As businesses become more dependent on technology, their demands have increased and diversified to include higher quality of service, enhanced security and support for internal control. This has created a growing demand for data centre services and the capabilities of a data centre have never been more important to the successful delivery of mission critical objectives.
The reduction of IT costs has become a key challenge for businesses and they have higher expectations for data centre services as a means of reducing operational costs, which account for 70% of their IT-related budgets, and there are the conflicting demands of better service levels and lower-cost services.
The uptime institute recently published their annual data centre industry survey and among the important points was that a large proportion of enterprise operators are unwilling or unable to report on data centre cost and performance metrics.
In contrast, 3rd party operators are very able at tracking and reporting this information, which makes them appear more capable than their in-house counterparts.
This gap in reporting means that enterprise operators are unable to show the value they add to the business and are not able to show the return on their investment. This appears to be driving increases in data centre budgets for 3rd party services that indicates a possible shift in spending away from enterprise owned data centres.
Companies whose IT operations are a large part of their cost structure or have the scale to do it have radically outpaced the rest of the industry in adopting the leading edge technology and best practices. These advanced technologies and operational changes require an increased level of operational sophistication and come with a significant cost either in capital or in-house expertise.
Organisations need to have the expertise and a significant return on the investment in order to use these technologies effectively which leaves out the bulk of smaller enterprise operators.
The burden of articulating the value has shifted from the third party provider to the internal enterprise staff. The lack of reporting on cost and performance means that enterprise operators are unable to make informed choices when it comes to the decision to upgrade, build or outsource. This can result in a decision to outsource the data centre for the wrong reasons which can be an expensive mistake in the longer term.
The big challenge for enterprise operators is to demonstrate that in-house services are the best choice for the company. It is up to the enterprise operators to be the educated advocates for the services they are providing.
The reduction of IT costs has become a key challenge for businesses and they have higher expectations for data centre services as a means of reducing operational costs, which account for 70% of their IT-related budgets, and there are the conflicting demands of better service levels and lower-cost services.
The uptime institute recently published their annual data centre industry survey and among the important points was that a large proportion of enterprise operators are unwilling or unable to report on data centre cost and performance metrics.
In contrast, 3rd party operators are very able at tracking and reporting this information, which makes them appear more capable than their in-house counterparts.
This gap in reporting means that enterprise operators are unable to show the value they add to the business and are not able to show the return on their investment. This appears to be driving increases in data centre budgets for 3rd party services that indicates a possible shift in spending away from enterprise owned data centres.
Companies whose IT operations are a large part of their cost structure or have the scale to do it have radically outpaced the rest of the industry in adopting the leading edge technology and best practices. These advanced technologies and operational changes require an increased level of operational sophistication and come with a significant cost either in capital or in-house expertise.
Organisations need to have the expertise and a significant return on the investment in order to use these technologies effectively which leaves out the bulk of smaller enterprise operators.
The burden of articulating the value has shifted from the third party provider to the internal enterprise staff. The lack of reporting on cost and performance means that enterprise operators are unable to make informed choices when it comes to the decision to upgrade, build or outsource. This can result in a decision to outsource the data centre for the wrong reasons which can be an expensive mistake in the longer term.
The big challenge for enterprise operators is to demonstrate that in-house services are the best choice for the company. It is up to the enterprise operators to be the educated advocates for the services they are providing.