Considerations for Owning versus Outsourcing Data Center Physical Infrastructure

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 crossover 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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