What if the data center was more consumption-based, more on-demand – more like the cloud? Then cloud providers could take advantage of all the benefits of colocation without all the traditional risks. Here, learn how a cloud-like data center model mitigates risk, and what it looks like.
We live in an on-demand, pay-for-use world. A cloud world. For example: HBO offers a streaming service because Netflix gave us a new way to watch TV, and we came to expect the same from other entertainment providers. The world’s largest legacy software provider paid billions for a SaaS company because Salesforce taught us that we can pay just for what we use, and we came to expect the same from other software providers. Software ate the world, and the cloud ate the software.
At the same time that the rise of the cloud has created tremendous opportunities for consumers and providers alike, it has uncovered fundamental challenges as well. For one: the fact that cloud providers are wholly reliant on the data center, yet the traditional data center financial model is completely mis-aligned with the cloud financial model. Cloud providers earn revenue only when customers sign up for their service and like it enough to continue paying for it every month. Yet most data centers require a seven-year (or longer), multi-million dollar commitment predicated on a forecast of the amount of IT capacity that will be needed.
A cloud-like data center model mitigates risk
For cloud service providers who want to maintain their own IT infrastructure under their own control, a cloud-like data center model enables the benefits of colocation without the traditional risks.
A cloud-like data center model allows you to:
- Align expense with revenue. One feature of a cloud-like data center is consumption-based pricing, which allows you to commit to space but only pay for power provisioned and used. When you pay on a consumption-basis, you can align your data center expenses to your revenue. That mitigates the risk of committing to data center space not getting the revenue to support it. Ultimately: when you can dramatically reduce your fixed costs and dynamically scale your power costs in alignment with revenue then you can maximize the profit that you can put back in the business and grow.
- Scale when you need to. It’s the cloud startup’s worst nightmare: a famous tech blogger has written about your service and the post has gone viral. Traffic to your site is up 10000%. You’ve rerouted all the power to your servers. You’re probably going to trip a breaker, if the garage doesn’t catch on fire first. The cloud-like data center mitigates the risk of not being able to meet customer demand when it does come – which it will, probably very fast. In a cloud-like data center you have transparency into the capacity you have and the capacity you’re utilizing so you can stay one step ahead of capacity needs. When it’s time, you can scale in right-sized increments very quickly.
- Stay up. When you’re selling a cloud service, uptime is everything. So the data center for cloud providers has to be reliable, with service that gives you the confidence to in turn promise a 100% uptime SLA to your own customers.
In short, a cloud-like data center is truly aligned to your business, giving you more control for less money.
What does a cloud-like data center look like?
At Aligned Data Centers, the cloud-like data center is characterized by:
- A pricing model that is, like the cloud, consumption-based. A lower upfront commitment enables you to deploy capital for the data center only when it’s needed, and keep the rest of your capital available to grow your business.
- Ultra-efficient power and cooling infrastructure delivers hyperscale-level efficiency, keeping costs down.
- A capacity planning dashboard with predictive analytics capabilities enables you to see when you need new capacity. Plug-and-play infrastructure and a rapidly scalable and repeatable model allow you to add that new capacity easily and quickly.
- Power is dynamically provisioned and power densities can scale within your existing footprint so you can often meet the demands of new business opportunities within your existing footprint.
- Cooling infrastructure that has been called “the most reliable data center cooling infrastructure on the market” (99.9999% reliability). So you get a 100% uptime SLA.
The cloud has been the driver of tremendous innovation in the last decade, and no doubt will continue to be. We’re proud to play a role by helping you align expense with revenue, scale when you need to, and make good on 100% uptime SLAs to your customers.
Interested in exploring our cloud-like data centers? Schedule a tour