Late last year I was going to comment on a Rich Miller post about a ComputerWorld interview with Ken Brill, but I just didn't get around to it. Ken Brill is founder and executive director of The Uptime Institute Inc. The quote I liked from Ken was:
"The business question becomes, Will IT get more money so the increasing portion of the budget that facilities represents doesn’t crowd out other IT initiatives? Or will the increasing facilities [costs] result in curtailing other things? That’s the economic truncation of Moore’s Law."
What reminded me of this older story is one I ran across recently about a Baltimore Technology Park study that examines the costs for SMBs to build their own data center vs. rent colocation space. The study summary, posted here, shows the cost savings of colocating IT infrastructure instead of attempting to build your own facility.
To me it has always been kind of a simple equation that it is cheaper and easier to colocate instead of attempting to go it alone, but as they point out, each organization's situation is different.