What You Need To Know Before Outsourcing Your Data Center Management

What You Need To Know Before Outsourcing Your Data Center Management

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Data center management is a complex and critical aspect of many businesses, and it is essential for organizations to have a skilled team of professionals to ensure their data is secure and efficiently managed. For some companies, outsourcing their data center management is the best option, as it can provide a variety of cost savings and other benefits. However, before outsourcing data center management, it is crucial to understand the fundamentals, such as the various types of services available and the associated costs. This article provides an overview of what you need to know before outsourcing your data center management, including the services offered, the costs involved, and the associated risks. With this information, you can make an informed decision that best suits your organization's needs.

Types of Data Center Management Services

There are two types of outsourced data center management services: managed services and colocation services. Managed services are typically offered by a managed service provider (MSP), whereas colocation services are typically offered by a colocation provider (CP). - Managed services - Managed services include everything in the data center, such as the power, cooling, and monitoring and management of IT systems. Depending on the level of service provided, managed service providers can also provide onsite parts, such as generators, air conditioners, UPS systems, and onsite IT staff. - Colocation services - Colocation services only involve the building, physical space, and the IT systems that are already inside the data center. CPs are responsible for managing the space, such as providing 24/7/365 building maintenance, fire and safety systems, and power systems. - Hybrid Services - Many data center providers offer a hybrid service, which is a combination of managed and colocation services.

Costs Associated with Outsourced Data Center Management

The associated costs can vary depending on which type of data center management service is used. The costs associated with outsourcing managed services are usually higher than colocation services, as managed services include more features and services. However, managed services may be a better option for some organizations, as they offer a higher level of service and support. - Managed services - Managed service providers will charge a fee based on the total number of racks in the data center and monthly or annual charges. Other costs to consider are the network access and interconnectivity costs and racking and stacking charges. - Colocation services - The CP will charge a fee based on the size of the data center space needed. In addition to that, they may charge a setup fee and/or an installation fee.

Risks to Consider Before Outsourcing

Before outsourcing data center management, it’s important to consider the following risks associated with this decision. - Loss of control - Organizations that outsource their data center management services are giving up some control. When outsourcing, you may not get the level of service you need, or the provider may not be able to meet your specific needs. - Change of priorities - An organization’s needs may change over time, and these needs must be communicated to the provider. Without this communication, the service may be inconsistent, which can negatively impact the overall efficiency of the data center. - Hostile takeover - If the data center provider is acquired or bought out by another company, it may change its priorities, which may not align with the organization’s needs. - Technology change - The organization’s IT needs may change, which could result in the provider needing to make changes to the physical infrastructure. If the provider cannot make these changes, the organization may have to terminate their contract with the provider.

Benefits of Outsourcing Data Center Management

There are various benefits associated with outsourcing data center management, including reduced costs, improved efficiency and scalability, and increased flexibility. Outsourcing data center management can provide many cost savings, such as reduced facility and hardware costs, a reduction in labor costs, and lower energy costs. Additionally, outsourcing data center management can improve efficiency and scalability, allowing the organization to focus on its core business operations, and a provider can handle the day-to-day operations in the data center. Finally, outsourcing data center management can provide increased flexibility to adjust to changing IT needs and requirements.


Companies often outsource their data center management to reduce costs and improve efficiency. Before outsourcing this function, it is vital to understand the different types of services available and the associated costs. With this information, you can make an informed decision as to which option best suits your organization’s needs.

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