TOTAL COST MODELLING AND STRATEGIC SOURCING STRATEGIES FOR DATA CENTRES IN UPCOMING ERA

The developing demand for IT resources from organizations that are constantly increasing and improving their businesses adds significant pressure on data centres. Industry predictions show that data centre traffic will increase at a CAGR of 23% till 2018, and their workload will increase by 14%. A certain growth in data centre investments will be witnessed along with the improving economy and increasing demand. For many organizations, it becomes essential to frame a robust sourcing strategy to control their data centre requirements. Depending on the organization’s IT demand, the strategy should help them figure out whether to build a data centre or choose colocation services. In both cases, a number of cost elements add onto the high costs of the facility. A total cost of ownership (TCO) model is a viable tool to estimate the overall costs involved in a data center facility.