Capacity Crunch Leads to More Outsourcing

More large companies are turning to collocation providers to relieve capacity constraints in their data centers and avoid the high cost of building their own brick-and-mortar facilities, according to two studies released this month.

The Uptime Institute reported that 36% of the 525 large companies it surveyed expect to run out of capacity in at least one of their data centers over the next 18 months.

Consolidating servers and upgrading power and cooling equipment are the primary ways the companies surveyed said they would boost their capacity. But 29% said they plan to lease collocation space, while 20% will move workloads to the cloud.

A separate study commissioned by Digital Realty Trust, which builds and operates data centers, showed a similar shift toward data center managers leasing space from third parties rather than building their own data centers. That study surveyed 300 IT executives.

"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.

This version of this story was originally published in Computerworld's print edition. It was adapted from an article that appeared earlier on

Copyright © 2011 IDG Communications, Inc.

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