ability to maintain connectivity and deliver your SLAs in the event your carrier has a problem.
Before your organization commits to building a private data center, consider the costs, tradeoffs and alternatives so you can make an informed, fiscally-responsible choice.