Choosing the Right Data Center as a Service Provider

Author: Mel Melara

The data center as a service (DCaaS) market is growing rapidly.  
It’s expected to grow by over 500% in the next decade — from $87.4 billion in 2023 to a staggering $476.3 billion by 2032. This growth is driven by companies wanting to outsource their data center and get access to the best possible infrastructure.  
Data center as a service, also known as Infrastructure as a Service (IaaS) is a cloud computing model providing access to offsite data center resources. Outsourcing your data center requirements to third-party providers means you don’t have to manage your data center on-site.

Why Choose Data Center as a Service?

If leveraging data center as a service is appealing because you’ll have access to the latest technology available, that’s just the beginning of the many benefits you can experience from DCaaS. 

Let’s start with the financial impact. Setting up your own data center footprint can be costly and require an initial high CapEx investment. From ordering the hardware which may be affected by supply chain issues, to the costs of the physical space and power you need to make it happen, several considerations go into scoping the build and supporting data center services.  
When you choose to outsource to a competent cloud managed services provider, you take advantage of the provider already having everything you need ready to go. 

Next, a reputable Cloud company will have facilities outfitted to deliver high performance, high availability and minimal downtime — essential for your company to operate without disruptions. 

Effectively managing a data center requires expertise and experience which can be difficult to staff, so having a team of dedicated professionals who know all the ins and outs of running a data center can make a huge difference in how smoothly things operate. 

Protecting your data is also a high priority for many organizations and data center as service providers can ensure your data is secured, stored, and backed up. This is done with multiple layers of protection to mitigate potential incidents.  

Another appeal of many DCaaS providers is their global presence, so you can quickly expand into new regions as needed. Good DCaas Providers will have important compliance requirements cared for by vertical they serve, they will also follow local regulations, so for companies expanding into a new market, this offers peace of mind that critical aspects of the expansion are covered.

Also, data center footprints can take up a lot of physical space. Having a DCaaS provider means you can quickly scale up without considering where you have to place equipment. DCaaS providers tend to optimize space by creating densely packed footprints. 

Selecting Your Data Center as a Service Provider

Before you start vetting potential data centers as service providers, it’s best to nail down your priorities and requirements. The data center market is growing quickly, so you have many options.   

When we work with companies looking to select a DCaaS provider, we start with their requirements, which are divided into three categories: Operational, Location, and Physical.  

Carefully reviewing each area will help you define your specific needs for any DCaaS provider.  


  • Are you using multicloud services or a combination of public and private networks? 
  • What legal rules or standards will you need to meet for data compliance? 
  • Are using eco-friendly renewable resources a priority for your organization? 


  • Is proximity to the data center a priority for your business?   
  • What application latencies are required from the user base? 
  • How often will people from your company need to travel to the enterprise data center?   
  • Where are your SaaS and Security providers found in proximity to the Data Center? 


  • Is there any specific hardware or other physical components you need from your DCaaS provider? What options do you need for your compute stack; BareMetal, VMWARE, Nutanix or OpenStack for example. 
  • Which hyperscaler and internet peering exchanges are available from your DCaaS provider? 
  • Based on latency are there any locations you will not consider? 

Then, when getting ready to meet with the data center as a service provider, there are countless questions to be asked

Some of these questions include:  

  • How do you manage disaster recovery and backup? 
  • How do you handle compliance and industry-specific regulations?  
  • What security measures are in place? 
  • What is their typical Service Level Agreement?  
  • What options are there for scaling? 

Get Support Choosing a Data Center as a Service Provider

Understanding why data center as a service can be beneficial is one thing, but finding your ideal provider is another endeavor entirely.  With so many considerations having a partner to help you navigate the process can make all the difference. 

Download The Data Center Decision Guide below. In this guide, you’ll learn the top 10 considerations for any data center project based on successfully executing over 1200 projects for our clients.   



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