Data Center

DCaaS Offers Cost-Efficiency, Control for Local Government Agencies

Data Center as a Service supplies cloud-like OPEX with on-premises-like control, which is especially beneficial to small and rural cities and counties.

Dominick Sorrentino

Dominick Sorrentino is web editor for StateTech.

For nearly a decade, Data Center as a Service has helped federal agencies transition toward modernized IT environments. In 2018, GovLoop reported that federal agencies have leveraged DCaaS to eliminate infrastructure management burdens and expedite IT modernization efforts.

Now, it’s state and local government agencies’ turn to benefit from DCaaS, and there are many ways those benefits can play out, according to Dan Danciger, integrated services engagement specialist for State & Local at CDW.

“The question with DCaaS — as with any managed service — is, what is your staff size and what are its strengths?” Danciger said. “With DCaaS, by taking on the burden of infrastructure management, agencies can have their staff focus more exclusively on applications or mission-critical projects.”

Click here to learn more about whether DCaaS is right for your agency.

More Control Than Cloud, Less Complexity Than On-Premises

Under the DCaaS model, state and local agencies pay a predictable, recurring cost for a managed data center. Power, cooling, monitoring, rackspace, asset management, lifecycle management, connectivity and security are all managed by the DCaaS provider.

“The only thing the customer is responsible for is the application,” Danciger says. “Everything from the OS layer down is handled by the provider.”

This gives agencies the equivalent of a private cloud, but they’re off the hook for supplying the staff and resources to maintain the accompanying infrastructure. Instead, bespoke service-level agreements give agencies the ability to customize hardware and negotiate contracts accordingly. For example, customers can often choose their own server and operating system architecture. In this way, each DCaaS engagement is unique.

Another benefit: With DCaaS, local governments avoid competing with the private sector for data center management staff. This is especially beneficial for small and remote cities and towns that may otherwise struggle with staffing shortages.

“Some state and local agencies might have just one or two people managing a data center,” Danciger said. “If one of those people is sick or goes on vacation, or if something breaks in the middle of night, you’re in a tough spot.” With DCaaS, 24/7 management and redundant staffing are part of the package.

The only thing the customer is responsible for is the applications. Everything from the OS layer down is handled by the provider.”

Dan Danciger Integrated Services Engagement Specialist, CDW

In theory, a public cloud environment can be deployed more quickly than DCaaS, says Danciger, but that doesn’t always happen.

For example, legacy applications and systems often work poorly, if at all, in a cloud environment, and configuration or redevelopment of those apps can be extremely difficult.

Furthermore, public sector agencies regularly handle and store sensitive personal identifying information that is better suited to a private cloud or on-premises setup, which is something DCaaS accommodates.

Some agencies may also wish to keep their data centers in-state or in-county, which isn’t always possible with a distributed public cloud architecture. This is crucial for latency-sensitive workloads that require close proximity to network infrastructure.

Key Considerations with DCaaS

Data Center as a Service is not ideal for all agencies. Despite offering much more cost savings and greater flexibility than on-premises facilities, DCaaS is less flexible from a recurring cost standpoint than public cloud.

“You have to make a commitment that is usually a minimum of three years,” Danciger said. “With public cloud, you have total, month-to-month flexibility.”

EXPLORE: Cloud optimization must remain a top priority for state and local governments.

Nonetheless, DCaaS is a pay-as-you-go model, Danciger says, and that makes it easier to contain monthly expenses than managing an on-premises data center where you own and operate the infrastructure. Furthermore, scalability is still a hallmark of DCaaS.

“The storage and compute are scalable and provided on a consumption basis,” Urban Haas, field CIO for CDW, told BizTech. At the end of each contract term, the agency would have the option to upgrade equipment and then pay a predetermined run rate for the duration of the next term. For agencies exploring hybrid cloud and IT modernization, DCaaS may provide a faster path than would otherwise be possible with an on-premises facility.

Another consideration with DCaaS is that not all providers are willing or able to work with agencies at the state and local level, according to Danciger.

“Flexential is a provider that we recommend to government agencies,” Danciger said. “They’re all over the country now, from East Coast to West Coast.”

The key to utilizing DCaaS engagements effectively is knowing how to get what you need out of it, and negotiating service-level agreements accordingly, Danciger added. For every town or city’s requirements, there’s a DCaaS provider that can accommodate it. It’s just a matter of knowing how to find them and how to work with them.

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