CyrusOne News and Blog

CyrusOne: Federal Government Looks to Colocation to Reduce Spending

January 13, 2017

Jan 13, 2017

CyrusOne’s CEO takes us through new government regulations and how federal IT managers can handle them.

by Gary Wojtaszek

An unparalleled increase in the amount of data center space that government agencies need today is driving federal business and mission expansion, exponential data growth, and an increasing number of new applications across IT platforms. However, new federal regulations no longer allow U.S. government agencies to build or expand their own data centers unless they provide enough information proving it’s absolutely necessary to the Office of the Federal Chief Information Officer. This Data Center Optimization Initiative replaces its six-year predecessor and is accompanied by additional rules. Its main goal is to reduce data center spending by $1.36 billion from 2016-2018. According to the U.S.¬†Government Accountability Office, data center consolidation and optimization efforts have resulted in $2.8 billion in savings from 2011-2015, though the government’s total IT spend is nearly $80 billion.


New Data Breach Response Requirements

On the other side, the Federal Trade Commission contracted new rules for data breach responses. The requirements will come in three stages: securing existing infrastructure, fixing the vulnerabilities that may have led to the breach, and notifying everyone affected by the incident. While these seem like basic best practices for any organization, some may go without implementing without the FTC mandate. More than four in every five federal agencies are using some sort of analytics to examine their possible weaknesses when it comes to detecting and preventing data breaches, according to a report from MeriTalk. However, nearly three in five agencies surveyed still acknowledged they suffered at least one lapse in cyber security per month. In fact, nearly half of respondents noted there’s too much data to sift through, and about one-third said they don’t have the proper systems to get all the data they need.


Leasing Data Center Space

For 30 years, government data centers were typically in-house operations, vested and managed by federal agencies. With little predictability of future data requirements, many government data centers were overbuilt to outdated specifications, which do not easily accommodate modern equipment. So, how can federal agencies best save money yet still ensure they’re meeting IT security regulations and using top-of-the-line equipment? Leasing data center space from a colocation provider is an option many agencies are looking to because these types of data centers are more likely to mitigate risk, provide lower build and operating costs, deliver a resilient environment with physical security and compliance, scale for future growth, and meet those growth requirements faster. To learn more about how colocation data center providers can help federal agencies, visit CyrusOne’s website. Follow @CyrusOne on Twitter to keep up with the story.