Renting Data Centers is the Latest Fad in IT
Posted 02/08/10 at 07:39:20 AM by Paul Lilly
As the tech recession rages on, there aren't a whole lot of enterprise data centers being built. That's led to a bunch of companies opting to lease data center space from third parties, InfoWord.com reports.
"Anyone moving forward with new space has to consider a third-party operating," says Michelle Bailey, an analyst with market research firm IDC.
Bailey added that few IT departments have the funds to build new data centers, leading to an large number of firms renting out space. So much so, in fact, that all the space that was created during the dot-com boom is now starting to be filled up. And why not, considering that financing a new data center can potentially run over $100 million.
"They're all spooked. They don't want the risk of having debt increase," says Carl Weddle, director of IT at Quality Trailer Products Inc.
Maybe I'm missing the point
Submitted by fry on Mon, 02/08/2010 - 12:42pm
Maybe I'm missing the point here, but only large companies can afford to build their own data centers. Most rent colo space from third parties. It's been this way for years. Nothing new.
Submitted by gibsurfer84 on Mon, 02/08/2010 - 10:26am
I work for a company that is currently developing a product that will exist soley in the "Cloud", meaning that we will use google apps for mail, which is perfect for what we need. We will rent a few servers from Rack Space for cheap and have a whole company running without touching a physical peice of hardware and do it for pennies compared to running a few servers in my basement. What a wonderful time we live in.
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