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Writer's pictureAllison Holland

The Importance of Choosing the Right Data Center as a Service Provider

Updated: Jul 17

The data center as a service (DCaaS) market is experiencing remarkable growth. It's projected to expand from $87.4 billion in 2023 to a staggering $476.3 billion by 2032, driven by companies seeking to outsource their data center needs to access top-tier infrastructure.


Data center as a service, also known as Infrastructure as a Service (IaaS), provides access to offsite data center resources, eliminating the need to manage on-site data centers. This model offers numerous benefits, starting with access to the latest technology. Beyond technology, it provides significant financial advantages by avoiding the high capital expenditures required for setting up an on-site data center, including hardware, physical space, and power costs.


Choosing a reputable DCaaS provider ensures high performance, high availability, and minimal downtime, which are crucial for uninterrupted business operations. Additionally, these providers have dedicated teams of professionals with the expertise to manage data centers efficiently. This expertise can be challenging and costly to maintain in-house.


Security is another critical aspect. DCaaS providers prioritize data protection, employing multiple layers of security to safeguard and back up your data. They also ensure compliance with various legal and industry-specific regulations, providing peace of mind for organizations expanding into new markets.


Selecting Your Data Center as a Service Provider


Before choosing a DCaaS provider, it’s essential to define your priorities and requirements. The rapidly growing data center market offers numerous options, making it crucial to identify what matters most to your business. We categorize these requirements into three areas: Operational, Location, and Physical.


Operational:

  • Are you utilizing multicloud services or a mix of public and private networks?

  • What legal standards and data compliance rules do you need to meet?

  • Is sustainability and the use of renewable resources important to your organization?


Location:

  • Is proximity to the data center a priority?

  • What application latencies are required by your user base?

  • How often will your team need to visit the data center?

  • Where are your SaaS and security providers located relative to the data center?


Physical:

  • Do you require specific hardware or physical components from your provider?

  • What options do you need for your compute stack, such as BareMetal, VMWARE, Nutanix, or OpenStack?

  • Which hyperscalers and internet peering exchanges are available?

  • Are there any locations you would exclude based on latency?

Understanding the benefits of DCaaS is one thing, but finding the right provider is a complex task. With numerous considerations, partnering with an expert can make a significant difference. CDP collaborates with various providers to find the best fit for your company, ensuring your specific needs are met effectively.



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