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Data centres turn to outsourcing to meet capacity needs

Data centres turn to outsourcing to meet capacity needs

By:  James Niccolai  On: 10 May 2011 For: IDG News Service (San Francisco Bureau) Creator
 

The Uptime Institute says large companies are putting workloads in third-party data centres. A new survey lists the primary ways companies said they would boost capacity

More large companies are turning to collocation providers to relieve capacity constraints in their data centres, as a way to avoid the high cost of building their own new brick-and-mortar facilities, two studies suggest.

The Uptime Institute, in its first annual data centre survey, reported Tuesday that more than a third of the large companies it surveyed -- 36 per cent -- expect to run out of capacity in at least one of their data centres over the next 18 months.

Server consolidation and upgrading of power and cooling equipment are the primary ways the companies said they would boost their capacity, the survey showed. But a significant portion -- 29 per cent -- said they plan to lease collocation space, while 20 percent will move workloads to the cloud.

That's notable because large companies traditionally have kept their IT operations in-house, said Matt Stansberry, a research analyst with the Uptime Institute. "This is a trend we've been seeing," toward more companies managing IT operations that are outside their own data centres, he said.

A separate study commissioned by Digital Realty Trust, which builds and operates data centres for third parties, showed a similar trend. Sixty percent of the respondents who planned to expand their data centre capacity in 2011 said they would lease space from a third party rather than build their own data centre. That was an increase of 7 per cent over last year, which follows an upward trend over the past few years.

"Increasingly, enterprises appear to be favoring the lease model, as fewer companies are choosing to go it alone on these capital-intensive projects," Michael Foust, Digital Realty's CEO, said in a statement.

The Uptime survey quizzed 525 large data centre operators, mostly in North America, in March and April. They included banks, insurance companies, collocation providers and government agencies -- what the Uptime Institute called "typically conservative organizations."

Digital Realty's study involved 300 IT executives directly involved in data centre decision-making at large corporations in North America.

The fact that so many data centres are running out of power, cooling or floor space isn't a surprise. Many companies put data centre projects on hold during the recession and are just now starting to ramp up spending.

"Companies stretched server life cycles an extra 12-24 months, sat on their wallets and rode out the crisis. Now, a lot of shops need to do major infrastructure upgrades," Stansberry said.

A new data centre can cost hundreds of millions of dollars and take a year-and-a-half to build. They are also expensive to operate, mostly because of the power needed to run the IT gear and cooling equipment. That may explain why even large, conservative companies are willing to move IT workloads outside their own data centres.


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james niccolai James Niccolai is a contributor to the International Data Group (IDG) News Service, which publishes global technology stories from bureaus around the world to more than 300 publications in more than 60 countries.

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