Case study

A1 data center at Mikrocop business premises

A1 has decided to lease the data center at Mikrocop’s facility when they were setting up a new core location for their telecommunications and IT equipment. They chose Mikrocop as our facility meets the high security standards and requirements needed to set up data centers.

“It was very difficult to find vacant and equipped premises that fulfil our requirements. We were also looking for a center located near the A1 main building as our experts need to access the equipment on a daily basis,” explained the leading private provider of comprehensive communications services in Slovenia.

Moving the ‘heart’ of the A1 network to a new location meant considering not only the strict security standards but also the environment. Thanks to our free-cooling air-conditioning devices, an even more efficient means of cooling, the environmental management system already in place at A1 is now even better. They use energy-efficient technologies that use significantly less electricity than before.

Data centers – lease or build your own?

Before the last economic crisis, when the decision on whether to lease or build your own data center more frequently leaned toward the latter – primarily because the majority of companies had investment funds at their disposal and there were no highly-specialized providers on the market who could offer suitable solutions for even the most demanding users.

“In recent years, we have seen a drastic reversal in this trend, not only because of dynamic economic conditions, but also because of the fact that leasing a data center from a trustworthy provider is a safe and more economically favorable decision,” explains David Habot, assistant to the head of strategic development at Mikrocop.

There are a number of reasons to choose leasing a data center over building your own. Practice has shown that companies find it difficult to assess what their needs will be ten years down the line, which is the average lifespan of a data center. Furthermore, the time needed to build a data center can exceed one year and specialist knowledge of this type of technology is required to be able to carry out the construction and operation.

The construction costs of a data center can reach several thousand euros per square meter, while the operating and management costs of leasing are significantly lower. Moreover, the monthly costs of leasing a data center are consistent, predictable and are based on actual needs and usage.

One of the key factors when deciding whether to lease or build your own data center is location. Companies usually want the data center to be located in their vicinity and international studies show that the majority of decision-makers want a data center located no more than 50km from company headquarters.

Risks of lease and construction

Both options – leasing or building your own data center – are linked to certain risks; the construction of your own data center is primarily connected to risk relating to the investment.

Naturally, leasing data center capacities also entails certain risks and consequently the fear that the company will lose control over the data center elements. “Some organizations and companies will simply not take on this type of risk, mainly due to their organizational culture. However, with computing expanding to the cloud, the borders between companies are quickly changing. In the past, it may have been the case that it was not possible to hand over internal IT to external service providers, but now it has become standard practice. It is particularly important to choose a competent and trustworthy provider with whom you establish a transparent relationship that is set out in a service-level agreement (SLA),” Habot adds.