The Strategic Move: Why Outsourcing Data Center Services Drives Success

Is managing your on-prem data center holding your business back? It might be time to shift to a more efficient, cost-effective solution — outsourcing. While the end result of offloading your data center operations can be a game-changer, the process of getting there can seem overwhelming. From evaluating the right partner to ensuring a seamless migration, the journey is filled with complexities that can leave even the most seasoned IT professionals overwhelmed. But with the right guidance and strategy, this transition can become a streamlined process that sets your business up for long-term success.

In this blog, we’ll walk you through the key benefits of outsourcing your data center operations and provide insights into what to look for in a trusted tech provider — helping you navigate challenges with confidence and unlock greater efficiency, scalability and innovation.

A Growing Shift from On-Prem to Outsourced

For decades, corporate data centers have been the foundation of enterprise IT. While their importance still remains, their role as a central element in an organization’s digital infrastructure is diminishing. Today, businesses are recognizing the advantages of partnering with an external provider to manage data center operations, freeing them from complex and costly IT responsibilities and enabling a greater focus on driving growth. According to Uptime Institute’s data center survey data, on average, 58% of organization’s IT workloads were hosted in corporate data centers in 2020. In 2023, this percentage fell to 48%, with respondents forecasting that just 43% of workloads would be hosted in corporate data centers in 2025.

Breaking Down the Benefits of Offloading Data Center Ops

Offloading on-prem data center services to an external provider offers several benefits, including optimized operational costs, improved scalability and access to cutting-edge technologies without the need for heavy capital investment. By partnering with an expert data center team, businesses can enhance reliability and security while freeing up internal teams to focus on what they do best. This approach not only delivers better uptime and performance but also provides the flexibility to adapt to evolving demands, making it a smart choice for organizations looking to future-proof their IT strategy.

Cost Savings
By offloading data center infrastructure and operations, businesses can reduce the costs associated with maintaining their own IT resources. This includes savings on hardware, software and personnel, in addition to elimination of maintenance costs, upgrades and operational overhead.

Improved Scalability and Flexibility
With an external data center in the mix, businesses can achieve the flexibility to adjust resources based on demand. This is especially advantageous for businesses experiencing rapid growth or seasonal fluctuations, allowing them to scale without incurring additional costs.

Enhanced Security and Compliance
Reliable data center providers also ensure data protection by implementing advanced security and around-the-clock support. Additionally, data centers often engage in external audits of their practices to validate the success of their efforts. Industry standards, such as SSAE 16, SOC 2 Type 2 annual audits, along with PCI DSS and HIPAA compliance, provide peace of mind that all data security regulations are being met.

Focus on Core Business Functions
By offloading the systems that support your company’s critical IT infrastructure, businesses are able to free up valuable time and shift focus to driving business growth and innovation. Outsourcing non-core activities to experts allows in-house teams to dedicate their energy to strategic initiatives, often leading to achieving a competitive edge in a dynamic market.

Disaster Recovery and Business Continuity
Best-in-class data centers are designed to prioritize resiliency and business continuity, even in the face of unexpected disruptions. They offer comprehensive disaster recovery solutions, including advanced data replication, backup power and redundant systems, ensuring that operations remain up and running — no matter the challenge. With geographically dispersed facilities and off-site backups, these data centers increase reliability and minimize downtime. This approach provides a strong safety net against electricity outages, natural disasters or any other unforeseen events, so your business stays connected, secure and operational when it matters most.

Key Factors to Consider When Selecting an Externally Hosted Data Center

Entrusting your data systems and server infrastructure to an external provider can be challenging if you’re not aware of potential pitfalls. For a smooth transition, here are the key factors to consider when selecting a reliable data center partner.

Location and Accessibility
When selecting an external data center, consider its geographic location and proximity to key business hubs. This can have a significant impact on latency and overall network performance. Additionally, if your business operates across multiple regions, ensure the data center can accommodate those needs for seamless connectivity and efficiency.

Reliability and Uptime Guarantees
Reliability and uptime are critical when selecting a data center. Look for providers that offer robust Service Level Agreements (SLAs) with clear uptime and power guarantees, often 99.99% or higher. Make sure they have redundant systems in place, such as backup power and failover capabilities, to minimize the risk of downtime and keep your operations running smoothly even during unexpected disruptions.

What’s more, with optimized environments for servers, including temperature control and efficient networking, best-in-class data centers can enhance the performance and longevity of IT equipment. In addition, they provide the necessary infrastructure to support advanced technologies like cloud computing, big data analytics and the Internet of Things (IoT).

Security Features
When vetting a data center, robust security features are essential. Physical security should include measures like 24/7 surveillance, strict access controls and disaster preparedness plans to protect your infrastructure from unauthorized access or unforeseen events. Network security is also important, with encryption, DDoS protection and firewalls ensuring that data remains safe from cyber threats. Also, make sure the provider is compliant with industry standards and certifications to guarantee adherence to best practices for data protection and regulatory requirements.

Scalability and Future Growth
Scalability is key to supporting your business’s future growth. Look for a provider that offers the flexibility to scale resources as your needs evolve. The facility should also support emerging technologies and workloads, such as AI, ensuring your infrastructure can keep pace with innovation.

Support and Customer Service
When choosing an external data center, customer service is essential for ensuring smooth operations. Seek out providers that offer 24/7 customer support and technical assistance, so you can rest easy knowing help is always available when you need it. Dedicated account managers and engineering teams can also provide tailored solutions that align with your specific needs. A solid onboarding process and comprehensive training will help you achieve a seamless transition as you offload your data center.

How to Transition Smoothly to an Externally Hosted Data Center

Now that you’ve identified the ideal data center provider, the next step is to implement a smooth transition to the external infrastructure. Begin by understanding the entire migration process, from data transfer to system integration, and creating a clear timeline to keep things on track. To minimize disruption, establish a clear plan and communicate with all stakeholders. Building a strong relationship with your external provider is key to ensuring long-term success, and regular collaboration will enable both parties to align with your business goals. Finally, thorough testing and validation of the new setup are critical to confirm that everything is functioning as expected before fully going live.

Unlocking the Future of Your Business with Outsourced Data Center Solutions

Offloading your on-prem data center services offers a wealth of benefits, from cost savings and scalability to enhanced security and greater focus on your core business. By transitioning to an externally hosted data center, you gain access to cutting-edge technologies, reliability and the expertise of dedicated professionals — all of which help future-proof your business and drive success.

About Segra

At Segra, we believe that thriving in today’s fast-paced business environment requires a strategic approach to connectivity, continuous innovation and personalized support that truly addresses your unique needs.

Segra Data Centers offer customers a secure and stable operating environment to locate servers, storage devices and other networking hardware. Segra will work with you to secure the optimal physical space, power and network connectivity to support your business initiatives. With multiple colocation centers placed within geographically diverse locations, numerous options are available to provide resilient operating measures.

Segra’s facilities also provide the flexibility to scale up or down based on your business needs. Half rack, full rack, caged and uncaged options are available.

Additionally, our facilities are equipped with advanced physical and non-physical security measures to protect sensitive data. They are staffed and supported 24/7/365 by the Segra Network Operations Center. These measures enable businesses to comply with regulations and certifications. Annual SSAE 16, SOC 2 Type 2 audits are conducted, in addition to PCI DSS and HIPAA.

Most importantly, at Segra, we pride ourselves on delivering exceptional customer support with a team that’s ready to assist and customize solutions to take your business to the next level.

Ready to explore the possibilities? Discover how our solutions can elevate your business here.