The Leader Magazine

MAR 2017

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Page 20 of 63

MARCH 2017 21 The impact of this on corporate real estate (CRE) strategies is significant. Data centers are an expensive but necessary component of the modern CRE portfolio – at the very least powering critical processes and workflows and, for some companies, enabling their primary business models. CRE professionals now have a choice as to how best to deploy their infrastructure, as data center developers have created a high-quality real estate product that both private and public sectors find attractive for outsourcing. After all, the fallacy of complete control and greater reliability for companies to build and host their own data center on premises is just that; equipment becomes dated and maintenance protocols do not maintain congruency with the latest best practices. Often, companies relying on owned, on-premises data centers often take a "don't ask, don't tell" approach to their ongoing resiliency: Don't ask for money to upgrade something that works just fine, and don't tell me about the ever-increasing risk and eventuality of a failure. Oversight shifting to real estate As data centers now make up a significant portion of the CRE portfolio valuation, responsibility for them has begun to transition from the IT business units toward the real estate department. And, contractual

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