Data center consolidation is one of the most fundamental ways to lower the cost of IT operations. In organizations with multiple data centers, data center spending accounts for 22 percent of all IT costs, according to Computer Economics’ Data Center Spending Benchmarks and the Case for Consolidation. For organizations with a single data center, only 20 percent of the IT spending is on data center operations and technology. In other words, companies with a single data center spend 10 percent less on data center operations than those with multiple data centers. A savings of 10 percent on data center operations could translate into millions of dollars for most large organizations.
Combining multiple data centers into a single facility is a viable strategy for cutting costs while improving service levels. In addition, organizations are reducing capacity and switching to hosting companies and cloud services to meet their needs for backup, redundancy and additional capacity.
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