I am going to start controversially – Ready?
FACT – Not every Data Centre is the same.
There I got it out in the open now – Yes, they all claim they are Tier 3+ (or something similar) – Sic.
Yes, they may have red paint or blue paint or white walls. They may have a great reception area (yes, I had one client Manager who already made his mind up because the Data Centre we were reviewing had a Reception that was a nice big area, and the seats were comfortable, we hadn’t seen the rest of the DC yet). That’s like selecting a new car because the wheel trims are nice and shiny.
The market is a challenging one for the Data Centre service provider, with economic fluctuations, sustainability mandates, and AI-driven infrastructure demands reshaping the market, strategic sourcing has become a critical lever for business resilience. For organisations navigating this complexity, choosing the right Data Centre (DC) partners is no longer just about cost, it’s about capability, agility, and alignment with long-term goals. Let’s face it, once you are in, you will not be moving out through choice within the next 5 years and probably longer.
At BARM, we’ve seen firsthand how the sourcing equation has shifted. Our recent market research and business planning highlights a growing need for flexible hosting solutions across APAC, deeper partnerships with DC service providers, and a sharper focus on risk mitigation and operational efficiency.
The challenge? Many internal technology teams still underestimate the intricacies of DC environments, while procurement leaders face mounting pressure to deliver value beyond price.
The challenge is that the Procurement Team do not understand the Data Centre pricing models and where there may be ‘fat’ in the pricing. We see it time and again where the DC Agreement was signed with a price that was higher than it needed to be. But nobody will question it – because no-one understands the model.
How often does IT or the Procurement Team procure Data Centre services – maybe once every 5 to 10 years. This doesn’t make them experts – by far.
Where we have been involved, we have saved money for those companies – many of which have been used to fit out their racks.
So how do you choose the right DC partner in this tight market?
Prioritise Strategic Fit Over Familiarity
Legacy relationships with DC Account Managers may offer comfort, but they don’t always deliver innovation. Look for partners who understand your business goals and can scale with you. Our SWOT analysis shows that the ability to scale quickly, often through associate networks, is a key differentiator.
Demand Transparency and Technical Depth
In a market flooded with options, transparency in service delivery and technical capability is paramount. AI and new tools now offer visibility into performance metrics, helping clients make informed decisions.
Align on Sustainability and Risk
Sustainability isn’t just a buzzword, it’s a procurement imperative. The best DC partners are investing in green energy, modular builds, and heat reuse strategies. Risk mitigation also matters – evaluating suppliers for compliance, reliability, and security should be non-negotiable.
Engage Cross-Functional Stakeholders Early
Successful sourcing decisions involve IT, procurement, legal, and executive teams. At BARM, we bridge these silos to ensure contract negotiations reflect both technical and business priorities. We provide advice to the legal teams on DC Operational KPIs and Risks helping them negotiate with the DC Suppliers on the T&Cs of your contract.
In a tight market, strategic sourcing is your competitive edge. By choosing DC partners who align with your vision, values, and velocity, you position your organisation to thrive, not just survive, in the digital era.
This BARM thought leadership piece explores how strategic sourcing is evolving in 2025, offering insights on selecting the right Data Centre partners in a competitive, fast-changing market. It’s designed to guide decision-makers navigating today’s sourcing complexities.
Whether you’re looking to review your Data Centre setup, redesign for efficiency, or simply ensure everything’s running at peak performance, BARM is here to help. Reach out for a friendly chat or expert advice at Contact – BARMDC.