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How Companies Choose a Location for Their Data Center

By: Blair Felter on June 12, 2017

The number of businesses considering third-party data centers will continue to grow. According to Cisco’s Global Cloud Index (GCI), 92% of workloads will be processed in cloud-centric data centers by 2020. Additionally, cloud computing is becoming more attractive and affordable, and more devices are using the internet than ever before. Predictions from Cisco’s GCI state that “traffic from wireless and mobile devices will account for two-thirds of total IP traffic by 2020.”

To address these trends, there will have to be an increase of data centers in more markets. However, the issue of choosing the optimal data center location remains a challenge for many businesses. To ensure the best possible data center is selected, companies evaluate three primary criteria: interconnectivity, reliability and disaster recovery.Interconnectivity

Interconnectivity between separate data center sites enables them to work together, share resources and pass workloads between one another. Many companies prefer data centers that offer different geographical areas they need to reach. This interconnection provides the ability to leverage various user populations with high reliability and minimal latency. Furthermore, carrier-neutrality is one of the most important considerations for businesses exploring the option of data centers. Carrier-agnostic data centers are not restricted to any one service provider, and they are able to provide the flexibility required to cater to unique business goals.


Reliability is another important criterion that companies consider before choosing a location for their data center. As the reliance on mission-critical IT infrastructure increases, businesses need better continuity. This need results in a growing demand for consistency of service and infrastructure. Beyond convenience of physical location, businesses are increasingly scrutinizing a data center’s standard operating and maintenance processes. Doing so ensures a service provider lives and breathes IT issues similar to those companies face every day.

Disaster Recovery

While disaster recovery isn’t exactly a new concept, it has taken on a new meaning in today’s enterprise landscape. Beyond the traditional, self-explanatory definition, there is more focus on prevention and proactivity. For example, more businesses are considering data centers that implement RFID technology because of a demand for physical asset tracking as part of a “disaster recovery” plan. The ability to proactively monitor and address potential disaster situations is far more valuable to businesses than reactive recovery processes.

While some enterprises still prefer to be in close proximity to their data center, there are other important factors in the location choice. Interconnectivity, reliability and disaster recovery are three major considerations that companies factor into their choice. To ensure selection of the best possible data center to meet business objectives, strategic consideration beyond physical location is required.

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