Why Do Companies Need to Switch from In-house DCs?
Do you know? Even with the growth of new and advanced IT infrastructure like Cloud Computing, Colocation, and Hyperscale DCs, a mass of companies still trusts in In-house data centers to handle their crucial operation works. But now time changes and companies understand the importance of cloud computing for efficient business continuity, especially in the COVID-19 pandemic.
By setting up their in-house DCs, businesses end up limiting access to services that can lead to greater business efficiency, agility, and scaling. The concern about security and control have kept CIOs away from using third-party DCs or Public cloud. Especially when it is related to the prevention of business-sensitive applications & their associated information. For example, the financial services industry deals with a huge amount of customer transaction details. It is great for them to move or shift to the cloud, but the security concern holds their hand and continues to rely on in-house DCs.
It concludes that the most crucial and sensitive data of the business do not get the advantage of hyperscale environments. Generally, the non-mission-critical systems like HRMS, small departmental applications, and web portals are the first to migrate outside and host on off-site Datacenters.
According to a report, these viewpoints seem to be very appropriate with this logic. As per the Gartner reports, the traditional in-house DC model will show a decline in the upcoming years. Also, by 2025, only 20 % of enterprises would have traditional DCs, as compared to 90 % in 2018.
The noteworthy factor that urges the move to outsources data centers is the resilient backing by the technology community globally towards cloud-based applications and enterprise-class data center storage solutions.
With cloud becoming a trending technology today, we are seeing new innovation within the cloud ecosystem at a very high rate as compared on the on-premise software range. In fact, every big name in the enterprise software vendor like SAP, Microsoft, Oracle, Salesforce etc. has made impeccable investments in building cloud development communities.
However, the loopholes in security, user experience, and performance are best in the cloud development ecosystem, with a hope that they would be on par with on-premise systems in the upcoming years. This motivates enterprises to shift from an in-house data center to outsources infrastructure. For this, NetForChoice is a great choice as we are the Tier-4 data center company with comprehensive security and disaster recovery solutions.
As well as, another important concern is – who would carry out the transition within the industry?
It would be the enterprises that consider switching off their on-premise data center to off-site DCs to save huge on IT expenses. Furthermore, it would be considered that the change would be carried by the small and mid-sized companies, rather than the large enterprises. This is because small & mid-sized businesses use cloud computing for their IT requirement to minimize their TCO. Such companies have greater motivation to shift completely to the off-site remote data center. This saving helps them to invest in enterprise-class security, governance, and robust data center.
Final Say!!
In the end, we can say that the in-house DC model is going to disappear in the future. So it is good for CIOs to move away from in-house data center management to potentially be in a highly connected and hyper scale future.
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