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Why Data Centers Are Necessary For Enterprise Businesses?

Managed services 07/07/2020 - 13:56 by Swami Nathan

What are the Benefits of Having a Data Center

The data centers are a top priority when it comes to IT infrastructure requirements. Data centers are now seen as a primary business feature, and not as an external storage facility for information and business models. They have become important for a large business company to work very well. Unless you don’t have an effective backup plan, any interruptions in your data center operations will bring the company down to its knees. This was exemplified last year when New York data centers were destroyed by Hurricane Sandy.

What is a Data Center?

The data center is a centralized location that is rendered with computing resources and essential telecommunications – including servers, storage systems, databases, devices, access networks, software, and applications. Such issues are managed by highly skilled workers for the use and management of resources from industry, Government, and business. A few years ago, with its insane power consumption and skyrocketing operating costs, the data center was considered one of the biggest villains of the world.

The situation today, however, is a lot different. The data centers of the modern century are a lot smaller and scalable. This is the major entrepreneurial phenomenon, modular development. They’re still going through a long life cycle, but the expansion seems modular. Even as companies strive for the modularity of the mainframe system, so does the data center.

How do Data Centers Function?

As with how two computers are connected via a local network, Internet servers use network communication to relay information to web browsers. Until transmission, the data stored on a data center server is distributed into packets and sent through routers that decide the most suitable path to advance with that data.

It then uses a combination of wired and wireless networks to reach the Internet service provider of the user and at last, arrive at the device of the end user. Any time a Web address is keyed into a browser, a server will automatically request information. When the end-user needs information stored, therefore the procedure will be reversed.

Data Center Types

With how data centers are indispensable in running large companies, and even small and medium-sized businesses joining the trend, it is important to choose one to suit a business model. Data centers and business models come in various forms.

Here are four main data center types:

Managed Services Data Centers

Instead of the company, these data centers are run by a third-party company or a Managed IT Service Provider. To cut expenses, the company leases the equipment and facilities.

Cloud Data Center

Cloud data centers are a type of off-premises data center. Amazon Web Services (AWS), Microsoft (Azure), and IBM Cloud are the most commonly used cloud computing systems.

Enterprise Data Centers

Enterprise data centers are set up, managed, and operated by corporations. Such data centers are run for one reason and this streamlined service is for their end-user customers. Enterprise data centers also find themselves within corporate structures.

Colocation Data Centers

Colocation data centers more often referred to as “colo” an organization that leases space within a data center, they do not own and are located outside the premises of the company. Among others, the colocation data center offers facilities such as the building itself, cooling, bandwidth, and security. Also, the company manufactures and maintains the components which include servers, storage systems, and firewalls for security.

Why Data Centers are Necessary for Enterprise Businesses?

Data centers have gone beyond only being supplementary storage facilities. They have emerged as a key parameter in the market. Here’s why corporate companies need data centers.

Data Storage and Management

An enterprise’s data storage needs are steadily increasing and keeping pace with the demand surge, data centers continue to push the horizons of tangible capacity. Data centers are developing creative methods of data processing and storage that instigate more businesses to branch out into the use of cloud computing. Both data centers and companies are focused on meeting data storage requirements which incorporate both cloud and physical storage capabilities. This technology shift is at the cusp of driving M&A activities leading to an exponential growth in data collection and collaboration which further enhances the need for data storage.

Better Growth Opportunities

Upon realizing the vital role data plays in the growth of their businesses, most organizations adopt data center solutions. Data centers are taking both the business and technology realm with their development. Yet businesses are becoming increasingly aware of running their business from the possibility of recruiting more employees to leverage high demand yet growth opportunities. Your company will exploit the size, with the assistance of a professional data center provider, to dominate the market. All you need is a professional provider who can provide you with a comprehensive infrastructure to track and govern your data by automating and integrating Data Center management.

Reduced Barriers

Companies have so many aspects and it’s very difficult to handle every part of the industry. With the common goal being the customer, each enterprise segment shares the same business processes, ideologies, investment plans, and capital spending. However, the company is also distributed in terms of location, goods, and services because of its enterprise existence. This results in a lack of customer engagement across the company’s various operations. You will reduce barriers to internal operations that impact customer service with an effective data center solution for enterprise business. Managed hosting services provided by an experienced provider, with easy data storage and flow, can help you improve your ability to engage the customer during your operations.


Data security has become the top priority of any company given the sheer amount of data collection and transactions in today’s competitive climate. It has become imperative for each organization to put in place efficient systems which are not only frequently modified but also, constantly monitored. Constant monitoring of the systems helps you to maintain the protection, as potential threats and attacks are identified as soon as possible. For this purpose, businesses rely on third-party data center solutions with experience and monitoring processes to identify threats and violations within the appropriate timeline to be able to deal efficiently with them. Many vendors provide multi-tier network configurations to efficiently protect enterprise valuable data. In addition to data technology security, vendors also emphasize data center physical protection, ensuring control, access management, intrusion alarms, and physical security systems. In addition, in times of environmental disasters, quick recovery processes and data retrieval in the shortest turnaround period are also provided.

Consolidated Leadership

As an organization, you have to understand the ability to lead, operate, and maintain your company. Therefore, you should find the enterprise level of infrastructure provided by a potential data center service that helps your enterprise in different parts of the business with lesser improvement. This results in unified leadership, centralized management, and a consistent approach to governance to enable improved business decision-making for the betterment of the entire company.

Higher Margins

Increasingly, businesses understand the rising value of a data center. Investing in a tactical data center solution will help companies access cost scale, data security, and efficiencies in service. Data center service providers allow companies to customize solutions according to local requirements without sacrificing the core business process elementary course. For market growth, companies have to consider additional capital. But with data center solutions, you can make prompt and cost-effective use of the technical resources. Additionally, if you require fewer systems or less storage, your provider will simply cut down on implementation as required. This is one of the key reasons why businesses go for vendors selling services, with costs incurred by their use of the service.

The only way to protect what you’ve worked hard to build is to be vigilant when it comes to cybersecurity. If you’d like to know more about how your business can benefit from managed services, just give us a call, we are here to help.

A data center is a network of computing and storage resources enabling the delivery of shared software applications and data.