As a sales rep, I regularly get asked by clients for a cost estimate of moving their in house datacenter into a real datacenter like one of ours. Sometimes we can save a customer a lot of money with the move, sometimes the break even, and sometimes they spend a little more. Ultimately, anyone that moves usually ends up with a better IT solution for their dollar, even if they’re spending a little more to do it. Here’s a few bullet points to consider:
1) Power - You’re likely paying for power at your office and with average nationwide power pricing, you can expect to spend $35 per server per month just to keep them powered on 24/7/365. With a server farm of 10 servers, you’re looking at about $4,200/year on your power bill. It’s something a lot of offices never think to consider, but if you don’t really like that $4,200, you can PayPal it to me. Oh? Now you like it? That’s what I thought.
2) Redundancy – Is your office prepared to handle a power outage? Can you operate with your servers down? Do you have redundant air conditioning? If you’re in a pretty standard office complex, you probably don’t have favorable answers to any of those questions. Datacenters are traditionally placed with access to two or more power grids. Should power fail, all of our datacenters are on a battery backup. While the battery is going and if power is not immediately restored, a generator kicks on and several days of fuel is already on site (plus fuel companies are on contract to refill the generator tanks before the fuel runs out.) Your office definitely doesn’t have that. Does your office air conditioning go out every once in a while? If it does, you risk having to shut down your servers or power them down to protect them from heat damage. Our datacenters all have redundant cooling – and no just so we’re up if one fails, but so we’re up if one needs to be repaired.
3) Connectivity - This touches a bit on redundancy, but do you have two connections to your office from two different bandwidth providers? How often does your business grade connection go down? If you’re anything like a typical office, it’s a few times a year that you’ll lose internet connectivity. If that takes down your website, your phone system, your email system, etc. it’s costing you business, productivity, or both. How much is that internet connection costing to the office? I had a client paying $600/month for business grade DSL and business grade cable internet (for redundancy.) When he moved in with us, he had full redundancy from 4 providers instead of 2 and he was paying less than $100/month.
There are a whole host of other reasons to outsource your datacenter needs to a real datacenter, such as support (someone can watch your servers 24/7/365 for you cheaper than you can hire someone to do it), capital reduction (we can rent you servers cheaper than you can buy them), and expandability (really? you’re going to put another rack in that already hot server closet at the office?)
So next time you’re looking at your IT budget, consider all of the hidden costs of hosting your services in house. Even if it’s a break even move, get out of there so you save yourself a headache!