Monday, May 7, 2012

Leasing data center space? How it affects cloud service delivery



Leasing data center space: How it may affect cloud service delivery
Lynda Stadtmueller, Stratecast

Building a data center is costly and time-consuming for cloud providers and managed service providers (MSPs). Depending on the location, the cost to purchase land and construct a facility in the U.S. can be as high as $1,500 per square foot. The project timeline can easily run five years, from the decision to build the facility until services are rolled out. So it's not a surprise that more service providers are choosing to lease rather than build data center space to run their cloud services.

Although leasing presents the opportunity for considerable savings, cloud providers and MSPs must consider how leasing may affect cloud service delivery. Additionally, providers must be mindful of the growing role power consumption will play in leasing agreements.

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