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Data center outsourcing dilemma: CIOs weigh in on owning vs. renting
This article is part of the September 2010 Volume 4 issue of CIO Decisions
Driven by the need to consolidate after massive build-outs in the mid-2000s, enterprises are investing in more modular and energy-efficient data center designs. The question, more than ever, is whether it's better to own or rent. More on data center outsourcing Data center outsourcing: Ten best practices Study: Data center outsourcing increases; most happy with results Seven outsourcing criteria for service provider evaluation For Angelo Valletta, senior vice president and CIO at Sun National Bank in Vineland, N.J., the issue of data center outsourcing came down to control, flexibility and time to market. He has worked in data centers all his professional life, at one time in a full data center outsourcing model. His mind is open, but when Sun National ran the ROI, it decided to keep its data center and core banking application in-house. Renting space in an external data center would have been more of a challenge, requiring navigation through an architecture that Sun National didn't own. "Keeping our core banking application ...
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News in this issue
Is it better to own or rent data center space? CIOs are seeking more modular, green data center designs and considering data center outsourcing, as consolidation takes precedence.
Demand for data center colocation is up, and so are the prices, prompting a debate over whether investments in colocation services match the ROI.
Public and private cloud computing have penetrated enterprises, forcing IT to develop a plan for managing two distinct service-delivery models.