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Running head: DATA CENTER CONSOLIDATION 1 Data Center Consolidation Name Institution
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DATA CENTER CONSOLIDATION 2 Data Center Consolidation Data center consolidation is also known as information technology consolidation refers to strategies put in place by the organizations in order to cut IT assets by utilizing more efficient technologies (Kouroussis et al., 2014). Organizations invest in data center consolidation primarily to reduce the size of the facility with the intention to reduce the overall operational costs as well as IT footprints. In short, IT consolidation helps the organization to save a lot of resources. For example, Microsoft is one of the organizations that reaped much from data consolidation whereby, it save $23.2 million representing a 40% cut in spending levels. Additionally, organizations that have embraced consolidation are secure since their infrastructure becomes more centralized than others and less spread out geographically. According to Hatton (2015), investing in consolidation helps the business to be flexible and more compliance. After consolidation, Guardian noticed a reduction in hardware and workers requirement and was also able to solve problems efficiently. Moreover, in 2002, it saved $3 million thus showing the importance of IT consolidation. Using an outside consultant helps the organization to save huge costs such as maintenance and repair, IT labor, storage costs among other costs (Antonucci et al., 2012). Again, the organization is guaranteed of best services as well as access to new resources. This helps the organization to focus on the core business functions ultimately helping it to eliminate the need to invest resources and capital to the noncore activities. According to Antonucci et al., (2012), outsourcing
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