The trend of excess capacity in the data center is encouraging business leaders to consider how it could be monetised.
That’s the word according to Gartner, who says whether it is the result of virtualisation, application migration or other business events, many business leaders are considering leasing or providing the space as a colocation offering.
Leasing spare capacity effectively requires that the IT organisation becomes a colocation service provider, involving functions and roles completely foreign to it and carrying significant financial and legal risk, Gartner says.
“Business leaders are nonetheless asking their IT organisations to determine how such services could be packaged, and what revenue the business can expect from them.”
Ahead of the Gartner Data Center, Infrastructure & Operations Management Summit 2016, Bob Gill, research director at Gartner, suggests how IT executives can prepare for such requests.
“Leasing data center space or offering colocation of third-party equipment may involve establishing a completely new line of business. Most enterprises will be ill-equipped to do this,” says Gill.
“Enterprise risk assessment must consider all legal risks as well as potential impacts on reputation, security, operations and the organisation. These must be understood and addressed before a business plan is considered,” he explains.
“The pricing of a packaged service must not only cover all costs and account for allowable margin, it must also be performed with competitive commercial offerings in mind,” Gill says.
“Failure to do so will negatively impact demand, and thus squander capital.”
Gartner says IT leaders can follow this eight-step approach if asked to investigate a leasing service:
“The complexities and risks inherent in offering commercial colocation will confine the majority of such offerings to educational and governmental agencies, as well as vertical industry ecosystems, through 2018,” adds Gill.