As we spend more time online, the exchange and sharing of information via digital channels is becoming more vital to ensure the running of businesses. Digital exchanges require massive computer and networking equipment, which are located in an centralized physical location, known as the datacenter.
A data center is a computer room that houses the storage and computing hardware for an organization or a business. The fundamental components of a data centre comprise servers that provide the processing power to turn raw data into usable data, and storage devices which hold this data on either robotic tapes or hard disk drives. In addition, a Data Center relies on communication and networking equipment such as switches, routers, and endless miles of cables that facilitate the flow of data between servers.
The term “data center” began to be used in the 1990s as IT operations grew and the cost of networking equipment enabled companies to store all their networking hardware within one central space. Businesses can build their own data center on their premises or work with a third-party provider of data center services that provide managed and colocation services. Third-party options are often a more energy-efficient and cost-effective alternative to on-premises facilities.
Many of these third-party solutions also offer greater flexibility in the management of policies. A data center, for instance can offer multiple policies in a single location. This allows IT to limit the data workloads by creating distinct policies that meet the requirements of compliance across all geographies and companies. This can reduce security risks and enhance the information governance.