Colocation Addresses DC Challenges Related to Scalability and Reliability

Article by Nitin Mishra

Scalability, Stability, Reliability and Robustness challenges typical to Data Centers can be addressed by colocation

When trying to address the challenges faced by over-utilized data center, or on the positive side, while embarking on data center expansion or growth projects, CIOs should evaluate their options carefully.

While there are various ways to address these challenges which are 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.

Among the lot, colocation clearly stands out as the best answer! Colocation has proven abundantly successful in offering business and technology advantages that can help CIOs meander the evolution path of their data centers.

A Case in Point

A classic case in point is that of Kolhapur-based Ratnakar Bank. The bank wanted to completely transform its business – starting 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.

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.

So what did all this mean for the IT team?

The IT team had to embark on a transformational journey that would put the Bank at the cutting edge of technology. 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. IT at the Bank before the transformational journey was basic.

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.

Anup Purohit and his team broke down the transformation into smaller bits. Key among these were their achievement objectives:

  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 going all the way for the 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. It was going to be a time consuming, cost intensive, and all in all a daunting task for the team at Ratnakar.

Turning to Colocation

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. According to Anup Purohit, the Bank’s spend on IT is not only cost efficient but also gives the flexibility to manage cash flows. They also benefited by not having to invest huge CapEx.

The Bank only pays for what they use. For the Bank this was a great value add where they did not have to utilize cash, instead re-invested that into the business to get more business.