Comments on: Outsource IT – The Numbers Back it Up http://blog.softlayer.com/2008/outsource-it-%e2%80%93-the-numbers-back-it-up/ A Behind the Scenes Look at the Best Hosting Provider in the World Thu, 23 May 2013 19:20:44 +0000 hourly 1 http://wordpress.org/?v=3.4.1 By: Jeff at rackAID http://blog.softlayer.com/2008/outsource-it-%e2%80%93-the-numbers-back-it-up/comment-page-1/#comment-421 Jeff at rackAID Sun, 04 May 2008 23:24:17 +0000 http://theinnerlayer.softlayer.com/?p=128#comment-421 Several years ago I ran a similar analysis and found a break even point to be around 6-7 servers when comparing using a dedicated server provider vs. co-location. This was just for a single site installation. I am sure costs would increase when you have 2 locations due to all of the network gear required. There are also many hidden benefits about outsourcing infrastructure, especially if you have minimal needs or are just starting up. I've dealt with many start-ups that enter into full rack co-location agreements, load the rack with top-end hardware with expectations of growing quickly. However, when that growth does not happen or development take longer than expected the high overhead starts to takes it toll. With turn-key infrastructure, you could launch a new service with minimal upfront costs and grow and contract as needed on-demand. I find this to be the most powerful feature of dedicated server providers like SoftLayer and others. Lastly, there's a lot of intangible benefit to simply not worrying about your IT infrastructure. When that server dies at 3AM, you don't have to worry about replacing it. That alone can be worth a bundle. Several years ago I ran a similar analysis and found a break even point to be around 6-7 servers when comparing using a dedicated server provider vs. co-location. This was just for a single site installation. I am sure costs would increase when you have 2 locations due to all of the network gear required.

There are also many hidden benefits about outsourcing infrastructure, especially if you have minimal needs or are just starting up. I’ve dealt with many start-ups that enter into full rack co-location agreements, load the rack with top-end hardware with expectations of growing quickly. However, when that growth does not happen or development take longer than expected the high overhead starts to takes it toll. With turn-key infrastructure, you could launch a new service with minimal upfront costs and grow and contract as needed on-demand. I find this to be the most powerful feature of dedicated server providers like SoftLayer and others.

Lastly, there’s a lot of intangible benefit to simply not worrying about your IT infrastructure. When that server dies at 3AM, you don’t have to worry about replacing it. That alone can be worth a bundle.

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