Data Centers or Infrastructure as a Service: Comparing Cost and Security

Deciding between building and maintaining your own data center or moving to the cloud or IaaS can be quite the head scratcher for an IT executive. In some cases, the terms “data center” and “cloud” might be interchangeable. The first step in decision-making is clarification of terms and a clearer understanding of your options.

Why move to the cloud? Can Infrastructure as a Service (IaaS) be used for a data center? Which option is better for the future needs of the organization?

Data Centers

“Data center” is a general term used to define an organized area of servers and storage, either onsite or offsite, that is managed by trained data center and IT specialists. The data center equipment is used to store user and organizational data and make it accessible when needed. With many data centers kept onsite, network users do not rely on an Internet connection to access the local data. As long as the local network connection is available, the data is accessible.

Cost

Building and maintaining your own data center include the following cost factors:

  1. Staffing and training – hiring IT expertise and paying for training to maintain, backup, restore and upgrade data center equipment, as needed.
  2. Architecting – forecasting for current and future data storage requirements, workload and scalability
  3. Facilities – finding an expandable location for the equipment that is secure, safe and with a low risk of break-ins and natural disasters
  4. Utilities – covering the cost of electricity, wiring, air conditioning and other utilities required to keep the servers running 24/7/365
  5. Equipment – purchasing and evaluating ever-changing equipment and storage needs, year over year
  6. Redundancy – ensuring the data is backed up or available immediately should the storage equipment or servers encounter a failure
  7. Software – purchasing the software required to keep the servers running efficiently and the data storage secure
  8. Expansion – planning for expansion of the data center as the data storage requirements increase

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Security

If there is an emergency situation at the data center location, such as fire, flood or other physical damage, or an attempted data breach, the actual servers and storage are at risk of being harmed and unavailable. Backing up the data or maintaining a data center elsewhere may help mitigate the risk of failure or loss of data.

Cloud Computing

In plain terms, cloud computing is defined by the National Institute of Standards and Technology (NIST) as a set of shared resources and services available to end users (cloud clients), quickly and with little management, via an Internet connection. Cloud computing provides these services via three general models: software as a service (SaaS), platform as a service (PaaS) or infrastructure as a service (IaaS). An example of SaaS would be an email application accessed through a web browser. Platform as a service is typically used in the web or software development world. When developers need to collaborate on a project such as an application or software creation, PaaS offers a good option for a tool or platform to be used in this way. In the case of data centers, IT executives considering the “cloud” would be interested in using Infrastructure as a Service (IaaS). IaaS provides servers, storage, virtual machines and more for the use of running software and other necessary components needed in the IT environment.

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Infrastructure as a Service (IaaS)

An IaaS environment is also considered a data center that is accessible via the cloud or Internet-based services, hence the reason the terms can cause some confusion. The difference is that the data center equipment is not purchased or maintained by the organization but rather purchased as an on-demand service from an IaaS provider. IaaS can be available via the “public cloud,” where the shared infrastructure services are open for public use. “Private cloud” is also an option, where the services are available, but only for the single organization and via a private network. Some providers are also offering a combination of these options, referred to as “Hybrid Cloud.”

Cost

The cost of building and maintaining IaaS is different from an organizationally-owned data center and can significantly assist in controlling budgets. As part of the service, the IaaS provider does the staffing and training of storage experts, provides the facilities and utilities, furnishes the equipment, backs up and builds redundancy of the data and offers security – all for a single price. With an in-house data center, the organization is paying for these requirements all the time. With “pay only for what you use,” IaaS provides customization, agility, control, dynamic scaling, optimization, security and efficiency for a lower total cost of ownership. And with an IaaS provider, there is also the ability to have the “latest and greatest” in technology, making it easier to stay up to date.

Security

When using a private cloud, IaaS offers dedicated servers for the organization’s mission critical data. The IaaS provider is offsite and builds redundancy and backups into the service so the organization’s sensitive data is always secure and available.

See also: What is a High Security Data Solution for IaaS?

Why NEC for Private Cloud IaaS?

As an original equipment manufacturer of servers and storage, NEC is uniquely positioned to offer IaaS to clients without the use of third-party sourcing. IaaS is not a “one size fits all” solution and NEC can tailor customizable configurations based on your organizational needs.

Cost

Because of the lower total cost of ownership, NEC’s IaaS solutions offer long-term scalable and quantifiable benefits to organizations at a predictable and financially manageable expense.

Security

NEC’s hosts its private IaaS infrastructure 200 feet underground at Iron Mountain’s Western Pennsylvania Data Center. Iron Mountain provides FISMA (Federal Information Security Management Act) compliance to ensure Department of Justice Level 4 security. This security level is the highest federal regulatory standard.

When considering cost and security, IT executives are weighing options for highly sensitive and mission-critical operational environments. As the organization’s needs expand, so will the cost of maintaining an onsite data center, equipment, real estate, utilities and more. Moving to IaaS, as part of a cloud computing solution, is an opportunity for enterprise environments to manage expanding requirements for security, regulatory compliance and business continuity at a lower total cost of ownership. NEC’s managed IaaS solution, as well as “best in breed” server and storage options, offers organizations dedicated servers, stored and physically secured deep in Iron Mountain’s underground data center.

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What is a High Security Data Solution for Infrastructure as a Service (IaaS)?

By now you may know that NEC offers a highly secure, federally compliant Infrastructure as a Service offering, hosted on NEC Nblock™ technology inside Iron Mountain’s federal government compliant data center in Pennsylvania.

What you may not know is that  NEC now provides customers with an extremely secure, private, Cloud-based SAP HANA® service solution.  Simply put, NEC’s IaaS solution is based on NEC’s Nblocktm technology, combined with the high security, federally compliant environment in Iron Mountain’s data center.

What is SAP HANA?

SAP HANA is the in-memory computing platform that delivers super-fast data crunching, more intelligence, and simplified IT environments – whether deployed on premise or in the cloud. By providing a solid foundation for all the organization’s data needs, SAP HANA also allows you to run live, with speedy data access, and without having to maintain separate legacy systems. Translation? Crunching volumes of Big Data in a SAP HANA application no longer takes hours, but rather minutes or seconds.

Now, NEC customers who are migrating to SAP HANA and have a need for highly secure data can have a single-tenant and fully managed private cloud-hosted environment with a 100% dedicated rack, solidly built on NEC’s Nblock converged infrastructure technology. All of this is hosted within an SAP HANA-certified and FISMA-compliant environment, providing one of the most hack-proof data storage, extremely high availability and secure operations platforms available today.

NEC’s Single-Source Solution for Security, Reliability and Compliance

Since SAP HANA is an in-memory platform designed to make the processing of large data volumes much faster and more efficient, NEC engineers developed an infrastructure as a service (#IaaS) blueprint specifically designed to address resource-intensive SAP HANA needs, for a true turnkey service to enterprise customers, government clients and partners.

As an SAP-certified Provider of Hosting Services, as well as Operations Services for the SAP HANA platform and Application Management Services, NEC uses a professional delivery model based on best practices for mission-critical SAP applications.

Future #IaaS revenues will more than triple in 2020 to $43.6 billion. #cloud Click To Tweet

Achieving these SAP certifications is not a simple thing. There is an extensive review by SAP of NEC’s IT service management processes, its security measures, facilities setup, experience in SAP operations, and NEC staff to ensure compliance with SAP’s requirements for quality, availability and high security.  This intense review process repeats every two years.

As an SAP certified provider, NEC delivers a broad portfolio of SAP certified IT services related to SAP applications. These services, together with NEC’s large-memory enterprise servers for SAP HANA, provide data center customers an extremely high level of performance and security to run their mission-critical SAP applications in one of most secure and resilient facilities in the world, Iron Mountain.

Unparalleled Virtual and Physical Security

NEC’s hosting partner in this solution, Iron Mountain, is the global leader for storage and information management services. With a real estate network of more than 80 million square feet across more than 1,350 facilities in 45 countries, Iron Mountain is dedicated to protecting and preserving what matters most for customers.

Organizations today face increasing data center needs for privacy and security as well as compliance with environmental regulations. Located more than 200 feet below the earth’s surface, Iron Mountain’s energy efficient, underground data center in Pennsylvania is part of a 200-acre campus that offers NEC’s customers predictable, long-term scalability in a stable, highly-secure environment–the ideal hosting for NEC’s IT infrastructure and applications.
Iron Mountain’s FISMA High framework, large federal customer base, energy efficiency, and “U.S. Department of Homeland Security Level IV critical facility standards” enables NEC customers and partners to leverage its extensive compliance support to address their specific end-user requirements (whether ISO:27001, HIPAA, PCI-DSS Level 1, or SOC 2 Type II).

Have more questions about Infrastructure as a Service from NEC? We can help you.

The Future of IaaS

IaaS is becoming a major IT initiative, and showing no signs of slowing down in the future. In fact, the majority of participants in a recent IDC survey indicated they were either currently using or planning to employ some form of public cloud IaaS by the end of 2016, and it also forecasts that future IaaS revenues will more than triple in 2020 to $43.6 billion.

Forbes has reported that 2016 spending on public cloud IaaS hardware and software will reach $38 billion, and projected to grow to $173 billion in 2026.

These organizational responses measure more than just an IT trend.  They reflect a movement toward flexibility and high security data, and the growing need for an endlessly scalable, cost effective and completely reliable IT infrastructure solution.

#IaaS h/s will reach $38 billion & projected to grow to $173 billion in 2026 Click To Tweet

In Conclusion

With mounting concerns about data security and the instability of most public cloud services, organizations are seeing the need for a reliable single source IT and UC provider.  It is time to let you know that NEC is much more than a global leader in Biometrics innovation, UC solutions and on premises platforms. It is the expert provider of a truly remarkable IaaS solution. Together with its large-memory enterprise servers for SAP HANA, NEC provides data center customers with an unmatched level of high availability performance and SAP-certified, federal government-ready data security.

So … how safe is your organization’s most private information?

 

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NEC at Enterprise Connect 2016

Enterprise Connect always attracts technology innovators and creative disruptors in cloud solutions (UCaaS, IaaS, CCaaS, etc.), Unified Communications, the Internet of Things and more. This year’s event was again abuzz with powerful keynote presentations, lively panel discussions, and distinctive product demonstrations and exhibits. As a proud platinum sponsor, NEC helped attendees “Discover the Power of SMART Enterprise”, attracting an impressive crowd to our booth and winning a prestigious award for the second year in a row.

Ram Menghani - Enterprise Connect 2016“Last year, we introduced our Smart Enterprise approach to helping companies work more efficiently,” said Ram Menghani, vice president of product management and development, NEC North America. “This year, we demonstrated how our Smart Enterprise solutions are making a difference in all parts of our customers’ organizations, from the reception area and data center, through other areas like customer care centers and conference rooms, along with mobility solutions that enable seamless communications from any location.”

Showcasing the SMART Enterprise

On the show floor, visitors enjoyed a tour of the SMART Enterprise. Our display represented different departments within a company, highlighting how NEC solutions, such as UNIVERGE 3C and UNIVERGE BLUE, help unite every area of a business.

Examples of what visitors experienced:

  • Our SMART Receptionist, a touch-screen that allows someone to work remotely while managing the lobby, greeted guests in the reception area. Security protocols then went into effect as visitors were screened by one of our biometrics solutions.
  • A jaunt to the SMART Conference Room allowed visitors to work at individual stations, such as laptops or tablets, while seamlessly sharing information (even across several rooms or locations).
  • The SMART Customer Care Center displayed how UNIVERGE BLUE’s multi-channel interaction – voice, email, chat, video and voicemail, remote agent support, and analytics in the cloud – improves customer service and productivity.
  • The SMART Data Center showcased high availability infrastructure, including NEC’s unique Fault Tolerant servers that provide up to 99.999% uptime.

UNIVERGE BLUE Wins Unified Communications as a Service (UCaaS)/Hybrid RFP Award

Each year Enterprise Connect holds a mock request for proposal (RFP) session. Every vendor that submits a response is required to answer questions related to their solution’s architecture, features, and total cost of ownership over a five-year period.

NEC was awarded the highest overall score in the annual UCaaS/Hybrid mock RFP session for the second year in a row when NEC’s UNIVERGE BLUE Business Cloud Services UCaaS solution was selected as Top Cloud Solution with Lowest Total Cost Ownership.

“NEC has consistently ranked at or near the top in delivering value to its customers, said Menghani, “and the back-to-back, top-mark results from this mock RFP analysis further validates the value of an NEC solution.”

We’ll have a whitepaper of the 2016 results available soon. You can review the specifics of last year’s win by clicking here.

Session Speakers

NEC and its partners were featured speakers in several sessions throughout the week.

Menghani took part in the first general session of this year’s conference, the “UC Summit: Is the Path to UC Changing?”.

Watch video of the UC Summit

It was a lively panel featuring NEC and execs from Google, Cisco, Mitel, Microsoft, Avaya, and Unify.

“The communications market is changing aggressively,” Menghani said during the summit. “Having a combined infrastructure of UC and IT plays a very important role because they go hand and hand. It’s a wonderful benefit.”

Other featured speakers at this year’s Enterprise Connect included:

  • Gail Kasek, senior manager of SMB Product Management, hosting the breakout panel,  “Your Next Endpoint Deployment: Getting to Specs and Costs”
  • Kurt Jacobs, director of Internet of Things solutions at NEC Enterprise Communication Technologies, featured in the panel, “Disruptor Panel: Internet of Things and Enterprise Communications: Is Convergence Coming?”
  • NEC customer Steve Molander, chief information officer of Frandsen Financial Corporation, as a panelist for the “Driving End User Adoption for UC” session
  • NEC customer Roger Bruszewski, vice president for finance and administration at Millersville University of Pennsylvania, featured in the “EC Summit: Is There a New Model for Enterprise Communications and Collaboration?”

“When looking for an enterprise communication solution,” Bruszewski said to his audience, “there are plenty of vendors out there. However, you don’t want just a vendor. You want to find a partner who will take time to understand your needs and thoughtfully integrate their solutions within your company.”

Thank you to everyone who visited us during Enterprise Connect 2016 – our customers, partners, consultants, analysts, and media. We look forward to connecting with you again next year as we continue to evolve the SMART Enterprise.

YMCA of Greater Louisville: Using UC to Transform the Guest Experience

This powerful narrative about the YMCA of Greater Louisville shows how the organization’s use of NEC unified communications (UC) transforms the guest experience. YMCA management and staff share how NEC technology is empowering employees to connect more closely with members—resulting in a better experience for the Y’s membership.

Utilizing a newly built contact center that serves 17 branch locations across three counties, the YMCA increased onsite productivity by effectively handling on average 12,000 calls a month from a single remote location. Which leaves more time for staff to personally interact with their local members. Learn more about the YMCA’s story presented in their own words.

NEC technology can help other organizations grow their businesses through unified communications solutions. Are you ready? Let us know as we are ready to help.

NEC Advantage Executive Conference Gives Dealers First-hand Look at Latest Solutions

More than 125 top dealer organizations gathered in May to attend NEC’s annual Advantage Executive Conference, held this year in Phoenix. A total of 502 attendees came together to learn about NEC’s latest Smart Solutions for Smart Business, see demonstrations of the latest solutions, and network with counterparts from other organizations.

The annual event provides an excellent opportunity for NEC dealers and consultants to meet directly with NEC product and solutions experts and management. The exhibit area featured demos of not only NEC’s newest solutions, but also related products and services from vendors who work directly with NEC.

A highlight of this year’s event was the keynote address by Gartner analyst Tiffani Bova, who spoke on “Reading the Tea Leaves: Responding to the Speed of Business.” Bova addressed “keeping the customer as the true north” when preparing for the new business reality of what Gartner calls the Nexus of Forces: the convergence of social, mobile, cloud and information.

A wide range of products and solutions for both enterprise and SMB organizations were showcased during breakouts and in the exhibit area, including:

  • NEC’s award-winning software-defined networking (SDN) solutions and its Smart Enterprise IT portfolio of SDN-ready UC solutions
  • Smart Solutions for verticals, including higher ed/K-12, hospitality, healthcare and government
  • Applications for NEC’s new UT880 terminal
  • UNIVERGE SV9000 series of communications platforms
  • UNIVERGE Cloud services and hybrid models
  • Customer care solutions
  • Innovative biometrics solutions

“This year’s conference was probably our best ever, in terms of attendance and showcasing a wide range of NEC solutions,” said Larry Levenberg, vice president of sales, NEC Corporation of America. “Our Smart Solution portfolio, featuring innovative NEC technologies such as biometrics and SDN along with our communication networks and UCC solutions, received an enthusiastic response from our dealers.”

To learn more about NEC’s technology and solutions, visit http://necam.com.