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What is a Data Center?

As we live more and more of our lives online and exchange of digital information is becoming more important to keep businesses up and running. Digital exchanges require massive computing and networking equipment which is located in a central physical location called a data center.

A data center is a specialized computer room that houses storage and computing equipment used by an organization or company. The essential elements of a Data Center comprise servers, which house the processing power that transforms raw data into usable information and storage devices that store the information on hard disk drives or robotic tape. In addition, a data center relies on communication and networking equipment such as switches, routers and miles of cables that facilitate the transfer of information between servers.

In the 1990s, when IT operations grew and companies began to utilize cheap networking equipment to house their networking equipment in central locations, the term “data center” was the first to be used. Companies can either build their own data center on their own data center types premises or partner with a third-party provider of data center services who offer colocation and managed services. Third-party providers typically offer a more cost-effective and energy-efficient alternative to on-premises data centers.

Many of these third-party alternatives also offer more flexibility when it comes to policy management. For instance the data center may provide multiple policy environments in a single location that allows IT to limit the workload of data with specific policies that meet requirements for compliance across geographical regions and business units. This can help reduce security risks and improve information governance.

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