Data Centers

Considerations for Owning vs. Outsourcing Data Center Physical Infrastructure

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Executive Summary

When faced with the decision of upgrading an existing data center, building new, or leasing space in a retail colocation data center, there are both quantitative and qualitative differences to consider. The 10-year TCO may favor upgrading or building over outsourcing, however, this paper demonstrates that the economics may be overwhelmed by a business’ sensitivity to cash flow, cash cross-over point, deployment timeframe, data center life expectancy, regulatory requirements, and other strategic factors. This paper discusses how to assess these key factors to help make a sound decision.

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