Build or Lease Your Data Center, Which One is The Best Choice?

Build or Lease Your Data Center, Which One is The Best Choice?

By Published On: October 28, 2022Categories: Article
Ilustrasi dasbor analisis dengan latar belakang transparan

Computerized systems, or IT, have now become an important part of ensuring company continuity and scalability. When talking about a computerized system, the Data Center is one thing that must get serious attention.

The existence of a Data Center does not only ensure that related parties can access the data needed for operational purposes. A good data center must also ensure that its facilities have good security so that they cannot be physically accessed by unauthorized parties.

When a company is dealing with the procurement of a Data Center, then there are two possible options, which are leasing (outsourcing) or building it. Between these two options? Which is the best choice?

Strengths and Weaknesses

For a company, having a data center is not only limited to increasing the company’s value in the eyes of the public. Companies that choose to build their own data center usually have an orientation to ensure the security of the data stored.

However, the construction of a data center also has many challenges. The first challenge is of course initial capital.

Not only does it require land that is safe from disasters, but there are also other needs of great value such as hardware procurement, building constructions, network and electrical installations, air conditioning systems, security, and also certified human resources to operate the data center.

The second challenge is a matter of time. Due to the level of complexity, the construction of a data center cannot be done in a short time. For Tiers 3 Data Center, for example, the development process takes up to 20 months.

In short, when companies choose to build their own, companies need to consider the costs for procurement, distribution, and maintenance. At the same time the unpredictable risk is quite high.

Then what about leasing a data center?

Taking into consideration its practicality and lower capital, leasing a data center could be an ideal option.

If we compare it to building our own, the data center leasing price is certainly much lower. Even companies can lease according to their needs. If there is a storage need increased, companies can also upgrade to the required capacity.

By leasing, the company will get assurance from the data center that has been built by a third party with certified human resources for data center management.

Meanwhile, in terms of time, data center leasing takes shorter time. The company’s IT team only needs to coordinate with the data center provider’s IT team to make some alignments. This option is most suitable for those who need a data center in the near future.

Which is the Best Choice for the Company?

Each option has its own advantages, disadvantages, and risks. To determine which is the best choice for the company, it must be conformed to the needs and also the acceptance of the risks that may occur.

For companies whose needs for data centers are unavoidable and always increasing, for a long-term strategy the choice of building your own might be an option that needs to be considered.

However, it should be realized that this option requires large capital and quite a high risk.

As for leasing a data center, one of the drawbacks is that the company must prepare a leasing fee for a certain period of time, with a predetermined nominal. However, companies will be provided a reliable infrastructure and minimal risk.

As an option, EDGE DC is one of the Data Center providers that can be considered. To ensure service security and reliability, EDGE DC has several certifications such as TUV Rheinland, OJK, and ISO 27001. To find out more about the best options for your business, contact the EDGE DC team. We are ready to provide the best solution for your IT infrastructure.

Share our story!

infografis-data-center-tiersDefinition of Data Center Tier Levels, In Simple Terms
Perkotaan di malam hari yang penuh kilapan lampu5 Reasons to Choose Data Center Located in Downtown Jakarta