Corporate Finance

Ten reasons to outsource your data center

Why outsource your data center operations? An executive from Colliers International Technology Solutions Group answers the question, David Letterma...
A CFO InterviewSeptember 3, 2013

Why outsource your data center operations? An executive from Colliers International Technology Solutions Group answers the question, David Letterman style. The top 10 list of benefits of outsourcing your data center, according to Tim Huffman: • No. 10: Ecosystem—In a mixed-tenancy data center, a tenant may be able to establish faster connections with other companies in its supply chain. • No. 9: Regulatory compliance/audits—Outsourced data centers make it easier to comply with the latest government requirements, including data protection and retention rules, rather than investing in staff dedicated to those compliance issues. • No. 8: Focus—Outsourcing allows information technology staff to focus on more important goals. • No. 7: Connectivity—Because data center service providers typically allow multiple carriers to offer service into their buildings, that increases choice and leverage for the tenant with its telecommunications. • No. 6: Operational Expense vs. Capital Expense—Outsourcing allows a company to avoid infrastructure operating and capital expenditures. • No. 5: Discounted Power Costs—In a data center hub market, power can cost 40 percent to 60 percent less than the national average. • No. 4: Speed of Delivery—Upgrading or expanding data center inventory is much faster with an outsourced provider. • No. 3: Tax Incentives—Leading data center markets offer tax breaks. • No. 2: Risk Mitigation—Adding distance between company and its data center reduces the possibility that a natural disaster would shut down both. • No. 1: Uptime—Outsourced data center providers are incentivized to minimize downtime. See Huffman’s column here: Huffman’s column

A Better Way to Do Ecommerce

A Better Way to Do Ecommerce

Learn how Precision Medical leveraged OneWorld to cut the cost of billing in half and added $2.5M in annual revenue.