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Effective Cost-Saving Strategies for On Prem Data Centers

Data Center
Case Study
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State and corporate organizations aim to support citizens and customers in solving problems and finding solutions. The economic hit of COVID-19 has led to reduced funding and rising internal costs have made it more challenging than ever for organizations to offer their services.

One way they have found relief is by migrating their on-site data centers to the cloud. By modernizing their IT environments, even state agencies such as call centers and unemployment offices use services such as AWS (Amazon Web Services) for flexible pricing, becoming more cost-effective, secure, and scalable.

However, transforming technology and transitioning to the cloud does lead to a common struggle for many organizations: incurring new costs for cloud migration while still funding an on-premises data center. Here, we propose a few ways you can use an on-site data center to your advantage while reducing expenses.

Liberate your budget with these cost-saving steps and propel your organization toward a cloud-powered future:

cloud migration



Cutting capital expenses while transitioning to a cloud infrastructure demands a combination of outsourced IT maintenance, low IT refreshes, and exhausted lease-back and purchase programs.

Outsource IT Maintenance.

Original Equipment Manufacturers (OEMs) often bring costly contracts to their agreements with organizations. Luckily, there are many money-saving alternatives among third-party IT maintenance providers. They offer comprehensive maintenance at a greatly reduced rate of up to 70 percent when compared to manufacturers.

Minimize Costly IT Refreshes.

There are many reasons you may need to purchase new IT equipment from your OEM in order to complete your cloud migration – for example, encountering hardware refresh cycles or component failure. However, these one-time purchases add up and introduce further contractual obligations to your OEM.

You can save on these expenses by avoiding refreshes and leasing systems from a third-party. Furthermore, select the third-party for your maintenance needs as well. Using an alternative provider can save you up to 90 percent compared to similar products from OEMs.

Explore Lease-back and Purchase Programs.

Third-party providers offer lease-back or purchase programs through which they can assess your IT environment in order to ultimately purchase your legacy assets. They evaluate all your servers, storage, and networking equipment and offer you a fair and current value. You can also lease back your equipment for the remainder of your migration.

Once you complete your transition to the cloud, they dispose of your on-premise hardware securely according to industry standards. (You wouldn’t need to wait for your contract to expire as you might with your OEM.)

Lease-back and purchase programs take many forms, allowing you to leverage immense flexibility to meet your migration needs. In general, the agreement is to sell assets and lease them back over a period of time.

How Dataknox Can Help

Recovering costs from your on-site data center can be simplified by choosing a third-party provider who can offer flexible leasing and purchase programs alongside maintenance services and the necessary equipment.

Dataknox provides a turnkey solution including value recovery, full buyout, third party maintenance and global decommissioning and logistics of the physical sites.

Our industry certifications and best practices bring a higher standard to the management of your organization’s hardware and data in the process of transitioning to the cloud and handling your existing data centers.

Learn more about Dataknox, and discover how we can help save your organization money during this budget-straining time.