Why Many Hyperscalers Are Choosing to Outsource IT Infrastructure Over Building Their Own

The world’s seemingly unquenchable thirst for data continues to surge and with it the need for best-in-class data centers and other providers to support hyperscaler growth. Fueled by rising internet use, growing digital economies and expanding ecommerce worldwide, many businesses are increasingly seeking hyperscale data center operators, cloud providers and ISPs that can move their huge volumes of data around the globe.

This is particularly true in the rapidly growing Asia-Pacific market, where APAC countries now account for half of the world’s internet users and nearly half of its global investments. Upward growth in data center construction goes hand-in-hand with the region’s increasing digital use, according to industry research. In fact, the APAC data center construction market is expected to reach more than $24 billion by 2028 from $15 billion in 2022, according to a recent report from Research and Markets. The region is now one of the fastest growing data center markets in the world.

In response to the skyrocketing digital growth, APAC data center providers, including BDx, are ramping up their colocation facilities and digital infrastructure to meet the increasing needs of hyperscalers. At the same time, outsourcing IT infrastructure management is also on the rise. According to a survey of global IT decision-makers by Forrester research, nearly 60% of organizations are looking to outsource or partner with a provider to modernize their IT infrastructure. What underlies this trend?

Outsourcing Rises as Hyperscalers Consider its Many Strategic Advantages

Strategic and Easier Access to New Markets – The most important advantage of IT infrastructure outsourcing for hyperscalers is immediate entry and access into new markets via colocation in strategically located data centers. The best of such data centers will offer proximity to key business hubs and a dense carrier neutral interconnection ecosystem with access to network providers and subsea cable landing stations. Such hyperscale data centers offer high-speed, low latency data transmission, edge connectivity, price transparency, flexible contracts and the expanded capacity to scale quickly.

Cost Effectiveness – It’s not hard to see why outsourcing is growing in popularity among hyperscalers, considering its many benefits – one of the primary being cost effectiveness. Building and maintaining an enterprise-level data center can be a daunting task that is extremely capital intensive. Not only would the company need to invest in physical space but also expensive hardware, specialized IT staff and extensive power and other operating costs.

In addition, there’s the issue of timing. Building a facility from the ground up can take years and hyperscalers –many of them anxious to enter emerging markets – don’t have the luxury of time to get their operations up and running. By partnering with an existing data center provider, the hyperscaler can get immediate access to massive data interconnectivity capabilities.

Staff Augmentation – Ensuring an efficient, cost-effective and secure IT infrastructure is a complex process and requires specialized skills. Many organizations find that their internal IT teams don’t have the right skillset to handle ongoing data migration, maintenance and management. By outsourcing some or all of your IT environment, organizations gain access to highly skilled engineers, hardware specialists, software technicians and other experts that can serve as an extension of their internal IT team. Outsourcing with a quality data center provider ensures operational excellence while supplementing your in-house talent as little or as much as you need.

Savings from Economies of Scale – Leasing IT space from an existing data center, known as colocation, offers many benefits, including cost savings due to sharing of operational costs among multiple tenants. For instance, energy costs can be significantly reduced when spread over multiple organizations in a multi-tenant data center. Colocation also gives customers access to greater bandwidth at lower cost by benefiting from the facility’s pooled resources. In addition, top-of-the-line colocation providers invest in infrastructure advancements that enhance energy efficiency, which helps to stabilize costs for everyone.

Easier Scalability – Turning to data center colocation allows organizations much greater flexibility to expand or contract IT services. Many data centers allow organizations to adjust space requirements as needed, enabling companies to pay for what they are using today or expand their space when greater capacity is required. This eliminates paying for idle capacity and avoids the expensive prospect of building on additional space at a company’s own facilities.

Enhanced Security – Colocation data centers, in general, offer a higher level of physical and cyber security than individual businesses. At quality providers, several layers of infrastructure security are in place to maintain operations in the event of a power outage. Redundancy is built in across all platforms, solutions, and employee responsibilities. At the same time, multiple layers of physical security, such as limited building entrance points, key-card access to private areas, 24/7 security staff, and automated locking doors ensure that systems are safe and only accessible to qualified personnel. Additionally, redundant power sources, power feeds and disaster recovery sites help to avoid outages and to ensure fast recovery and excellent performance, while carefully monitored cooling systems make sure that proper temperatures are maintained for sensitive computer equipment.

High Quality, Accessible 24/7/365 Support – At respected data centers, customers enjoy greater access to support services. The best operators offer flexible support along with a personal touch, consultative approach, and a fast response to customer needs.

Learn How BDX Can Help

At BDx, our state-of-the-art data center facilities and services are designed to enable transformation, empowering hyperscalers to stay competitive and connected. From Singapore to Indonesia and the many emerging markets in between, our purpose-built data centers are more than prepared to meet tomorrow’s connectivity needs.

To learn more about BDx, contact a #BDxpert today.