Do In-House Data Centers Have a Future?


Increasingly, IT managers are shifting workloads to Software as a Service and cloud services. What, then, is the future of in-house data centers?

In-house data centers are definitely shrinking. IT managers are increasingly starting to utilize external hosting facilities and cloud solutions.

While certain applications and data that may need to comply with particular rules and regulations may still be hosted in-house, in general, applications and services are increasingly moving to external clouds.

From the business perspective, the move to cloud services is initiated from the bottom of the value stack. Applications outside of the company’s core business are moving to a service-based consumption model first. This preserves scarce internal resources and refocuses them on more important revenue-generating tasks.

Companies are also utilizing external clouds for scalability. When their in-house data processing infrastructure needs more horsepower, it has the ability to burst into clouds.

In-house data centers may be on the verge of extinction. New generations will consume technology in the same way we consume water and electricity today. Just like flipping a switch turns the light on, technology will be embedded into the world around us.