Start closing or consolidating your own data centers

 In IT Support

The shift from storing company data in data centres to the cloud is becoming increasingly popular. If your company operates in various geographical locations and deals in large volumes of data, it is likely to have stored that data in its own central location. Today, increasing numbers of companies are opting to use the cloud as their primary storage facility. Instead of building their own data centres, they are choosing to use either third-party data centres or agile cloud infrastructure in order to avoid the ownership of IT hardware, the value of which is fast depreciating.


Potential savings

While closing a data centre is a significant task for any business, the longterm cost benefits could easily outweigh this. IT hardware such as data centre servers is depreciating in value, so may not make sense for a business to own as an asset. Cloud computing, on the other hand, converts fixed into variable costs, as businesses use these storage services on a pay as you go arrangement.


Consolidate to update

Some larger companies run multiple data centres, which could cost upwards of $25 million per year to run. In addition to this, updating all of these centres to be compatible with the latest cloud technology can be both costly and complex. The consolidation of data centres enables businesses to conduct an assessment of their assets and to establish things that are working well versus things that are not.


Eliminate the outdated

Consolidation or closure of a company’s data centres is a long-term strategy that should include getting rid of outdated technology and systems. Consolidation goals should also include getting the most out of company servers and storage through virtualization and resources such as the cloud.


First steps

When consolidating or closing centres, you should consider the total cost of your assets and their operating costs – such as staffing costs, software and hardware, space and power.

You should then be clear on the reason for consolidation. Cost reduction, improved performance, data security and the freeing up of cash are all common reasons, but which one you choose could alter the actions that you take.

Finally, understand the end result and look beyond your plan. Think about how your company will deal with its future needs five years down the line with your new data centre or cloud storage solution in place.

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