Data Center Vs. Server Room: Which Is Better?

In a world where enterprise ecosystems live entirely on the cloud, there are instances where on-premise infrastructure is simply a better solution. Regarding on-site hardware, the debate of data center vs. server room is inevitable. Which one is better for your business?

The reality is that not every business requires or can afford a data center. For such companies, server rooms are the answer. That said, with growth, they might ultimately have to move on to a data center. So, the answer to whether you should create a data center or designate a server room isn’t all that simple. 

In this article, we will discuss the following:

• The differences between data centers and server rooms.
• The pros and cons of each option.
• An outline of what might be best for your enterprise’s technological needs.

Not the article you were looking for today? Try these out:

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Data Center Vs. Server Room: The Differences

Data centers are dedicated facilities that house servers, storage, networking equipment, and other hardware, along with cooling/heating systems to maintain the optimal temperature for the equipment. 

A server room has servers and other networking equipment and is part of a building that isn’t dedicated to them. For instance, a server room may exist in an office building with many offices and other establishments. 

What is in a server room? It has servers and other equipment like switches, routers, firewalls, etc. 

Before the advent of cloud computing, server rooms were fairly common. Small and medium businesses and branch offices often had on-site server rooms with their servers local. With infrastructure as a service (IaaS), businesses rely on providers for server and storage requirements. 

Data centers, on the other hand, have become more widespread today. Besides the cloud, enterprises looking for on-site infrastructure can choose from colocation or data center as a service (DCaaS) or create their own facility from scratch. 

While there are similarities between a data center and a server room, significant differences play a vital role in their relevancy for a business. 

Here are the main differences:

• Size: The main difference is the size; server rooms are just rooms in a building, whereas data centers are typically whole buildings. A server room may have a few to dozens of servers, while a data center may house thousands of server racks and other equipment. 
• Cooling systems: Data centers can generate a lot of heat because of the high number of equipment, and that heat must be dissipated with sophisticated cooling systems designed to suit the architecture. Server rooms can use ordinary HVAC systems or air conditioning units as they don’t produce much heat. 
• Cost: The size also impacts the operational costs. As server rooms are smaller, the energy consumption is low, and the maintenance is cheaper. A data center’s operational expenses are much higher in comparison. 
• Security: Data centers have dedicated digital and physical security. Server rooms may not have that level of security, rendering them relatively less secure, at least from physical threats. 

Data Center Pros And Cons

Whether you create your own or choose from providers, data centers offer many benefits. Of course, challenges may also make the cloud or server room choices more appealing. 

Pros

• More reliability: Data centers are equipped with a backup power supply, which makes them more reliable. It essentially helps keep resources available at all times, which is essential for critical operations. 
• Low operational costs in the long run: The upfront costs of creating a data center (even with colocation) can be quite high. Buying the server can be expensive, especially if it’s brand new. However, costs start to subside in the long run if the resources are optimized, and the infrastructure boosts business. 
• Scalability: With a data center, scaling up is easier, as there’s typically ample physical space to add more servers and equipment as needed. 

Cons

• High initial capital: No matter what route you’re taking to create a data center for your business, you must initially commit a high amount of capital. From procuring equipment to renting space, this endeavor requires significant investment. 
• Upkeep and monitoring: Unless you’ve chosen managed colocation, you’re responsible for the maintenance and upkeep of all the equipment. You’ll need to oversee performance and manage multiple maintenance contracts. 

Server Room Pros And Cons

Like data centers, server rooms offer their own unique benefits and drawbacks. While they may seem like an outdated idea, their advantages still make them an attractive option:

Pros

• Low costs: Because server rooms are smaller, their costs are much lower than those of data centers. Both buying servers and running them are comparatively cheaper in small server rooms. 
• More control: Server rooms are on-site where personnel can easily access servers. On-site data centers also offer this benefit. 
• Simpler management: While you need hardware expertise to manage the servers in a server room, it's relatively simpler than data centers, where dozens of engineers may be needed around the clock. 

Cons

• Less security and reliability: Your server may lack reliability if it doesn’t have redundant power sources. Similarly, if the backups are stored in the exact location, there’s a risk of complete loss. 
• Limits to expansion: There might not be enough room to add more infrastructure should the current server room reach its capacity limit. 

When Should You Choose A Server Room Vs. A Data Center?

So you’re running a business, and you opt to invest in physical infrastructure. Now, you’re considering creating a server room in your office or paying for a data center.

Here’s when you should choose to go with the data center route:

• Your business is projected to grow, and you’ll need more space and equipment. 
• You want to take advantage of managed services for data centers and use a colocation or DCaaS provider, OR you have the capacity and expertise onboard to manage a large facility all on your own. 
• You want more reliability, availability, and uptime with redundant storage and power supply. 

Here’s when you should choose to create a server room:

• Your requirements are smaller, with several racks only. 
• You want the cheapest solution for on-site infrastructure. 
• You want the servers to be near and accessible to your employees. 

Investing In Infrastructure

Your business requirements, budget, and future goals will help you answer for yourself the debate around whether to choose a data center vs. a server room. However, both options require investment in hardware, which is a critical undertaking. 

Even for a server room, acquiring servers and other key hardware can run up a bill worth anywhere from tens of thousands to nearly a million dollars. IT leadership has to be strategic when procuring equipment for on-site operations. 

What if you could find the necessary equipment and save money? PivIT works with a large network of OEM's, stocking both new surplus and legacy gear, so you can build the ecosystem you need.

Whether it is sourcing hardware in out-of-the-box ways, bringing various manufacturer solutions to the table, or introducing you to Hardware-as-a-Service, we bring you options.

FAQs

What is a colocation data center?

A colocation data center is a facility where multiple organizations rent space to house their servers and other computing hardware, sharing the same infrastructure and resources.

What is in a server room?

A server room typically contains servers, networking equipment, and storage devices that support an organization's IT operations, providing a controlled environment for efficient and secure data processing.

How much does a data center cost?

The cost of a data center can vary significantly based on factors such as size, location, infrastructure, and technology, ranging from a few million to hundreds of millions of dollars.

What is the difference between cloud and data center as a service?

Cloud service involves accessing computing resources and services over the internet, while data center as a service refers to outsourcing the entire data center infrastructure, including hardware, networking, and maintenance, to a third-party provider.