What is Data Center Outsourcing?

19 Jul 2023 by Datacenters.com Colocation

In today's digital world, businesses must have reliable sources of computing power to run their operations. While it's increasingly tempting for enterprises to create and maintain their own data centers, in many cases the resources required are out of reach or too costly.  

Fortunately, companies now have a viable option; outsourcing their data center needs to an experienced provider. Data center outsourcing has become a popular choice for organizations looking for scalable solutions, cost savings, and top-notch security that fits within their budget.  

In this blog post we'll take an in-depth look at what data center outsourcing is and how your business can reap its numerous benefits while avoiding any potential pitfalls along the way! 

Data Center Outsourcing Explained 

Data Center Outsourcing (DCO) is a practical and cost-effective solution for businesses operating on a budget or those with less experienced IT teams. Rather than incurring the substantial expenses associated with setting up and maintaining an in-house hosting infrastructure, these businesses can instead outsource their data center colocation needs.  

This allows them to leverage the expertise and resources of a dedicated provider, who can ensure optimal performance, security, and uptime, while also offering scalability as the business grows. The cost savings, coupled with access to advanced technology and expert support, make DCO a compelling choice for businesses seeking to streamline their operations and focus on their core competencies. 

DCO providers offer a comprehensive suite of colocation services that cater to every aspect of data management. They deliver computing and storage resources, ensuring that businesses have the capacity they need to handle large volumes of data. In addition to this, DCO providers oversee systems management, taking care of the day-to-day operations and maintenance of servers, networks, and databases.  

Business Benefits of DCO

The main reasons businesses choose DCO over on-site hosting are:  

Lower Costs

DCO is a strategic move that can significantly lower costs for businesses of all types. One of the primary benefits is that it shifts capital expenses to operational ones by eliminating the need for businesses to invest heavily in building and maintaining their own data centers. This not only includes the physical infrastructure but also the ongoing costs of power, cooling, security, and staff. Instead, these responsibilities and expenses are shouldered by the outsourcing company, which often has the advantage of economies of scale and specialization.  

Additionally, outsourcing frees up resources, allowing businesses to focus more on their core competencies and strategic initiatives. It also offers flexibility as businesses can easily scale their data needs up or down based on demand, without worrying about capacity constraints. Furthermore, data center outsourcing can enhance compliance and sustainability rates, making it not just a cost-effective but also a sustainable choice for businesses. 

Higher Performance 

Data center outsourcing has emerged as a strategic move for businesses aiming to achieve higher performance and efficiency. By outsourcing their data centers, companies can leverage the expertise of specialized vendors, ensuring optimal utilization of resources and eliminating the need for in-house infrastructure management. This not only reduces operational costs but also allows businesses to focus on core competencies, thereby improving overall productivity.  

Furthermore, outsourcing provides access to advanced technology, high scalability, and increased flexibility, enabling businesses to adapt quickly to changing market dynamics and customer demands. Additionally, the assurance of guaranteed uptime contributes towards consistent business operations. Lastly, with the global spending on outsourcing projected to hit $731 billion in 2023, it's evident that more businesses are recognizing these benefits and opting for data center outsourcing to enhance their performance. 


By entrusting data management to specialized providers, businesses can leverage the expertise of these third-party organizations that are proficient in meeting the legal and regulatory compliances. This not only relieves the pressure from the businesses but also ensures a more robust and comprehensive adherence to standards, as these providers are well-versed with the evolving landscape of data compliance.  

Moreover, outsourcing data centers often come with certifications, adding an extra layer of assurance for businesses about their compliance status. Therefore, data center outsourcing serves as a strategic approach for businesses to achieve better compliance while also focusing on their core competencies. 

Connect with Experts

Data center outsourcing models have been revolutionizing the way businesses manage their IT infrastructure. Among these models, colocation and Data Center as a Service (DCaaS) are becoming increasingly popular.  

In the colocation model, businesses rent space in a data center where they can house their own hardware, but share the building's cooling, power, bandwidth and security systems with other tenants. This enables them to leverage high-end data center technology without having to invest in it directly.  

On the other hand, DCaaS offers a more flexible solution. Here, businesses don't just rent physical space, but also the equipment and resources needed to run their IT operations. The DCaaS model operates on a pay-as-you-go basis, making it a cost-effective solution for businesses that need to scale their resources up or down based on demand. This model provides companies with access to cutting-edge technology without the need for hefty upfront capital expenditures. 

Consulting with industry experts before making a critical decision, such as choosing the right colocation provider, is crucial. This ensures that you have access to in-depth knowledge and insights, mitigating the risk of potential missteps. Experts can provide valuable advice on various factors such as cost, scalability, security, and reliability, which are essential when evaluating a colocation provider.  

Datacenters.com understands this need and therefore offers no-risk, no-cost consultations. We provide an opportunity for businesses to leverage our decades of expertise, ensuring they make informed decisions that align with their specific needs and objectives.  

This approach eliminates financial risks associated with consultations, encouraging more businesses to seek expert advice before committing to a colocation provider. Connect with us today to learn how we can help your business.  


Datacenters.com Colocation

Datacenters.com provides consulting and engineering support around colocation and has developed a platform for Datacenter Colocation providers to compete for your business. It takes just 2-3 minutes to create and submit a customized colocation RFP that will automatically engage you and your business with the industry leading datacenter providers in the world. 

Datacenters.com provides a platform to view and research all the datacenter locations and compare and analyze the different attributes of each datacenter. Check out our Colocation Marketplace to view pricing from top colocation providers.  


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