Cost Comparison: In-House Data Centre vs Managed IT Services
September 7th, 2015 Matt McCue

As a business grows, its dependency on technology also increases with new machines, operating systems, and applications continually running. 

An increase of bandwidth and active processes may grow with the organization’s success, and the discussion of whether or not the company should invest in its own data centre may be inevitable. Deciding on this investment is a balance of pros and cons, with the costs associated with owning your own data centre being one of the most important factors.

In this Tridacom article, we’ll discuss the costs of owning your own data centre versus the costs of using Managed IT Services.

 

Owning Your Own Data Centre

 

Server Management and Maintenance

Maintaining a data centre is a highly complex task which is something that should be left to experienced and skilled Data Centre Managers. As your data centre grows with more servers added, the complexity and likelihood of failure increases. According to Payscale.com, a Data Centre Manager in Canada earns an annual salary between $54,000 and $122,000.

 

Cooling Costs of a Data Centre

A data centre and its machines generates high heat which is damaging to the servers operating inside the data centre. A data centre must be cooled using industrial-grade air conditioners so that the machines don’t overheat and crash. When considering the costs of the data centre and on-site servers, air conditioning expenses must be calculated into the initial purchase and maintenance of a data centre. 

 

Hardware Costs

Servers can be an expensive purchase that can take weeks from the initial purchase until they’re ready to go live. Once ordered, a server must be shipped from its suppliers, installed in the data centre, cabled to other data centre machines and workplace environment. The size of the server your organization will require depends on the amount of users and tasks that will be used by the server. A small business may be able to purchase a server for under $1000, which may meet the needs of the organization and its bandwidth. A enterprise-level organization with a high bandwidth will require one or more high-end servers and operating systems, all of which will cost tens of thousands of dollars. 

 

Operating Systems and Apps

An operating system for your server may or may not be included in the purchase of your machine. Selecting your own operating systems depends on the needs and amount of users within your organization. An enterprise-level company will require an enterprise edition while a smaller company could get by with a less expensive operating system such as Microsoft Small Business Server, which allows for up to 25 users.

Software applications are also needed so that your server can perform essential services such as email, file sharing, and database services. Purchasing any of these applications’ licensing will cost your company a considerable amount, while not including support.

 

Managed IT Services

Managed IT Services is a subscription-based service which your business can use to increase the efficiency and operational status of your data using a third-party’s data centre (Tridacom operates its own data centre).

A properly trained and experienced IT Services Manager will act as your organization’s Data Centre Manager, without all of the costs associated with an in-house employee. Managed IT Services operate as a Data Centre Manager would, maintaining and overseeing the data centre’s operation and uptime. 

 

Redundencies

Our Managed IT Services come with any number of redundancies within the data centre to protect your business’ uptime. If one server fails, another will pick up its workload so that your business can continue to operate without disruption. This is a best practice for essential processes such as email servers, CMS (customer management systems), VoIP-based telecommunication systems, and file storage systems - downtime to any of these systems could grind a business to a halt. 

 

Operating Systems and Applications

A Managed IT Services company (such as Tridacom) purchases enterprise-level operating systems and applications that we can grant our clients access to. This means that your employees will have the most up-to-date enterprise-level applications and operating systems to use, including email servers and collaboration applications. 

 

Higher Uptime Rates

One of the most important, if not the most important aspects of a Managed IT Services subscription, is a higher uptime rate when compared with in-house managed data centres. Our team of Data Centre Managers continually watch the servers within our data centre, on the lookout for potential problems which could cause downtime. We work proactively to ensure these problems are resolved before they cause downtime to your network. Our team of IT Consultants will also devise Disaster Recovery and Network Continuity plans which we’ll use in the event that an issue arrises that causes downtime to your network or server. Because we have plans in place to address any disruptions, downtime is measured in seconds or minutes.

 

A Managed IT Service is a monthly service plan that operates on a subscription-based billing, making it easy for your business to budget IT costs and expenses. Our team of Data Centre Managers can further reduce the operating costs for your company’s IT department by hosting your files, applications, and operating systems in our data centre. This eliminates the need to purchase server machines, outfit server rooms with air conditioning, and hire Data Centre Managers.

The money that these savings generate can be used to invest in new projects or products to increase the company’s revenues, which may strengthen the organization’s market share and competitive advantage. 

 

To learn more about Managed IT Services by Tridacom, please contact us today for more information. Our team of IT Consultants are available at 1-877-489-0123 to discuss your organization’s IT requirements and business goals. We can provide a no obligation estimate for Managed IT Consultants, based on the number of users and bandwidth. 

 

Tridacom is a Canadian IT Consulting and Telecommunications company with offices in Edmonton, Regina, Toronto, and Vancouver.

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