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ITDebate: datacenter outsource economics

By itdebate ·
The economics of data center outsourcing (DCO) have changed dramatically in the past 10 years, and DCO vendors are expected to be able to pass on savings to any client via low-cost MIPS (millions of instructions per second). But Gartner suggests that a relationship with a DCO vendor requires careful consideration for it to be valuable. What have been your experiences with DCO? What kind of sales technique did the vendors use? What would you recommend to someone considering outsourcing? You can read the related Gartner article, which will be posted 3:00 AM Wednesday, at http://www.techrepublic.com/article.jhtml?id=r00620001213ggp01.htm

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ITDebate: datacenter outsource economics

by Trish_Sutter In reply to ITDebate: datacenter outs ...

Your decision making IT folks should be employees, not contractors. You must remember that a contractor/vendor will not always come up with the most efficient solution. They do work for another company and it is in their best interest to build morebusiness for their company and bill more hours.

Several major auto companies and tier-1 suppliers that had outsourced all IT in the 80's are now doing a major change in IT policy. They found that IT contractors were running their business and making major business decisions that should have been made by internal staff. Of course the vendor's agenda is to build more business for themselves.

Personnally, I have experienced having to correct vendor business solutions to make them more efficient on numerous occasions. Not that they are all like that, but I find it more common then you would like to believe.

As for data centers in particular, I would ask how mission critical are your applications. If you do go the outsourcing route make sure you know your business requirements and get in writing the Service Level Agreement that will support those requirements. Set it up with financial incentives/penalities for the data center vendor to meet the SLA.

I hope you find thesecomments useful!

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ITDebate: datacenter outsource economics

by itdebate In reply to ITDebate: datacenter outs ...

Your answer was featured in our IT Debate TechMail. To receive your free subscription to the IT Debate TechMail, sign up at http://www.techrepublic.com/techmails.jhtml

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ITDebate: datacenter outsource economics

by itdebate In reply to ITDebate: datacenter outs ...

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