July 07 2021

In-House vs Outsourced Data Center Solutions – The Better Choice?

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  • 1104 days ago

The importance of data management has increased significantly over the last few years. It goes without saying, data happens to be one of the critical assets of a business. However, the fact that it poses many challenges for the organization pertaining to its management while ensuring compliance at the same time cannot be denied either.

This enhanced dependency on the data has resulted in an increase in the need for data center solutions. Now, companies here have two choices in this regard. They can either have an in-house data center solution or opt for outsourcing. Both these options come with their own specific set of pros and cons. Let’s take a look at them:

In House Data Center

Commonly known as a server room, it is an on-site facility managed by the IT department of the organization. An in-house data center, as the name specifies, is part of the company’s premises and fulfills all its data-related requirements.

Pros of In-House Data Center Solutions

Tighter Security

When you have an in-house data center, you are in charge of the security. And it’s certain that no company would like to compromise on this aspect. Usually, server rooms are under strict security, with no unauthorized personnel allowed there.

Enhanced Control

In continuation with the previous point, an in-house data center offers enhanced control. The reason is the same – its location within the company’s premises. This way, when there’s an issue, it can be fixed immediately as you wouldn’t have to contact the company you have outsourced the services to.
Furthermore, if you want to make changes to your data center, you can do it rather conveniently, provided you have an IT team comprising qualified, experienced and professional experts on board.


While it may come across as a surprise to some, having a data center can prove to be cost-effective in the long run. The cost of setting up a server room is certainly high, but it’s not recurring. The only time you will have to spend money on a data center is when you want to expand it or if the server has malfunctioned. Otherwise, it requires a one-time investment that can provide your company with enhanced utility for a long time.

Cons of In-House Data Center Solutions

Requires a Large Upfront Investment

We have just discussed how data centers can prove to be cost-effective. We also added that you would need a one-time investment to set up a server room. Having said that, it’s important to know that it’s a big investment. You would need servers, server racks, cooling system, cabling solution, security systems, to name a few, for setting up a data center in your company.

Due to its high cost, it is mostly considered a suitable option for large enterprises only.

Can be Complex to Manage

An in-house data center can be quite complex to manage. Even if there’s a minor problem, it can get aggravated if handled by an inexperienced individual. Suffice it to say, you cannot give this responsibility to unskilled personnel to manage this important part of your organization; you would need highly-trained and IT experts for this purpose.

Requires Space to be Expanded in the Future

If you ever intend to extend the data center in your company, you would need more space. This can be difficult to manage since most companies, particularly small and mid-sized enterprises, already have a limited area for their operations.

Outsource Data Center Solutions

When you outsource data center services, you hand over this responsibility to another company whose primary function is to only manage data and keep it secure. They have large servers in temperature-controlled facilities where data is protected using advanced layers of security.

Pros of Outsourcing Data Center Solutions

No Setup Cost Involved

As stated above, setting up a data center requires a huge investment. There’s no such requirement when you’re outsourcing services. You will just have to pay the monthly fee, depending on the contract, and your data will be managed effectively.

In addition to that, when you hire data center services, you don’t have to bear the operational costs that come with having an in-house server room.

Services of Professionals

Such companies usually hire the best experts in the field. They have to manage the data of different companies. Since negligence in this regard can cost them the contract, they have highly professional and experienced IT experts on board who can resolve any prevalent issue and ensure the smooth running of servers.

Suitable for Every Type of Business

Outsourcing data center solutions is a suitable option for every business, regardless of its size, nature and scale. Small and mid-sized businesses can particularly benefit from this option as they won’t have to worry about managing a huge investment needed for setting up a server room.

Cons of Outsourcing Data Center Solutions

Lack of Control

The biggest issue with outsourcing data center solutions is that you don’t have control over the facility. The reason? It isn’t located in your workplace.

Incompetency of the Company/Supplier

The selection of the company to whom you are outsourcing data center solutions holds crucial importance. Hiring an incompetent company will bring nothing but trouble to your business. There will be frequent server-related issues, which, in turn, will result in difficulty in accessing the data. On the other hand, if you have hired a competent and reliable company, you can expect to have smooth and uninterrupted data access.

Final Thoughts

In a nutshell, it all boils down to your business’s specific requirements. For some companies, having an in-house data center is a better idea, while for others, outsourcing makes for a suitable choice. If you are opting for the former option, make sure to get supplies from a reputable and reliable company, such as Malco Technologies. You can contact us for the best data center solutions in the UAE.