Even with budget cuts, enterprises still have new Data Centres to roll out in the new year. Unfortunately for CIOs, these are still hugely expensive affairs from a CAPEX perspective, as the cost of the infrastructure is largely unchanged.

In this article we looked at some key questions like:

Is there a more efficient way of implementing them in the year 2010? Does it still require huge amounts of manpower to complete a project of this size?

1. Companies putting in place a Data Centre strategy still require a high level of capital assets due to the cost of infrastructure. Are there more efficient ways of implementing them?

Putting in place a data centre strategy can be done with the option to build or lease – often the debate CIOs and decision makers have with each other. In fact, both routes you take can offer cost efficient solutions but it will all depend on the size and needs of your business, the financial model your business is based, along with a number of various factors.

Broadly speaking small to medium sized companies would benefit more from seeking a professional managed IT service provider who can offer them data centre space to lease. Leasing your data centre to a specialist team dedicated to managing and running them, means they carry the risk and are able to offer the support companies need to focus on core activities.

Should companies take the build option, there are two technological approaches to adopt that can also enable companies to keep their capital expenditure at a minimumthe decentralized rack based solution, and the centralized modular solution. Both options follow a Phased Approach where data centres are built in phases. Rather than deploying the whole range of equipment, the power and cooling infrastructure is implemented as and when it is needed based on the growth and demand of the business. The Decentralized rack route enables a more independent set up of power and cooling through a rack based supply. Whereas the Centralized Modular route adds modules to a centralized power and cooling supply for the entire data centre rather than for individual racks. Both methods can keep the costs of IT infrastructure to a minimum.

2. What sort of manpower is needed to rollout a data centre?

It all depends. Choosing to work with an IT managed service provider allows the data centre infrastructure to be taken care of by a third party specialist team dedicated to the daily operational tasks of IT services. In the meantime, the IT manager can afford to focus on its core business activities. Should a company choose to build a data centre however, there are essentially two approaches to consider: Turnkey Approach (design and build) and Design, Tender and Build Approach.

With both approaches, the manpower is minimal although experts say that the Design, Tender and Build Approach is recommended for larger projects. This is because it offers better cost, quality and time control. More importantly, larger projects need to have the project overlooked by independent partners who will be able to offer advice and work without any conflict of interest between the contractor and the supervisor.

The Turnkey Approach to build Data Centres, however, can serve advantages to small data centre projects with a rack space of up to ten racks. In this range, standardized solutions are available in the market which not only reduces the cost but the time to market.

Choosing to lease Data Centres as another option eradicates the cost risks altogether. While a Data Centre Service provider already has an IT infrastructure in place, all the customers need to do is to place their racks and connect to the power and essentially, they are ready to plug and play. This is the fastest way to get your business up and running with no capital expenditure to worry about.

3. What is the role of the managed service provider (vendor) in deploying technologies for the customer?

Should a company opt to lease data centres with a managed IT service provider, the entire technical operations of a company’s IT infrastructure is taken care of by the service provider. All a customer needs to do is to select the best service provider for their business offering the best price and Service Level Agreements which meets the uptime and availability requirements of the customer’s IT infrastructure.

Alternatively, if building a data centre is more viable to a business, data centre consultants will also be able to guide a company from aligning their IT with their business needs down to testing the infrastructure after implementation and ensuring their data centre meets industry standards.

4. What are the benefits in the long run of a company depending on a managed service provider/vendor to service its data centres?

• IT-business alignment

It allows companies to realign their IT activities into becoming a business enabler rather than being a mere back-office support function. As a result, leasing data centres from a managed IT service provider allows for tailored solutions to be developed enabling customers to leverage their IT environment for business benefits and reduced risks.

• Consolidation and centralization

Another benefit for companies choosing to lease data centres from managed service providers is that they no long have to deal with the cumbersome task of replacing and renewing new technologies so frequently. While most organizations are under budget constraints these days, they are now looking to consolidate and centralize their IT infrastructure to achieve economies of scale. In this way, investing in their IT infrastructure such as hardware, storage, software licenses, backup, security, network infrastructure, maintenance and support can be reduced by leasing the same to a managed IT services provider.

• Flexible business model (CAPEX to OPEX)

A major driver for businesses to lease data centres with managed services is the need to find a business model that works in a climate that is unpredictable. Companies today are looking to have their data centres managed by a third party service provider which enables them to adapt to a volatile economic environment and capitalize on skilled resources and standardized processes for the efficient delivery of IT operations. In addition, more and more organizations are moving away from investing in upfront Capital Expenditure (CAPEX) to an Operational Expenditure (OPEX) model and are looking for performance and SLA based contracts to guarantee the level of services being delivered. These allow companies to ‘pay-as-you-go’ and reduce overall risks associated with their business operations.

• Core-business focus

Organizations also consider the need to lease data centres from managed service provider because they need to focus on its core-business activities. A survey conducted in the region recently revealed that given the increasing complexity of networks, many organizations were open to the idea of having their IT infrastructure (including data centres) managed by an external Service Provider. Managed Services Providers have the inherent skilled manpower and process maturity for IT support and service delivery as an experienced team of qualified resources is the key in providing reliable service levels and for optimizing the use of latest technologies available in the market.

• Building data centre benefits

Companies who decide to build their own data centres can only really enjoy its benefits if guided by an independent consultant. A consultant will be able to guide a customer and provide pricing options based on the best type of technology in the market along with the most efficient process to take. More importantly, he will be able to provide independent advice that is not in conflict of interest with supervisors and contractors.