Study examines pros and cons of locating data centers in-house or out

January 22, 2007—Baltimore Technology Park (BTP), a premier data center, has announced the completion of a study that examines the costs for small-to medium-sized (SMB) organizations of colocating their key IT systems at a data center versus building or expanding an in-house solution.

The technology needs of organizations vary greatly, and an SMB with “typical” IT needs does not exist. BTP based its analysis on a company that currently needs 20 server cabinets and plans to grow by 50%, 1,120 total square feet of space and 43 watts of power per square foot.

The study found that general room construction with a modern power design, including an advanced electrical system, HVAC, fire suppression and security systems, would cost about $562,000 to build. This figure rises to over $707,000 when costs such as contingency (10%), architect and engineering fees (6%) and a project manager consultant (10%) are factored in. In addition, annual recurring costs to maintain such a facility (utilities, bandwidth, maintenance, security personnel, insurance, taxes) could total over $270,000.

For the same hypothetical company, BTP’s research found that colocating IT infrastructure within a data center would necessitate roughly $39,000 in startup costs, with recurring annual fees estimated at $206,000.

“While colocating critical IT systems at a data center is generally more secure and affordable than building an in-house solution, every organization’s situation is different,” says Jim Weller, President of Baltimore Technology Park. “Nonetheless, our study provides essential information on the myriad factors an organization should consider when deciding the best way to meet their current, and future, data center needs.”

To obtain a free copy of BTP’s “build versus buy” study, send an email.

BTP is a new 30,000-square-foot, purpose-built facility that provides the highest level of security and redundancy for businesses of all types and sizes who require reliable data center services. For more information, see the Web site.

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