The Benefits of Data Centers and 6 Businesses That Rely on Them

A private data center is less expensive. However, it’s more susceptible to breaches and more cumbersome to operate than an onsite data center. It, however, has the advantages of being highly secure, smart, and adaptable. For certain businesses, data centers are the best IT infrastructure solution. Here are six businesses that need data centers.

1. Analysis

Business analysis services are among the businesses that need data centers. To compete in today’s corporate environment, businesses have to try very hard to succeed and avoid being left behind. Making decisions supported by trustworthy, actionable information is the key to success, which brings us to the reason business analysis is essential for any organization. This process involves gaining insights into a business based on the gathered data. Data centers offer an effective and safe solution for storing such data. They allow business analysis services to access this data whenever they need it.

2. Manufacturing

Manufacturing is among the businesses that need data centers. With over 48% of the worldwide market share, the manufacturing sector, including fabricators, is the world’s top producer of enterprise data. Data is gathered by endpoints, which include sensors, actuators, and PLCs, devices for real-time data, as part of the Industrial Internet of Things (IIoT). After a machine is connected and starts to receive data, the data must go somewhere for processing and analysis.

Edge computing, which involves processing data close to the point of collection, is one method for doing it. The term ‘edge’ refers to the edge of the network (access points like switches, gateways, routers, etc.). In terms of size, it can be a cabinet with servers, a regional edge, or a whole data center. The closeness of an edge solution to either its end users or its data source is what distinguishes it from other solutions.

Because it offers data privacy, reduced bandwidth use, and low latency, edge computing is a great approach to getting started with data analytics in manufacturing. Because the data doesn’t have to travel a long distance from its source, large amounts of data may be processed and shown in real time. Data protection may be enhanced by adding physical security to the area surrounding the edge devices themselves. An edge data center is more than just a place to house servers; it helps companies make smarter business decisions.

With the help of edge computing, operators may use data to track the performance of assets, such as vibration, speed, and temperature. For example, as data is processed and evaluated at the edge, the system may detect a part’s temperature rising, indicating that the part might fail earlier than anticipated. This will allow operators to plan maintenance before it fails. Powering edge solutions in the case of manufacturing call for specific considerations. For example, an uninterruptible power supply facilitates power continuity, such as in production line equipment. Without an uninterruptible power supply, an edge center would be rendered worthless during a brownout or blackout.

Prices vary because each data center is tailored to the unique requirements of a manufacturer. For example, the demands of a metal fabrication company vary from those of product manufacturers. It costs around $5,000 for a single cabinet with basic power and cooling. According to Rourke, the cost for most firms who need one or two cabinets might reach $30,000 depending on the density of needs. From this point, prices increase based on how complicated the application is.

3. Finance and Accounting

Financing and accounting businesses are among the businesses that need data centers. Accounting companies offer a wide range of services, making them essential partners for business owners. These services support business growth by helping organizations stay financially organized and ensure they comply with tax laws.

Accounting businesses, however, differ from one another, and not all of them offer the same services. For example, pension plan audit accountants will have different data needs than bookkeeping firms, and even with these variations, accounting firms can benefit from the use of data centers. It allows them to safely store, process, and access data as needed.

A finance company makes loans to both businesses and individuals. A finance firm, unlike a bank, doesn’t receive customer cash deposits and doesn’t offer common banking services such as checking accounts. These businesses make a profit through interest rates (the fees charged for borrowing the money) on their loans. Their interest rates are typically higher than the rates imposed by banks.

Most finance businesses provide loans to customers who are unable to get loans from banks due to poor credit history (the history of an individual’s repayments to the organizations who loaned them in the past). Such borrowers provide collateral to finance companies to secure loans. This may be a personal asset or any other security of equal value). To put it simply, if Peter wants to establish a house painting business and needs a $5,000 loan from a finance company, the finance company may ask him to put up his pickup truck as collateral. In case Peter defaults on the loan, the financing firm will seize his pickup. To facilitate the storing of a lender’s information, disbursement of funds, and follow-up, a data center is a valuable tool that facilitates smooth operations for finance companies.

4. Real Estate

Real estate agencies are among the businesses that need data centers. Big data is becoming more prominent in the real estate market. Real estate agents use data to more precisely ascertain a building’s age and condition and gather accurate details on the renovations and redesigns that have already been done to it. As a result, there are fewer questions regarding the property and its potential, lowering the risk for buyers and investors. This data needs to be stored somewhere safe and accessible, and this is where data centers come in. They allow real estate agencies to store, process, and access data when needed.

5. Attorneys and Law Offices

Attorneys and law offices are also among the businesses that need data centers. Most law firms gather personal data about prospective clients. Such information is often used to guide marketing efforts, prepare pitches, customize replies to requests for proposals, or target new customers. Additionally, they compile private data on their current clients or on those who work for them. Law firms often use this information for a number of objectives. These include managing conflicts, issuing invoices, collecting unpaid invoices, transmitting marketing, and corresponding with clients regarding projects and engagements. This data needs to be stored somewhere, and that place is known as a data center, which keeps the data safe and allows a lawyer to access information whenever they need it.

6. Therapy and Medical Services

Medical services are other businesses that need data centers. The use of data in the health sector allows medical professionals and administrators to pinpoint areas of concern or improvement. With this information, they’re able to put in the effort needed to improve the overall standard of patients’ experience by addressing shortcomings in patient care. This promotes better strategic planning efforts, improved patient care, and more efficient resource use. Whether a facility offers rehabilitation services or is primarily a physical therapy service, data centers are a great solution for the reliable and safe storage of this data.

Benefits of Data Centers For Businesses

Data centers are vital in the industrial sector. The demand for data and power is growing as technology continues to transform how firms conduct business. Most businesses often find the considerable growth in resources too much to manage internally or with the current infrastructure. To keep up with the rising demand, additional staff and work hours are needed. By making use of a data center, a business can outsource its power needs. Data centers are beneficial for businesses in several ways, such as

1. Cutting Costs

According to analysts, the U.S. economy suffers losses of $200 billion to $570 billion annually as a result of power outages and other disruptions. Data centers can easily eliminate part of this loss through a system that, unlike surge suppressors and generators, can survive poor power conditions.

Starting up and maintaining generators and surge suppressors consumes a substantial amount of energy. Additionally, they’re not impervious to power surges and other electrical inconveniences. These factors have partly contributed to the high rise in power costs.

Power and cooling costs have dramatically risen in recent years. The primary goal of data center managers is to ensure maximum availability while minimizing power costs. High-efficiency uninterrupted power supply systems are helpful in achieving this. Products that weren’t even an option a few years ago are now available.

2. Protecting Power

A power crisis or failure has less impact on a business that has outsourced data control. A business that supplies its own power can suffer great losses from technological and natural power outages since onsite servers are more vulnerable to broadband problems. A power outage lasting as little as 1/50 of a second can set off events that may prevent IT equipment from functioning for up to 15 minutes.

In comparison to conventional data storage methods, data centers are generally more secure. Today, the issues and risks related to data loss are getting out of hand. Modern network devices, servers, and storage systems feature components that are so tiny that they struggle and sometimes malfunction under power conditions that older technology could easily withstand.

3. Improving Efficiency

By law, an electrical power supply can vary significantly enough to pose serious issues for IT equipment. Voltage can lawfully range from 5.7% to 8.3% under absolute specifications according to current U.S. standards. As a result, utility providers that advertise 208 volts may legitimately supply voltages of between 191 to 220 volts.

With stringent regulations and monitoring procedures, a data center eliminates the ambiguity around power levels. On top of that, utility power isn’t always clean. While some businesses may have their own power supply, key hubs are frequently supplied by public utilities. The fact that so many businesses rely on the same power grid slows IT operations. Due to data centers’ privatization of power, businesses that use them will in the future enjoy major improvements in technological speed and functionality.

4. Optimum Security

Whether you’re searching for unmanaged or managed collocation services, data centers facilitate a secure environment, rack space, and internet access to keep your business operational in the event that something unusual happens to your business server. Data centers can be used to keep your data private if the success of your business depends on your ability to adhere to local, state, or federal privacy laws. A business that has several data centers spread out geographically provides even greater security and stability for a business.

5. Improved Access to the Internet

If your organization depends on having round-the-clock access to your operations and data, a data center is a necessity. It ensures always-on access to data. Additionally, having multiple internet connections and access points provides a higher level of redundancy and guarantees the ongoing availability of your business’s data.

6. Maintaining a Competitive Edge

Data analytics are now an essential part of every company’s strategy, and computing resources are necessary to extract vital information from data. Using a collocation or MSP leaves your small business with more computing capabilities and the ability to use the same ‘big data’ analytics as larger corporations, elevating your company to the same level of competitiveness.

7. Scalability

Today, a staggering amount of data is being churned out by the second. Every individual on earth was expected to produce 1.7 MB of data every second by the year 2020. When you think about it, that’s astounding. Your company’s data requirements will only continue to grow. Scalability isn’t a problem when using a data service center. These facilities allow you to scale gradually as your business grows.

While there are certain businesses that need data centers more than others, every company, no matter how big or small, must either run its own data center or outsource its data needs. This might entail paying for cloud-based services, leasing space from a colocation provider, or delegating tasks to a managed service provider (MSP). If your business falls under the businesses that need data centers, give us a call today to speak to one of our professionals.

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