7 Reasons to outsource a Data Center – Explanation Guide

7 Reasons to outsource a Data Center, Not so long ago, companies and businesses around the world had to maintain physical servers onsite. However, this is no longer the case.

As we move forward in the digital age, businesses aim to shift away from this traditional concept to one of virtualization where they do not have to store their data and applications onsite.

Maintaining physical servers on-premises is not an easy task, especially for small and medium sized businesses. It is important to note that every business, every company and every organization needs to maintain a data center or have access to someone else’s, regardless of how small or large the business or the organization is.

In today’s world, having access to someone else’s data center seems like the better option. What this means is that you can rent space and hand over the work to a managed service provider or pay for cloud-based services.

For instance, a banking data center has decided to move to a cloud-based architecture. The benefits of moving from on premise to cloud are worth noting. Cloud-based services means your business will have access to the software on the internet as a service. Moreover, the cloud refers to off-premises computing which makes it a safe way of sharing and storing data. 

While it is worth discussing why enterprises are moving to the cloud, it is important to remember that our topic for today is what are some important reasons to outsource a data center.

Outsource a Data Center

Data center outsourcing has gained traction throughout the world and recent research shows that many companies see it as a viable alternative to building and managing an in-house data center facility.

Many huge companies with thousands of employees have already either partially or fully outsourced their data center. Moreover, many are also planning to do so within the next 12 months. The most important being that you might not have or can’t afford to deliver the services or skills required.

However, another reason could be that your internal IT operations are costing you a little too much as they are not cost competitive. The answer to why companies decide to outsource their data centers is not that simple. We will now look at the seven key factors driving data center outsourcing.


Businesses are almost always looking to reduce all the costs associated with IT operations. Managing an in-house data center is bad news as it can add huge expenses.

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However, to make use of modern, energy and cost-efficient data center infrastructure could change that. It is an ideal solution for those who are looking to reduce or control costs and after all, using professionally managed data center facilities brings with it a lot of other advantages.

Risk Management

Think about it, how easily can you access your in-house data center? On the other hand, outsourcing a data center to a professional managed services provider will add extra security layers. They will be using the latest technology and advanced methods of keeping your data secure.

Security measures can include video surveillance, mantraps, biometric scanning, alarm systems and personnel onsite 24/7. Do you still think your business or organization is better equipped to keep all your data stored safely?

Cloud Connectivity

It is no secret that in recent years various cloud services have been growing in popularity. These include public cloud providers such as Google Cloud Platform, IBM Cloud and Microsoft Azure which continue to grow rapidly. However, this does not explain why companies are moving to the cloud.

Public cloud services are simply too good to ignore for enterprises with dynamic IT operations as they can provide ultimate flexibility. Cloud-enabled connectivity providers offer high levels of security, performance, scalability, speed and overall performance. Not to forget that cloud services cost much less than in-house data centers.


Different organizations and businesses need to comply with a number of different regulations set by either the government or the market. These can include PCI-DSS, ISAE and other such regulations.

Needless to say, most companies do not have well-educated staff with the required skills and compliance expertise. Therefore, maintaining compliance requirements can be very challenging and it can also be expensive and time consuming.

However, most data center providers around the world hold certifications that confirm their ability to comply with all such regulations that are associated with storing data.

Higher Flexibility and Capacity

Organizations that have their own in-house data center run the risk of not being able to respond to different situations with all of their capacity and flexibility, which could restrict and even damage the goals of the business.

However, if an organization does decide to outsource a data center, they do now have to worry about ample space and sufficient workforce that will help them grow and achieve their set targets. 7 Reasons to outsource a Data Center Moreover, there is no need to worry about data center operations as most data center providers will take care of all the processes involved themselves.


In today’s world, data is generated at a tremendous pace and organizations, or businesses create data worth thousands of MBs every day. While this is amazing, it also means that these organizations and businesses’ data needs are going to continue to grow rapidly.

Scalability is almost never a problem and those who turn to professional data center providers can increase their needs incrementally as they go.

Increased Productivity

As already mentioned above, professional data center providers are equipped with all kinds of resources and facilities. As an outage could cause huge losses or significant damage to an organization, it is important to have a backup system to keep things running even if there is an outage.

Most data center providers offer high levels of availability and so the organization or the businesses that outsource their data center does not have to worry about technical aspects of data center and IT infrastructure.

By outsourcing their data centers, organizations can better focus on accomplishing their goals. Organizations can also free up internal resources this way and achieve an increased level of productivity.


Most people see cost reduction as the main motivation for outsourcing in-house data centers. However, from what we have discussed we can see that there’s much more to it. 7 Reasons to outsource a Data Center To outsource a data center offers several benefits, and it is expected that in the coming years professional data center providers are going to be busy.

According to multiple reports and studies, data center outsourcing is not only the most effective way of managing core IT infrastructure, but it also allows businesses and organizations to achieve their goals. When all the benefits are considered, it’s not easy to find enough reasons to keep all data center operations in-house.

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