Building Versus Leasing

– Ernest Sampera, Chief Marketing Officer at vXchnge, says:

Organizations of all types are demanding that IT keeps systems up-to-date. This requires not only picking the right technologies, but selecting the right data center path for growth as well.

When your company faces growing pains, it can reflect on your data center. Expansion requires not only more physical space, but also additional power and cooling. When this time comes, you’ll probably be wondering whether you should build a new data center or lease space (colocation) in an existing one.

Building your own data center

Building your own data center allows you to control access to the premises, space, power, and temperature. It can allow you to leverage existing space in the building you already own or construct a new building.

However, building your own data center has certain drawbacks:

  • The initial planning and design can cost from 20 – 25% of the initial construction cost.
  • If you are building out an existing property, the estimated can be around $200 per square foot.
  • Building permits – when combined with local taxes – can average $70 per square foot.
  • In order to make sure you have enough room for growth, you’re probably going to need to increase the available power to the area so that high-density virtualization servers become an option.
  • Fire suppression systems will also need to be added, like FM-200 or an inert gas blend.
  • You will probably need to have fiber run on site, which can cost over $10,000 per mile to get to your location, if the line doesn’t already exist.

These costs don’t include additional factors like data center staffing, infrastructure maintenance, equipment, around-the-clock monitoring, and additional cooling that may be required.

Colocation (leasing space in a data center)

As you can see, the additional expense of building your own data center can be substantial. Leasing space in the data center (a.k.a. colocation), has some advantages:

  • Substantially less upfront cost
  • Lower total cost of ownership
  • Carrier-neutral connectivity
  • It’s an on-going operational expense instead of a capital expense
  • The expense is more predictable
  • Remote Hands provides data center certified professionals, so you don’t have to use your own IT staff in order to guarantee 24-hour availability.
  • Power and cooling that can handle high-density virtualization

Colocation also adds its own type flexibility. You only have to purchase the amount of space you’re going to use. As your needs increase, you can purchase additional space and only have to pay for it at that time. Assuming you pick the right data center, high-density virtualization – with its additional power and cooling requirements – also becomes a possibility.

For many companies, colocation is a good option. With its lower upfront cost, 24-hour experienced technicians, power, and cooling to support high-density virtualization; it offers the flexibility many companies need for growth.