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Firms to Outsource rather than Establish Data Center

by: Karen Cayamanda

Wednesday, March 24, 2010 | Outsourcing News |

Expert predicts that companies will outsource IT services rather than set up a full data center, considering that large-scale capital will be required for a new data center compared to funds for operational expenses should they opt to outsource.

Setting up a data center is expensive

Two years ago, firms were open to the idea of setting up their own data centers, but according to Matt Munson, group technical director for IT services provider BlueSquare Data, an increasing number of companies choose to just pay for the operational costs. “So, certainly from what we can see for the next two years, it's going to be people outsourcing. It's massively expensive to set up a data center,” Munson said.

Munson added that data centers nowadays use different technologies such as cloud computing and blade servers, unlike before when companies used numerous rack servers.




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