Colocation Addresses DC Challenges Related to Scalability and Reliability

Article by Nilesh Rane



It started when Kholapur-based Ratnakar Bank wanted to completely transform its business right from expanding its offerings, enhancing its service efficiency to meet its internal and external customer demands and improving customer satisfaction – a business transformation strategy was in the charts. It was then that Anup Purohit, Head of IT at the Bank knew his moment had arrived. Fresh challenges were daunting him and his IT team as they geared up for what was about to come.

This meant that the IT team had to embark on a transformational journey that would put the Bank at the cutting edge of technology. IT at the Bank before the transformational journey was basic. Over 75 branches that were operational at that point in time were all connected to the central office via point-to-point connectivity. At the central office was a server room that hosted a Core Banking Application Server along with some periphery applications.

Challenges related to stability of the IT setup, scalability, reliability and robustness were affecting the growth of the Bank. With legacy systems and need for employee training to embrace new technology, transformation seemed an uphill task.

For Anup Purohit the transformation translated into three key buckets:

  1. IT infrastructure – build a reliable, robust and scalable infrastructure to run the bank’s operations
  2. Business Applications – implement latest in banking applications that align to goals of the transformational journey
  3. People and Resources – hire skilled IT staff to run the next-generation of IT at the Bank

Setting up a data center meant a whole 9 yards for Ratnakar Bank. From real estate selection, capacity planning, and construction of the DC to technology architecture planning, procurement of hardware and networking components and applications to commissioning and planning DR – a time consuming, cost intensive, and all in all a daunting task for the team at Ratnakar.

Anup Purohit turned to colocation as the answer to the issue at hand. Looking further, it made perfect sense to outsource the Bank’s data center infrastructure and management to someone who not only had the expertise to do so, but also had ready solutions that could be commissioned immediately.

Hosting the data center at a third party data center facility benefited the Bank in multiple ways. One of the key benefits was the substantial savings in cost and time. Says Anup Purohit, "We have worked out a model with our service provider where our spend on IT is not only cost efficient but also gives us the flexibility to manage our cash flows. We got the benefit of avoiding a huge CapEx. We only pay for what we use. This was a great value add where I did not have to utilize cash, instead we re-invested that into the business to get more business."

In Conclusion

While CIOs are looking at solutions to address their over-utilized data centers, or to put it positively, while looking at data center expansion or growth projects, they should look and evaluate options carefully. There are many paths that can be right for the business, the trick lies in choosing the right path that fits the organization’s long and short term goals – along with keeping parameters such as performance, reliability, cost optimization and reduction, and ease of management, at the top of their priority list.

Colocation is the answer. Colocation offers several additional advantages that can help businesses as they meander the evolution path of their data centers.