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Data Services Outsourcing; Better, Faster, Cheaper?

Product Type: Market Research Report
Published by: Tarifica at PBI Media LLC
Published: May 2002
Product Code: R273-0040
Description
Data Services Outsourcing; Better, Faster, Cheaper?

Should your company's capital be employed operating IT assets in competition with specialist data centre operators?

How would you know whether your own data centre is providing the best support for your organisation?

Are the measures being taken to protect the company's business and the data on which it depends, adequate?

How do you decide whether data outsourcing is right for your company? This report will help to explain the reasoning behind the move to an outsourcing solution and to understand the issues involved in making that decision. Benefits and potential problems are discussed in depth, advice is given on how to navigate the wealth of literature available from companies offering outsourcing services and the reader will gain an overall understanding of the outsourcing industry itself as well as how it relates to your own corporate needs.

Contents:

Introduction: Demystifying the Industry.

Simple explanations of the technology and the services offered

Business Drivers When Outsourcing

Commercial, legal and financial issues raised when companies outsource

Actions: How to Outsource

How to determine whether outsourcing is appropriate and select a supplier with useful checklists

SYNOPSIS:

The industry for data services outsourcing grew at a phenomenal pace fuelled by analyst interpretation and media speculation. Data centres and colocation facilities sprung up almost overnight and their sales teams ruthlessly pursued companies of all types in an attempt to convince corporate entities to outsource their data operations.

In spite of this, the data outsourcing industry is still not fully understood by the majority of people outside of the Telecoms and Internet industries. Traditional corporations still view this outsourcing trend as the preserve of Internet companies, dot.coms and start-ups and this position is not helped by reluctance on the part of IT directors to relinquish control over their data operations.

This report addresses the outsourcing issue from the corporate perspective and examines the benefits and pitfalls involved in outsourcing any part of a company IT infrastructure. Much hype surrounds the issue of cost saving in regards to outsourcing but the reality is that the decision whether to outsource should not be one based solely on cost. Outsourcing should be viewed as part of a much bigger picture including an assessment of core-competencies, security risks and personnel.

However, data outsourcing is not always the most viable option. Outsourcing will not solve underlying problems in a company, it will only be of benefit when it is used to move a properly functioning process out of the company premises. It cannot be used as a quick fix for processes that are not already working.

WHO SHOULD BUY THIS REPORT?

'Data Services Outsourcing, Better, Faster, Cheaper?' is essential reading for:

    Business leaders looking for a guide to reduce the communication gap with their IT managers, and to reduce the FUD (Fear, Uncertainty, Distrust) factor in outsourcing discussions.

    Chief Information Officers and Chief Technology Officers in all companies where the decision to outsource has not yet been taken.

    Financial managers will gain a better understanding of some of the cost implications involved in an outsourcing solution.

    Data Centre operators and Telcos will be able to better comprehend the issues and concerns facing their potential customers.

    Investors will be able to evaluate risks to their investment companies in choosing to keep operations in-house and the risks involved in outsourcing.

Table of Contents
Executive Summary
BUSINESS DRIVERS FOR DATA CENTRE OUTSOURCING
Infrastructure and Operational Issues
Finance
Business Continuity
SUPPLIER SELECTION
Location, Facilities & Services
Service Level Agreements (SLAs)
Financial Stability
Skills & Experience
ACTIONS


Preface


Introduction and Scope


Demystifying the Industry
NOMENCLATURE
CONVERGENT EVOLUTION
BUILDING BLOCKS
Space
Physical security
Power
Cooling
Network connectivity
People
Computer Hardware
Data & Software
OUTSOURCING SERVICES - DEFINITIONS
Basic Services
Leased Space
Shell and Core
Colocation
Internet Data Centres
Application Service Providers
Managed Service Providers (MSP)
Systems Integration
Additional Services
Storage and Backup
Disaster Recovery / Business Continuity
Mirroring
Ancillary Services


Business Continuity
BUSINESS CONTINUITY
THE TEETERING TECHNOLOGY TOWER
SPACE
Sub Floor Space
Ceiling Height
Floor Loading
Useable Space
Adjacency
Other points to consider
Physical security
Access
Procedure
Other points to consider
POWER
Uninterruptible Power Supply (UPS)
UPS durability
UPS reliability
The effect of expansion on UPS systems
Generators
Generator durability
Scope of supply
Physical control
Adding capacity
Generator reliability
A word on fuel
A final word on power backup systems
COOLING
Adequate Backup
Expansion
Control
NETWORK CONNECTIVITY
Spare capacity
A FINAL WORD ON BACKUP SYSTEMS
FIRE SUPPRESSION
Security
Cooling
THE EFFECT OF BUILDING SERVICES ON THE TECHNOLOGY TOWER


Actions: How to Outsource
HOW TO OUTSOURCE
THE OUTSOURCING DECISION PROCESS
Use of Consultants
The Inputs of the Decision: Why, What, How
Why
What
How
Getting to a Decision
COMMON OBJECTIONS TO OUTSOURCING
WHAT TO LOOK FOR IN AN OUTSOURCING PARTNER
Physical fit
Financial stability
Quality of processes
Experience
Development & investment
Depth of skill pool
Personnel management
Service Levels
Reliability and Downtime
Service Level Agreements
Scope
Performance measures
Access
Remedy
Partnership


Conclusions and Financial Implications
Financial Implications
10 Year Cash Flow Comparisons
Use of Capital and Shareholder Value
Core competencies


Glossary


Appendix 1: Checklists
Assessing in-house operations - example checklists
Assessing in-house operations - blank checklists
Assessing outsourcing solutions - example checklists
Assessing outsourcing solutions - blank checklists


Appendix 2 Legal Issues
Compliance & Regulatory Issues
Data protection legislation
Intellectual Property Rights
Employment Issues
Other Legal Issues to Consider
Audits
Time & Cost
Change Control Procedure
Dispute Resolution
Termination


Contributors


References

Figures
Figure 1: Evolution of the Outsourced Data Centre
Figure 2. Data Centre Building Blocks
Figure 3. The Outsourcing Service Matrix
Figure 4 The Teetering Technology Tower
Figure 5 Cable management
Figure 6 Backup generator - a job for IT?
Figure 7: Use of Activity Boundaries to Manage Outsourcing
Figure 8: The Outsourcing Decision Process
Figure 9 General Failure Rates ("The Bathtub Curve")
Figure 10 Build/Buy Cost comparisons
Figure 11 10 year cost comparison


Checklists
Current Space Checklist
Current Physical Security Checklist
Current Power Checklist
Current Cooling Checklist
Current Connectivity Checklist
Outsourcing Building Checklist
Outsourcing Power Checklist
Outsourcing Building Security Checklist
Outsourcing Environmental Control Checklist
Outsourcing Fire Suppression Checklist
Outsourcing Connectivity Checklist
Outsourcing Availability & Support Checklist
Outsourcing Procedures Checklist
Outsourcing Service Level Agreement Checklist
Ordering and More Information
Price and Delivery Options



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