Should a Cloud Provider Have its own Data Center?

The basis of any cloud service, regardless of its type, is, in fact, two separate components- the IT infrastructure of the provider and the platform on which it is deployed. Therefore, it is logical to assume that cloud service providers with their own data centers are practically full-cycle companies. And at first glance, this is good since the quality of services, in this case, depends on one supplier. But in fact, everything is not so simple because the provision of cloud services and the organization of the data center are two different activities, and we all know what happens when you try to keep up with two birds with one stone at the same time. This article will try to figure out if a cloud provider needs its own data center. 

Advantages of cloud over own data center 

Having your own data center with a cloud service provider can be a significant advantage, giving you complete control over all phases of the IT services lifecycle and enabling you to provide value-added services to your customers. Let’s take a closer look at these benefits and how they translate into interaction with customers: 

Full control

The presence of a cloud provider’s own data center provides control over all engineering systems, the quality of which, in turn, greatly affects the continuity of the provision of services. Thus, the provider can organize the fault tolerance of its own IT infrastructure, not only at the level of the capabilities of hardware solutions and the virtualization platform but also at the level of power supply and climate conditions. With such control, the AWS cloud computing service provider is the only open responsible for the quality of the services provided, not only at the legal but also at the actual level. 

Speed ​​is everything!

The strength of many small companies, compared to large enterprises, is the speed of reaction to market changes. With the emergence of new demand among customers, a large company will get stuck in a number of business processes and bureaucratic delays. And while the giant factory will protect the budget and agree on specifications, a small private enterprise will already bring a product or service to market. Renting cloud capacity can further speed up this process. The speed of deploying a server in the cloud takes only a few minutes instead of several weeks to deliver and deploy a physical server. Thus, it is possible to deploy an entire information structure for a new project in one day. Of course, this property of the cloud also applies to large businesses, but due to the absence of many approvals. 

Stay on top of cloud services

There are many giants and enterprises that are using cloud services due to their scalability and flexibility. It is easy for companies to register themselves for the cloud services and avail the cloud computing services without any hassles. As a result, it started increasing productivity and reducing the cost of infrastructure, letting companies stay on top and beat the competition. Cloud services also offer the software to manage the cloud to secure software. 

Additional services

Also, its own data center allows cloud providers to provide their customers with several additional services, such as renting a server room or rack space for equipment. Suppose the customer’s company, in addition to the need for cloud services, also needs to place its own equipment in the data center. In that case, a provider that can provide both services with high quality will always be a priority when choosing a supplier. 

It should be noted separately that these advantages will bring results only in the case of a high level of implementation of both the data center itself and its own IT infrastructure. 


If a cloud provider decides that it needs its own data center, then in most cases, this brings more disadvantages than advantages. First of all, this is because financial costs are incorrectly estimated at the planning stage. So, the disadvantages include: 

Construction and maintenance costs, maintenance

To build your own data center that meets even the minimum requirements for fault tolerance, very high financial costs are required. After all, it is required to build a building and equip it with all the necessary engineering systems, such as an uninterrupted power supply, industrial air conditioning, fire extinguishing, access control, and many others. It is worth noting that implementing these systems is also necessary to obtain a considerable number of approvals and certificates. Furthermore, the further maintenance of the data center is also associated with ongoing costs for the modernization and upgrade of all systems and, of course, constant monitoring and routine maintenance. 

When faced with additional costs, cloud providers often seek to save money by implementing uncertified systems or abandoning recommendations that they consider unnecessary. Usually, this leads to accidents after some time and affects the continuity of services. In the end, the customer’s business suffers. 

Diffusion of forces

Providing AWS cloud computing service and organizing the data center’s work requires complete specialists. To save on support and construction of the data center, the provider trains its employees, in fact, in new directions for them. Unfortunately, this increases the risk of systems failure due to the influence of the human factor for a rather long period. At the same time, the main activity, the provision of cloud services, will also suffer due to the dispersion of the forces of employees.

The organization of the data center’s work is fundamentally different from the organization of the work of a cloud provider. Whatever one may say, these are two different directions of activity. To cover an additional area of activity, in addition to the main one, not only serious financial investments are needed, but also qualified personnel and experience in such operations. Unfortunately, cloud providers often take on the construction of their own data centers, having neither one nor the other. As a result, the new direction suffers and the company’s main activity.

Can a data center become a cloud provider?

Recently, a situation has increasingly arisen when, on the contrary, a data center expands the list of its services through cloud services, such as IaaS. The same thing happens here. Having a superficial understanding of what cloud services are and not having experience in their practical implementation in the B 2 B sector, the final quality of such services leaves much to be desired. The following often happens: the data center begins to provide virtual server rental services. And at first, everything can go even well, but after a while, with an increase in the number of clients and the load on the infrastructure, accidents begin. Ultimately, six months after the start of cooperation, customers are forced to look for a new cloud service provider.


By transferring their servers to the provider’s clouds, most companies seek to save money and relieve themselves of the burden in a non-core direction for them. When cloud providers host their equipment in third-party data centers, the same thing happens. It allows you to avoid unnecessary headaches and focus on the quality of your services.  If you’re facing any issue, you can contact cloud experts to help your customers take advantage of the cloud smoothly and effortlessly. 

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