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6 Ways to Reduce Data Center Costs

Reducing data center costs is a crucial objective for organizations seeking to optimize their operations. Global IT spending on data center systems worldwide is expected to reach $222 billion in the U.S. in 2023. Therefore, many businesses are turning to outsourced IT support to realize high productivity while managing costs. By leveraging this expertise, organizations can implement six key strategies that not only lessen data center costs but also enhance overall performance and competitiveness.

1. Assessing and Rationalizing Efficiencies in Hardware and Software Solutions

To successfully decrease data center costs, it is essential to assess and justify the competence and usage of existing organizational hardware and software solutions. By partnering with trusted IT experts, businesses can conduct comprehensive assessments, identify areas for optimization and consolidation of infrastructure and implement tailored strategies. Augmenting hardware and software assets enable organizations to enhance scalability, minimize risk and increase value across their operations.

2. Addressing Data Protection, Cybersecurity and Regulatory Compliance

Data protection, cybersecurity measures and regulatory compliance are integral considerations in any data center cost reduction strategy to ensure that reduction doesn’t result in a compromised environment. Working with an IT professional can help ensure your solutions are compliant. Streamlined data protection solutions, such as cloud-based options, that reduce your data center footprint while enhancing your cybersecurity profile and regulatory compliance are key and can help organizations reduce costs associated with security breaches and violation penalties simultaneously.

3. Consolidating and Streamlining Data Center Assets

Data centers are expected to consume 20% of the world’s power supply by 2025. Therefore, consolidating and organizing data center assets is a powerful approach to reduce spending and improve efficiency. Outsourced IT support can help analyze data center infrastructure, identifying opportunities for amalgamation and centralizing resources to eliminate redundancies and allow for full utilization, especially as many organizations are moving more workloads to the cloud. This not only results in financial savings but also simplifies management, limits energy consumption and enhances organizational efficiencies.

4. Cloud Migration via MSP Outsourcing to Preserve Internal Resources

Cloud migration has become a prevalent trend in reducing data center expenditures. Some IT partners offer Managed Service Provider (MSP) solutions that facilitate seamless cloud migration and adoption, allowing organizations to preserve limited internal resources. By leaning on cloud migration and MSP outsourcing, businesses can cut back on CapEx expenses, improve flexibility and mobility, and enhance their ability to scale resources and pay as you go.

5. Documenting and Establishing Backup Protocols

Before implementing any changes, it is critical to document existing systems and establish a robust backup strategy. Professional outsourced IT supports the design and implementation of reliable recovery solutions tailored to business’s needs. By establishing solid backup protocols and disaster recovery plans, organizations can be protected from data loss, expedite retrieval processes and maintain uninterrupted operations to avoid financial losses from technical problems.

6. Automation and Monitoring Tool Deployment

Automation and monitoring play a vital role in minimizing data center costs by improving productivity and proactively addressing issues. These tools streamline routine tasks, enhance operational output and provide real-time insights into data center performance. By automating processes and deploying monitoring tools that consolidate management tasks, organizations can streamline labor costs, amplify workflow and improve resource allocation.


Reducing data center costs is a top priority for organizations aiming to optimize their operations and maintain their competitive edge. With its expertise in assessing efficiencies, addressing data protection and compliance, consolidating assets, and enabling cloud migration and automation, Cerium Networks is the ideal partner for achieving these goals.

To position your business for success in the dynamic data center landscape, contact us today and discover how we can become your trusted partner in achieving your cost optimization goals.

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