Data centers turn to outsourcing to meet capacity needs
IDG News Service - More large companies are turning to collocation providers to relieve capacity constraints in their data centers, as a way to avoid the high cost of building their own new brick-and-mortar facilities, two studies suggest.
The Uptime Institute, in its first annual data center survey, reported Tuesday that more than a third of the large companies it surveyed -- 36 percent -- expect to run out of capacity in at least one of their data centers over the next 18 months.
Server consolidation and upgrading of power and cooling equipment are the primary ways the companies said they would boost their capacity, the survey showed. But a significant portion -- 29 percent -- said they plan to lease collocation space, while 20 percent will move workloads to the cloud.
That's notable because large companies traditionally have kept their IT operations in-house, said Matt Stansberry, a research analyst with the Uptime Institute. "This is a trend we've been seeing," toward more companies managing IT operations that are outside their own data centers, he said.
A separate study commissioned by Digital Realty Trust, which builds and operates data centers for third parties, showed a similar trend. Sixty percent of the respondents who planned to expand their data center capacity in 2011 said they would lease space from a third party rather than build their own data center. That was an increase of 7 percent over last year, which follows an upward trend over the past few years.
"Increasingly, enterprises appear to be favoring the lease model, as fewer companies are choosing to go it alone on these capital-intensive projects," Michael Foust, Digital Realty's CEO, said in a statement.
The Uptime survey quizzed 525 large data-center operators, mostly in North America, in March and April. They included banks, insurance companies, collocation providers and government agencies -- what the Uptime Institute called "typically conservative organizations."
Digital Realty's study involved 300 IT executives directly involved in data center decision-making at large corporations in North America.
The fact that so many data centers are running out of power, cooling or floor space isn't a surprise. Many companies put data center projects on hold during the recession and are just now starting to ramp up spending.
"Companies stretched server life cycles an extra 12-24 months, sat on their wallets and rode out the crisis. Now, a lot of shops need to do major infrastructure upgrades," Stansberry said.
A new data center can cost hundreds of millions of dollars and take a year-and-a-half to build. They are also expensive to operate, mostly because of the power needed to run the IT gear and cooling equipment. That may explain why even large, conservative companies are willing to move IT workloads outside their own data centers.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- HP HAVEn: See the big picture in Big Data HP HAVEn is the industry's first comprehensive, scalable, open, and secure platform for Big Data. Enterprises are drowning in a sea of data...
- Piecing Together the Business Intelligence Puzzle Business intelligence (BI) technology collects and analyzes company data, delivering relevant information to corporate decision-makers in an effort to produce favorable outcomes.
- Harness IT -- An Introduction to Business Intelligence Solutions Learn the key selection criteria required to provide your organization with the capability to address structured data, unstructured data and mobile demands so...
- Business Intelligence Shows its Smarts Today's Business Intelligence (BI) tools provide a new way to think about data with self-service capabilities and user-friendly analytics that can be used...
- Live Webcast Best Practices for the Hyperconverged Enterprise Network To the Age of Constant Connectivity and Information overload
- Live Webcast On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Live Webcast Endpoint Backup & Restore: Protect Everyone, Everywhere Arek Sokol from the bleeding-edge IT team at Genentech/Roche explains how he leverages cross-platform enterprise endpoint backup in the public cloud as part...
- Cloud Knowledge Vault Learn how your organization can benefit from the scalability, flexibility, and performance that the cloud offers through the short videos and other resources...
- Testimonial: Cystic Fibrosis Trust Peter Hawkins, the Head of IT for Cystic Fibrosis Trust, discusses the role CommVault's Simpana software platform plays in improving the company's information... All Data Center White Papers | Webcasts