‘Financial modelling’ – Rewriting the Future of Data Centers
A turtle will never outpace a hare in today’s contemporary race. Similarly, an incubating, and sedated organisation will never be able to outgrow others, when it comes down to financing, as a data centre. The entire establishment journey is not facile, to resort to. However, losing balance of your prudence will make it even more strenuous and above all, you will have to suffer.
In an Interview, Robert Heiderscheidt, CEO and President of MDI Access Inc. reveals that to proliferate and diversify, the data centers need to do a thorough strategy check. Not hesitating to put forth his perception on what seems to be the cause of the labefaction of the data centers, he adds that after creating and relishing the buzz of the cloud services, the data centers now need to migrate towards tapering their operational cost to survive in the long run. He basically insists on the ‘financial modelling’ of the industries to cater their cost tapering goals.
An astute with and experience of over 25 years in contracting the design build of the data centers, Robert further tells us that cloud services may seem to be engulfing all the lucrativeness, but when viewed keenly, they unfold the bitter truth. Cloud services require rejiggering of the entire IT synergies of a company. This in turn, tolls the employee calibre and eventually, the entire organisation pays the price. Also, the cloud services are far more gruelling than it seems virtually; and the revamping the IT architecture requires a hefty investment.
Why he thinks the financial ameliorations will work?
The gist of making it to the top, especially for the nascent data centers with requirements of more than 500kW power, aspiring to curb the market expeditiously, lies in the financial remodelling. Robert asserts that the only recourse to puff up the fading data centers, is to take to financial optimization. Decoding the rationale behind, he further asserts that OPEX reduction is the lone and apposite recourse to cater the lingering appetite for lower costs. He asserts that the financial modelling can be sought to, by holding ‘lease infrastructure’ rather than investing on personalised infrastructure. This way, by possessing a 10yr lease of 1MW, Robert exemplifies, the organisation can save up to $6 million.
Taking to the tenant system, can drastically inflate the savings rate and shave the operational expenditures. Hereunder, the organisation can operate on 70 degrees; instead of raising the temperature lines to 90 degrees or more, to shrink the operational standards and save more; the organisations can procure the liberty to operate without deteriorating their usual operational standards. He adds that buying an IT furnished infrastructure on lease, is one of such quintessential way to boost their savings on opex. Sooner or later, the organisations will have to resort to financial modelling; so why not now!
Conclusively, at the end of the day, the cardinal grail of any organisation is to cultivate versatility and meet the cost reduction lines. In today’s era of dooming data centers, more of ‘the best alternative’ is required than ‘a blend of’ bosting recourses. While a blend will only acquaint you with a competing strategy, the best recourse will help confront the opex compression targets and sustain on long term basis.