As we spend more of our lives online, the exchange of digital data becomes more essential to keep businesses up and running. Digital exchange requires huge computing and networking equipment that is located in a centralized physical location called a data centre.

A data center is a specially designed computer room that houses the storage and computing equipment used by a company. A data center’s core components include servers that house the power to process raw data into usable information, and storage devices that store the data on either robotic tapes or hard disk drives. Furthermore, a data centre relies on networking and communication equipment like switches, routers and Data room benefits that simplify your business miles of cables that help the transfer of information between servers.

In the 1990s, as IT operations grew, and companies began to utilize cheap networking equipment to house their networking hardware in a central location and the term “data center” was the first to be used. Companies can either build their own data center on their own premises or partner with a third-party provider of data center services who offer managed and colocation. The third-party options typically provide the lowest cost and energy efficiency alternative to data centers on premises.

Many of these third party options also offer greater flexibility with respect to the management of policies. A data center, for example offers multiple policy environments at one location. This allows IT to limit data workloads by creating distinct policies that satisfy the requirements for compliance across different geographies and organizations. This can significantly reduce security risks and boost overall information governance.