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How Data Centers in India Provide Cost-Efficiency

Published on 17 February 18
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There is a huge potential for the growth of data centers in India. Reports and analysis have forecasted the data center market to touch about $4.5 billion this year. It is also predicted that the Indian data center industry will soon become the second largest market in the Asia-Pacific over the next couple of years. The key factors for the increase are attributed to digitalization, government initiatives, improved connectivity services and data speed.

Every online business, whether small or big, require a data center where they could house their IT. If it is not properly running, it could mean bad performance resulting in huge losses in customers as well as money.

Two model options:

Data centers can be operated in two ways. One is the client-owned internal data centers where the organizations build, manage, and operate their IT in-house by using technically qualified persons. The second model is outsourcing the IT requirements to third-party service providers. The outsourced model is taking precedence. Consumer demands, high competition, rising costs are compelling organizations to adopt the services of the third-party data centers in India.

Preference to local markets:

Several organizations world over, are preferring local data centers for better security and simpler regulations. Indian organizations are following the trends and favouring the data centers in India. Many of the global bigwigs including Microsoft, Amazon, Google, Alibaba etc are moving to India for their cloud data centers. In fact, Google opened its cloud data center at Mumbai a few days back. By housing their IT locally, a business can see vast improvements in speed with lower latency.

Some other factors that influence the shift to outsourcing IT to the data centers in India include

Assured uptime: Data centers are administered by SLAs. Providers must make sure they adhere to what they commit. A minimum of 99.95% network availability is necessary for the organizations and the service providers are better geared to meet the commitments.

Cost savings: There is a huge investment required to run a data center. Power backup, cooling solutions, safety equipment, security, physical space, overheads on components, spares and technical personnel to maintain the infrastructure can run into high figures which can be avoided.

Scope for scalability: Business performance can be compromised due to both underutilization or overutilization of the resources available in an in-house data center. The biggest limitation in an in-house capacity is the opportunity to scale. A business cannot provide for space, resources, and upgrading to new technologies instantly in an internal environment.
Flexible: The third-party data centers are built for such challenges. They are huge and up-to-date with the latest technology. Constructing a data center and modernizing it requires lot of time, money, and resources that could otherwise be utilized for business growth.

Security: The service providers invest wisely on physical security. The investments and spares come at a high cost. To avoid the risks of theft, the providers maintain tight security with armed security officers manning the data center. Access into the server areas is restricted to only those that are authorized with biometric cards. The entire building is kept under CCTV surveillance.

The significant benefits of outsourcing data center in India are huge cost savings, availability of latest infrastructure and efficiency in management and administration. This allows an organization more time and resources to focus on core business growth and expansion.

However, when entering into a contract, it is necessary to make sure that it does not restrict the client from using the services of any other vendor for some provisions. The provider must have a support team working 24/7. It is important to do a complete check on each clause to avoid any type of disagreement be it on price, service terms, control or support.
How Data Centers in India Provide Cost-Efficiency - Image 1
There is a huge potential for the growth of data centers in India. Reports and analysis have forecasted the data center market to touch about $4.5 billion this year. It is also predicted that the Indian data center industry will soon become the second largest market in the Asia-Pacific over the next couple of years. The key factors for the increase are attributed to digitalization, government initiatives, improved connectivity services and data speed.

Every online business, whether small or big, require a data center where they could house their IT. If it is not properly running, it could mean bad performance resulting in huge losses in customers as well as money.

Two model options:

Data centers can be operated in two ways. One is the client-owned internal data centers where the organizations build, manage, and operate their IT in-house by using technically qualified persons. The second model is outsourcing the IT requirements to third-party service providers. The outsourced model is taking precedence. Consumer demands, high competition, rising costs are compelling organizations to adopt the services of the third-party data centers in India.

Preference to local markets:

Several organizations world over, are preferring local data centers for better security and simpler regulations. Indian organizations are following the trends and favouring the data centers in India. Many of the global bigwigs including Microsoft, Amazon, Google, Alibaba etc are moving to India for their cloud data centers. In fact, Google opened its cloud data center at Mumbai a few days back. By housing their IT locally, a business can see vast improvements in speed with lower latency.

Some other factors that influence the shift to outsourcing IT to the data centers in India include




Assured uptime: Data centers are administered by SLAs. Providers must make sure they adhere to what they commit. A minimum of 99.95% network availability is necessary for the organizations and the service providers are better geared to meet the commitments.

Cost savings: There is a huge investment required to run a data center. Power backup, cooling solutions, safety equipment, security, physical space, overheads on components, spares and technical personnel to maintain the infrastructure can run into high figures which can be avoided.

Scope for scalability: Business performance can be compromised due to both underutilization or overutilization of the resources available in an in-house data center. The biggest limitation in an in-house capacity is the opportunity to scale. A business cannot provide for space, resources, and upgrading to new technologies instantly in an internal environment.

Flexible: The third-party data centers are built for such challenges. They are huge and up-to-date with the latest technology. Constructing a data center and modernizing it requires lot of time, money, and resources that could otherwise be utilized for business growth.

Security: The service providers invest wisely on physical security. The investments and spares come at a high cost. To avoid the risks of theft, the providers maintain tight security with armed security officers manning the data center. Access into the server areas is restricted to only those that are authorized with biometric cards. The entire building is kept under CCTV surveillance.

The significant benefits of outsourcing data center in India are huge cost savings, availability of latest infrastructure and efficiency in management and administration. This allows an organization more time and resources to focus on core business growth and expansion.

However, when entering into a contract, it is necessary to make sure that it does not restrict the client from using the services of any other vendor for some provisions. The provider must have a support team working 24/7. It is important to do a complete check on each clause to avoid any type of disagreement be it on price, service terms, control or support.

How Data Centers in India Provide Cost-Efficiency - Image 1

This blog is listed under Data Centre Management and Data & Information Management Community

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