Enterprise CIOs are facing a paradoxical operating environment. On one hand, they are being told to cut budgets or at least keep them constant. On the other, they are facing demands to improve operational efficiency, IT capacity and flexibility. According to a recent report from Data Center Knowledge, more companies are turning to a colocation provider or similar third-party data center service vendor in an effort to meet corporate demands while cutting costs.
While CIOs are being told to reduce expenses, they are also asked to make legacy applications work with contemporary architectures and replace completely outmoded systems, the report said. They also have to build high-performance infrastructure, secure systems, establish virtual architectures and ensure that the diverse IT solutions in place are tied to business requirements. Furthermore, CIOs also have to develop long-term cloud strategies. All of these things have to be accomplished on a limited budget, while IT still has to maintain existing IT systems.
With such an overwhelming workload impacting IT, there is a growing need to work with third-party data center service providers to alleviate the cost and management burden. The report said this trend toward using third-party IT services, particularly colocation and managed hosting, is becoming more important than big data, consumerization and other highly hyped IT movements. Third-party data center services have become so important largely because they serve as the key enabler that make other emerging technologies more attainable for businesses.
The news source explained that there are three key components to the data center – power, cooling and space. These interrelated resources are critical to the successful operation of any data center, and have become much more complex and challenging to manage. Data centers that are unable to respond to emerging trends and support high-density functionality can limit a company's operations, but building and operating such a facility can be extremely difficult, making third-party services a popular option.
Colocation facilities are often built to support high-density computing. They are generally equipped to support high power capabilities, equipped with the network systems to handle rising bandwidth requirements and feature the redundant systems needed for reliability. As a result, CIOs can turn to colocation services to enable superior data center operations without having to spend so heavily to establish such systems within a corporate data center.