According to a market research firm, Data Bridge, DCO outsourcing market value will hit around $320 billion by 2028.
This growth is partly because more businesses are using Infrastructure-as-a-Service (IaaS) to handle their data needs.
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So, in this article, we’ll discuss what is data center outsourcing, its benefits, its common tasks, and where to outsource these services.
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Let’s begin!
What is Data Center Outsourcing?
Data Center Outsourcing is hiring a firm to take care of your IT infrastructure and hosting needs instead of doing it in-house. This service usually lasts for several years and involves a third-party data center.
It’s a bit like hiring a virtual assistant call center team of experts to manage all the complex technology that keeps a company’s digital operations running smoothly.
This approach helps save time, reduce costs, and ensure that the company’s IT needs are handled by specialists.
Who is the Largest Outsourced Data Center?
Stealth Agents is a large outsourced data center (DCO) offering a broad range of IT outsourcing offshore virtual assistant services, including data center operations, as part of their extensive service offerings.
They focus on providing scalable and secure IT solutions that are tailored to the specific needs of their clients, ensuring both cost efficiency and access to specialized skills.
If you’re looking for outsourced data center services, Stealth Agents’ virtual assistant ensures the safety of data.
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It might be a valuable partner due to its capability to manage extensive IT functions.
What are common services they’re providing:
– Computing and storage resources
– Hosting essentials like power, cooling, bandwidth, and connectivity
– Systems management
– Server monitoring and app performance
Pros:
– Cost-effective solutions
– Access to specialized expertise
– Scalable services
– Robust security measures
What Does an Outsourced Data Center Do?
1. Colocation Services
Outsourced data centers, through colocation services, provide a special kind of home for your IT equipment.
It comes with everything your tech needs to run smoothly: power to keep it going, cooling to keep it from overheating, and security to keep it safe.
This means you don’t have to worry about finding room for your equipment or dealing with the nitty-gritty details of keeping it running.
2. Managed Services/Data Center as a Service (DCaaS)
When you use an outsourced data center, you’re getting someone to handle all the nitty-gritty details for you.
This includes setting up your hardware and software, keeping everything running smoothly, and jumping in to fix any issues that pop up.
It’s their job to ensure your data is always available, quick to access, and safe from any threats.
They keep the lights on and the bad guys out, so you can focus on your business without sweating the technical stuff.
3. Cloud Services
These are spaces on the internet where businesses can use computing power, store their data, and run their applications.
It’s like renting an apartment online where you can keep all your stuff and use various facilities without actually owning them.
This setup is great because it can grow with your business. You only pay for what you need, when you need it, without having to buy any physical equipment.
4. Disaster Recovery and Business Continuity
When you use an outsourced data center, they have special services designed to protect your important data and applications.
If something goes wrong, like a system failure or a natural disaster, they can quickly get everything back up and running.
5. Security and Compliance
They come packed with all sorts of protection; from guards and gates that keep out unwanted visitors, to fancy digital locks that stop cyber attacks in their tracks.
But it’s not just about keeping bad guys out. These data centers ensure everything they do is by the book.
That means following all the rules and regulations to the letter, so your business stays on the right side of the law.
What are the Benefits of an Outsourced Data Center?
1. Lower Costs
Outsourcing your data center leads to significant cost savings, making it a game-changer for businesses of all sizes.
Instead of spending a fortune on building, maintaining, and updating your data center infrastructure, you pay a manageable fee for top-notch services.
You don’t have to worry about the complexities of running a data center, such as power management, cooling systems, and security measures.
2. Predictable Costs
One of the biggest advantages you’ll notice is predictable costs. It means, you know exactly how much you’re going to spend on managing your data, without any unpleasant surprises.
Instead of facing unexpected bills for equipment repairs, maintenance, or upgrades, you have a clear, fixed fee that covers all these aspects.
You can plan your finances better, investing saved resources into growing your business or improving other areas.
3. Access to Specific IT Skills
These professionals are well-versed in the latest technologies and are ready to handle issues you might not even be aware of.
Instead of worrying about finding and training your specialists, an outsourced facility offers this expertise as part of the package.
This ensures your operations can leverage cutting-edge solutions and best practices, keeping your data secure, and accessible at all times.
4. Economies of Scale
When you share the infrastructure and resources of a specialized data center provider, you benefit from their large-scale operations.
They can offer services at a lower cost per company because they spread the costs of energy, cooling systems, and security measures across all their clients.
This setup allows businesses to access top-tier data center technologies and expertise without the hefty price tag of building and maintaining your facility.
So, ultimately it ensures that your business runs smoothly and efficiently while keeping expenses in check.
What are the Types of Outsourced Data Centers?
1. Onshore
Onshore data centers are those located within the same country as your business.
This setup is fantastic if you want tight control over your data and demand quick, easy access at any time.
Plus, having your data stored domestically means you’re better aligned with local regulations and compliance standards.
2. Offshore
Offshore data centers refer to facilities located in a different country from where the business operations are headquartered.
This option appeals to companies seeking to reduce operational costs by leveraging lower electricity or labor rates in other countries.
It also provides strategic advantages by placing your data closer to international users, reducing latency, and improving service speeds for a global audience.
An essential factor to consider is the regulatory and legal implications of storing data in another country, it can impact your business operations.
3. Nearshore
Nearshore data centers are located in countries or regions near the primary business operations, offering a perfect balance between proximity and cost efficiency.
This closeness means faster data transfer rates and lower latency, leading to improved service quality for users and a smoother operation of services.
The geographic proximity also simplifies collaboration and communication, making it easier to manage and coordinate IT functions.
Outsourced vs. in-house Data Center
Outsourcing to a data center means you’re hiring another company to host your servers, manage storage, and ensure your data’s security.
This path significantly reduces your overhead costs because you won’t need to invest in the physical infrastructure or the team to manage it.
Plus, it offers scalability; as your needs grow, the data center can easily expand its services to accommodate you.
On the other hand, an in-house data center is all about control. You own the servers, you manage the security protocols, and you decide on the technology upgrades.
It requires a substantial initial investment in both hardware and skilled personnel but offers unparalleled customization.
You can tailor every aspect of your data center to meet your exact specifications and maintain direct oversight over all operations.
Ultimately, outsourcing offers cost efficiency and ease of scaling, making it an excellent choice for businesses looking to expand.
An in-house setup, while more resource-intensive, provides control and customization, suiting organizations with specific data management needs.
Takeaways
In conclusion, outsourcing data centers is an effective strategy for businesses seeking to enhance efficiency and scalability.
Outsourcing, trusted by over 100 clients, lets firms focus on core capabilities while using specialized knowledge.
The key difference between using service providers and outsourcing lies in flexibility and customization.
Service providers offer standard services suitable for general needs, while outsourcing offers tailored solutions and a closer partnership, adapting more precisely to a company’s specific goals.
The choice between the two depends on a company’s individual needs and strategic objectives, each offering unique advantages for business growth and adaptability.
