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Build, Buy or Lease? Making a Data Center Decision...

By: DuPont Fabros Technology | August 30, 2017

In our last post on From the Racks, we discussed a recently released white paper from DFT Data Centers that provides in-depth analysis of the considerations companies should keep in mind when making a decision to build, buy or lease off-site data center space.

Off-site data centers can offer hyperscale service providers and enterprises the ability to house, power and cool the ever-expanding IT infrastructures necessary for their customer offerings and business-critical applications. However, these companies have three choices for how to acquire this off-site data center space – they can build it themselves, buy it already built, or lease it from a multi-tenant data center provider.

build-or-buy-ad-2.pngDetermining which of these three routes is the best one for an enterprise can be a choice that keeps CIOs and other data center decision makers up at night. And there’s simply no one right answer for organization.

DFT’s white paper (available for free download HERE) provides 11 criteria to consider for this decision. We took a look at two of those criteria in our last post. Here is a detailed look at two more:

Redundancy and Availability
When it comes to data centers, availability is essential. Should mission-critical or customer-facing applications go down, it could create significant problems for an organization.

Leased data centers offer Service Level Agreements (SLAs) to ensure that their operations provide reliable redundancy and availability to avoid business downtime. Executives who opt to lease their data centers can rest assured that the facility they are housing their IT assets in is well-equipped to provide contingencies in the event of a system error.

Enterprises that need greater redundancy and business continuity may prefer a highly redundant facility. Ultimately, the best way for these enterprises to ensure constant availability may be to build or purchase their own data centers, which will allow complete control over solutions and services.

One of the major concerns of most enterprise IT departments is scalability. They need to ensure that any decision they make today, any facility they implement today, or any solution they purchase today will work in the future, and can scale up or down to meet their needs at any particular time. This is one of the reasons why cloud computing is in high demand – its ability to scale computing and other resources up or down based on need.

This same demand for scalability and flexibility is making its way into the data center, and many enterprise IT departments are looking for data centers that enable them to easily expand and scale outside of their abilities to do so on their own. This is why many executives at cloud providers are leasing data centers as much – if not more – than they are building or buying them. These companies are moving so quickly they simply do not have the time to spend building or even attempting to purchase space. For them, “just-in-time” leasing is a better option.

But not all companies need this kind of instant scalability. Executives at companies with a more stabilized  or predictable growth trajectory may find building or buying to be more ideal if the need for scalability is outweighed by the desire for complete control.

To learn more about whether your company should build, buy or lease its next data center, download the white paper with all 11 of these considerations by clicking HERE.

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