For companies that do not want to operate an on-premises data center or prefer to give up their existing data center, there is an alternative: co-location. The data center is set up with an IT provider, while the server operation remains in the hands of the outsourcer. Co-location can be used for business continuity and disaster recovery.
Co-location has turned out to be an alternative for the self-operation of a data center. It is the right choice for companies that operate their own IT, but do not want to be burdened with data center infrastructure. With co-location, the user company retains complete access to the hardware, but is no longer burdened with Facility Management. Maintaining owned buildings for the operation of IT resources is no longer needed, including physical security, fire protection, (emergency) power supply and air conditioning. A co-location provider like T-Systems can takes this over, making space available at its own data center premises. In addition, energy-efficient co-location data centers offer the opportunity permanently reduce costs.
Only a few companies know the total costs of ownership (TCO) of their data centers, meaning the total costs for acquisition and operation. And yet the TCO is the most important factor for a decision in favor of co-location, even if a blanket one-to-one comparison with self-operation is difficult. Co-location is about the ratio of CAPEX to OPEX. While the investment expenses drop, the operating costs can rise. The costs for infrastructure management become transparent for the first time in many companies. Direct cost advantages result primarily from energy-efficient data centers.
To be prepared for the future, companies need four building blocks: connectivity, cloud and infrastructure, security and digitalization. Co-location releases the budget for digitalization and removes the burden of routine tasks.