With upwards of 80 percent of enterprises and 63 percent of small and medium sized businesses investing in big data projects over recent years, and budgets of $1.6 million to $7.4 million, the question of data storage is at the forefront of many companies’ minds. One decision facing such companies as they look to store data is the choice between internal server rooms or external data centers. Here are some key components to consider as you make the data storage decision.
A data center is an entire building dedicated and designed for the purpose of storing, processing, or distributing large quantities of data. These centers are highly specialized and designed for the purpose of supporting computing hardware.
Data centers are highly reliable and users are less likely to experience network outages, as data centers come heavily equipped with redundant safety measures. For instance, many data centers feature multiple backup generators, smoke detectors, temperature sensors, and several power grid sectors. In addition, many data centers may offer users the option to choose maintenance downtimes and the hardware used for storage of a particular company’s data.
However, costs associated with data centers can be surprisingly high. Power costs, initial subscription, and setup fees are all cost factors that can intimidate potential users. In addition, companies may face a loss of control over data management during the move to offsite data storage, becoming dependent on data centers for maintenance, security, and uptime.
A server room is any room dedicated to the purpose of storing, powering, and operating computer servers through computer hardware. Common in modern office buildings, server rooms are considered the smaller siblings of data center facilities.
Server rooms are a smart choice for companies with highly specialized needs, and those with large or complicated systems or systems with a diverse set of applications may benefit from an onsite server. Local server rooms allow companies to manage their own facilities and modify data systems to accommodate internal needs.
However, internal management of data storage poses significant challenges for a company that has a different primary focus. Maintenance of a server room may divert an IT team’s attention from initiatives directly related to business growth. Server rooms are also less equipped to deal with unforeseen disasters such as theft or fire. Additionally, companies with little foresight of future growth may find themselves with a data storage system that’s more powerful than necessary, or one that isn’t equipped to grow alongside their business.
Data Storage Vendors
Data storage vendors received $2.1 billion in private funding in 2019, according to SearchStorage.com analysis of data from websites that track venture funding. Not surprisingly, startups in cloud backup, data management and ultrafast scale-out flash continue to attract greater interest from private investors.
Six private data storage vendors closed funding rounds over more than $100 million in 2019, all in the backup/cloud sector. It’s a stretch to call most of these startups — all but one of the companies have been selling products for years.
A few vendors with disruptive storage hardware also got decent chunks of money to build out arrays and storage systems, although these rounds were much smaller than the data protection vendors received.
According to a recent report by PwC/ CB Insights MoneyTree, 213 U.S.-based companies closed funding rounds of at least $100 million last year. The report pegged overall funding for U.S. companies at nearly $108 billion, down 9% year on year but well above the $79 billion total from 2017.
Despite talk of a slowing global economy, data growth is expected to accelerate for years to come. And as companies mine new intelligence from older data, data centers need more storage and better management than ever. The funding is flowing more to vendors that manage that data than to systems that store it.
Making the choice between a data center and a server room isn’t simple, neither is finding the right data storage vendor. Silverback Data Center Solutions understands the needs, budget, and growth potential of your company — and can help find a solution that fits.