I’d like you to imagine for a moment that you’re a growing business in need of data center space. Despite knowing that you have several options (like colocating) that don’t require large investments up-front, your business defies expectations and choses to build your own data center. The business is doing well, so this seems like the right decision.
The Uptime Institute estimates that the average-powered core and shell typically ranges from $20 million to upwards of $100 million. That figure excludes data center pods or modules, however, meaning that in the best case it costs $30 million minimum just to turn on the first server. Add in the costs of land and power, and all of a sudden, this decision by your business to build its own data center gets very expensive.
If you have the funding on-hand or are able to secure enough capital through other means, you can go ahead and build your facility. With your facility built, there’s a chance that your investment will pay dividends as you maintain full control of your data center throughout the hopefully long lifetime of your business.
Five years down the line, however, you may face problems. Assuming that you built your data center based upon the capacity you thought you’d need moving forward, exponential growth could mean that you run out of space before you predicted. What then? You’re back to the drawing board and again forced to reinvest in an unsure investment. Things could also go the other way if business goes south. Should your business contract, you’ll be left to recoup the costs not only of your initial investment in the business itself, but also of that multi-million dollar data center you decided to build. While the tech giants of the world do successfully invest in their own data centers, the uncertainties for smaller players in the data center game are many.
This stressful data center lifecycle for businesses can be mitigated by colocating through a provider like Telx. Unlike many other data center services providers that are slow to scale and slow to adapt, Telx was built from the ground up with the capacity to maintain lifecycle scalability throughout all stages of business growth.
What this means in practice is that the growth trajectory for the hypothetical business described above need not be limited by an investment in the construction of a data center. The same could be said for enterprises whose needs may constantly evolve over several years, or a startup that only needs a few racks for its current volume of business. Our solutions scale to meet your data center and connection needs today and into the future, no matter how big or small you may become in the next few years.
Colocating through Telx offers significant capital expenditure savings, competitive advantages, and cost containment over the alternative of constructing your own data center. From startup to enterprise, businesses of all sizes can utilize Telx’s capacity. To learn how, reach out to us via the contact page of our site, or by Twitter, Facebook, or LinkedIn.