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Create or Outsource Your Data Center?

Published on 21 March 14
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The cloud today provides a lot of tactical advantages for corporations around the world. This is because it allows data to be accessed from just about any place where there’s wireless or landline internet connectivity. There may be times, mainly when larger companies have a lot of servers, when it pays to create their own data center. While there are many that prefer to outsource their servers, there are also those that prefer to create their own collocated data centers.

First and foremost, it is important to understand that this topic revolves around two things: private and public cloud. Having a private data center also means having a private cloud while using an outsourced server means using a public cloud.

Mitigating Private Cloud Usage

There are many arguments revolving around private clouds or the need to create a data center just for the company. One of it is that you have more control over the environment on which your data resides. In addition to that, there are some applications that require complex computations that the servers in the public data center are not optimized for. Netflix for example, required a lot of computational power in converting their high quality movies to smaller ones that can be streamed.

Computing development work of any sort, whether hardware related, or application related require robust computing solutions on which the developers can test their innovations, which can subsequently become mainstream if the project proves its viability in terms of practice and expense.

Netflix, which has strong opposition, decided to create their own data center and optimize their hardware to suit growing movie storage needs. This is where a private data center could offer strength. However, creating your own data center requires a huge amount of investment monies that promises to pay off in the long run. Because of this, creating a private data center might not be a viable option for a smaller company.

Aggravations of Cloud Servers

As for the arguments on outsourcing the data center, these are considered to be cheaper as there isn’t the need purchase the hardware required. Usually, these are available via leasing instead. In addition to that, outsourcing means that there won’t be a need to pay for construction fee, cooling costs, taxes, etc. In addition to that, public cloud are sometimes more optimized in a specific area. Sites like, for example, offers publicly available adult videos, and relies on cloud servers to help lighten the connection loads.

These two topics can be quite lengthy but it is possible to break it down like this. Private cloud is viable when you need to protect highly sensitive data or have the need do things that public cloud servers cannot or are not optimized to do it. Public clouds, on the other hand, will fit under other circumstances. In the long run, private cloud servers are much cheaper, but it takes a lot of money to start one in the first place.

Wrapping Up…

If you use your technology regularly in order to be productive, then you will probably find that you are somewhat reliant on it in order to get your work done. Even if you don't use technology often in a work setting though you'll find that it's still often very important as a tool for getting things done - whether that means finding your way somewhere following the built-in GPS, or whether it means using it in order to create spreadsheets that will help you to handle your house move or your budgeting.

If you ask five people for their definitions of ‘the cloud’, the chances are you will receive five different answers. So before working out what - if any - cost savings can be made through switching to cloud computing, we should be clear what is meant by the term ‘cloud computing’. When considering a switch to cloud computing, cost is going to be a big deciding factor. Can making this change really save you money?

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  1. 29 April 14

    Nice Article David. Cloud Server hosting provides you more controlled environment and cost saving too. Many organizations outsourcing their Data Center and many have their own created data centers for their data storage according to their requirements.

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