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Cost is one the drivers in the data centre hosting decision making

ad hoc Study
Published: 2014-04-27

Data centre services are set to grow strongly over the coming years. Huge amounts of application data have to be transported and supported, begging the question of how they should be managed and protected and where they should be placed. In a recent global study, InfoCom looked at the drivers behind a company’s decision to adopt data centre services and which advantages companies hope to derive.

In the study, InfoCom identified 5 main drivers: cost reduction, service availability, risk management, increased/enhanced security and cloud migration. The strongest drivers are indeed service availability (continuous availability or 100% commercial availability), risk management (disaster recovery) and cloud. But cost control still play a significant role. As cost reduction strategy, many companies wish to outsource completely the hosting and management of their business applications in an attempt to resize internal resources.

Other companies, especially in the banking, media, content and IT, put business service availability at the top of their priorities, due to the crucial role played for their customers’ satisfaction — a competitive advantage in an increasingly price competitive environment. Several of these companies will not only have geo-redundancy requirements, whereas also business continuity issues.

Thirdly, connected to business continuity, there is a growing trend to consider disaster recovery planning as part of a company’s risk management strategy. During the past decade, this driver has become increasingly relevant in light of terrorist threats and natural catastrophes. An incremental number of companies considers disaster recovery a fundamental element of their business continuity plan. Business continuity and disaster recovery are sometimes approached simultaneously and considered increasingly critical for a company’s risk management strategy, with a direct impact on the company’s insurability, financing eligibility and even industry certifications.

Last but not least, some companies are seeking to host some of their data and applications in third party data centre facilities in order to increase their managed security, instead of investing in the upgrade of their own facilities to increase their own security levels.

Finally, the migration of some business applications to private clouds is also pushing the demand for data centres to host application data.

Published: 2014-04-27

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