Click here to learn why Digital Parks Africa is the right data centre hosting provider for your colocation needs.<\/a><\/strong><\/li>\n<\/ul>\n\n\n\nVermaak says: \u201cThe CFO\u2019s role may be primarily around finance, but it also has touchpoints in multiple divisions. They must have visibility for compliance, risk mitigation and continuity. When deciding on moving from on-premises to colocation environments, cost efficiency is a primary objective, but it’s not just about cutting the price – there are process and systems benefits to consider.\u201d<\/p>\n\n\n\n
He notes that on-premises infrastructure costs can be unpredictable, and the risks associated with on-premises facilities may become unacceptable.<\/p>\n\n\n\n
\u201cA bank, for example, may start with a server room, which evolves to 250 racks and then requires an IT manager, and electrical and air conditioning contractors. It becomes a facilities division they must manage, along with the associated risk and compliance issues. In this type of environment, there are both proactive expenses such as scheduled maintenance and servicing, and reactive expenses such as unexpected repairs or replacement of equipment,\u201d he says.<\/p>\n\n\n\n
By moving the equipment to a colocation environment, they transfer the risk, reduce costs, and enjoy the same – or better – experience, Vermaak says.<\/p>\n\n\n\n
Moving from CapEx to OpEx<\/h2>\n\n\n\n
Kilian says: \u201cOn-premises infrastructure has a significant upfront investment requirement, whereas, in a colocation OpEx model, it’s a predictable, monthly fixed cost. The air conditioning, backup power, maintenance and repairs are all included in one package. The burden of compliance and certification is transferred, with the business obtaining this as a service.”<\/p>\n\n\n\n
Kilian adds: \u201cData centres also offer high levels of redundancy and reliability – reducing the potential impact of outages and improving service continuity. This ties directly into higher levels of revenue assurance.\u201d<\/p>\n\n\n\n
The transition from a CapEx model to an OpEx model benefits overall business strategy, investment opportunities, and operational efficiency, they note.<\/p>\n\n\n\n
Vermaak says: \u201cThe OpEx model enhances predictability in expenses, making it easier for businesses to plan their financial future. This stability can be particularly beneficial in uncertain economic climates.\u201d<\/p>\n\n\n\n
Selecting transparency, flexibility for enhanced benefits<\/h2>\n\n\n\n
However, he says that selecting the right data centre hosting provider is important. \u201cFor example, where a key uncertainty is the rising cost of electricity, it is important for businesses to be sure they get what they are paying for.” <\/p>\n\n\n\n
“DPA is committed to complete transparency in our billing methodology, so the CFO has complete visibility of the power as a pass-through cost. In this way, even if there are power tariff increases, if you know your power requirements, you can forecast accurately with minimal variances from month to month.\u201d<\/p>\n\n\n\n
Choice of data centre hosting provider is also important when it comes to contract duration and controlling costs in areas such as proof of concept testing, he says: \u201cIf tech teams need to carry out testing, they don\u2019t want to be locked into long term contracts to do so.”<\/p>\n\n\n\n
“DPA offers agility and flexibility around contracts, which is an advantage for the CFO. We also collaborate with customers, exploring their longer-term strategies for growing their digital environments so they can prepare long-term budgets. Over and above that, we may be able to offer them savings on their expenses due to economies of scale as they grow.\u201d<\/p>\n\n\n\n
Click here to learn why Digital Parks Africa is the right data centre hosting provider for your colocation needs.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Colocation with the right data centre hosting provider delivers improved cost control, risk mitigation, and revenue assurance.<\/p>\n","protected":false},"author":57,"featured_media":797789,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[20871,16718],"class_list":["post-797787","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-data-centre-colocation","tag-digital-parks-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/797787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=797787"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/797787\/revisions"}],"predecessor-version":[{"id":797795,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/797787\/revisions\/797795"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/797789"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=797787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=797787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=797787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}