Technology Trends Blog

Dramatic Changes Ahead for Your Data Center (And How to Pay for It)

Dramatic Changes Ahead for Your Data Center (And How to Pay for It)


A revolutionary leap for data centers is coming. The recent DCD Webscale Conference revealed that the design of the traditional, physical data center is undergoing immense transformation. The data center of tomorrow is not a “center” at all, rather, it will operate as a dynamic platform. In the same way that digital photography replaced film, your data center equipment is being digitized.
What does success look like under this new paradigm? A dynamic data­center­as­a­platform must be:

1) Variable >> dynamic and responsive

2) Software defined >> controlled by artificial intelligence, not by people

3) Connected >> a single, streamlined network, with all the pieces working together

These changes aim to improve enterprise IT scalability and flexibility – which is easy to say but challenging to execute. So while this model may still be years away for some, many technology-savvy companies are undergoing other improvements today in an effort to move away from the static architecture of yesterday’s data center.
Moving to the cloud is one such investment – giving companies much needed flexibility while reducing the need for physical assets on site. But even companies that implement 100% cloud solutions often still need basic infrastructure such as network equipment and phones.
And while these companies may be hoping to reduce IT spend, in reality, costs are typically just shifted from CAPEX to OPEX. This strategy makes sense as more companies view their technology investments as an operating expense, like a utility, simply making monthly payments and upgrading equipment regularly.
Beyond the technology investments, migrating to the cloud and shrinking your data center’s footprint is a complex project that often involves build­out expenses to repurpose space, as well as equipment purchases to outfit its new use. And with this challenge brings the question, “How do I pay for all of this?

Consider a Leasing Strategy

One solution is to consider a lease, versus a large, up-front sum of cash or taking on bank debt. With a lease, technology, equipment, software, office build­out costs, and even service contracts can be rolled into the payment. Look for a lessor with a full range of strategic asset management services, including the ability to re-sell your used assets, data sanitization, and recycling decommissioned equipment. That way, at the end of the lease, your lessor may be able to sell your decommissioned IT assets and apply the proceeds it towards future lease payments – without worrying about sensitive data leaks or storing old equipment.
While your data center – and how you pay for it – will evolve, putting the right pieces in place now can position your company for the future.

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