Organizations are increasingly relocating their IT infrastructure to proficiently managed data centers because of the marginal CAPEX cost, maximum up time and maximum resiliency. This has unexpectedly increased demand for data centers in India. The data centers service providers are concocting strategies to meet this growing demand with huge investments in development and maintenance of state-of-the-art infrastructure.

According to Gartner, the key growth driver behind sudden increase in demand of data center is the continuing investment in large captive data centers in conjunction with the capacity growth evidenced within the data center provider space. 

Through this post, I would like to highlight the key drivers that have made data centers in  a most lucrative proposition for the businesses across the globe.

Do you know that the rise in demand for data center services has suddenly picked up? The key reason behind this is that businesses now completely want to focus on core competency and their respective niche markets.Simply, leave the IT on us on to the service provider. 

The huge upfront cost related to IT infrastructure, and the human resource to manage it has been a niggling overhead that eats into any enterprise profit margins. And this is a recurring investment because of technology outmodedness. When a business grows and expands eventually, it has to make additional investments in IT infrastructure. Adding furthermore to huge cost of maintenance and the skills required to manage the IT infrastructure (salaries for staff are another huge overhead).

It has been proven that hosting an organization's IT infrastructure in a meticulously managed data center (where in huge investment resources like power are shared), and in a consolidated instead of dispersed, works out to be more economical in the long run. 

Because of the scale of the business and the pooled services model, data center service providers are all geared up to make huge investments in power and cooling infrastructure. Chiller units, gigantic generators, towering banks of batteries and UPS units, Power Distribution Units (PDUs) and specific computer room air conditioning units (CRAC) call for investments touching to several crores. This is practically unrealistic for most businesses. Furthermore, it is not empirical to run a data center in a standard office building. 

Another driver is the demand for managed hosting solutions. This is appealing business because of huge cost savings. The data center provider will rent an entire server to one client who will have comprehensive control over his or her rented server. Management (monitoring, updates, application management, etc.) are usually delivered to the customers as add-on services. This is a much feasible option as it is economical than deploying an in-house server, spending in power and cooling, and having a round-the-clock in-house supervisor - or an IT team. 

Last, but not the least option is co-location solution. A client can even position his own server in highly resilient environment of data center and make use of collective and redundant resources, such as power and HVAC. Therefore, the customer doesn't have to incur upfront cost for such resources. Data centers also provide locked cages to keep the servers of their clients,stringently monitored by IP cameras at the client's end. Client can also visit the site and do server management from a cubicle. 


The rising demand for data centers is being driven by enterprises who are seeking to leverage the cost benefits. Hence, embrace managed data center solution and drive exceptional value for your business.