Research Hub > Using DCaaS for Strategic Financial Management and Operational Returns
4 min

Using DCaaS for Strategic Financial Management and Operational Returns

Organizations that operate on legacy systems may find it costly to transition to the cloud and need an alternative solution. DCaaS provides you with a way to harness the benefits of cloud computing, reducing cost and operational complexities.

Many organizations operate on legacy systems that may not be compatible with cloud environments. Systems with outdated technology or proprietary software that would require significant reconfiguration or redevelopment to function effectively in the cloud — a cost-prohibitive effort. 

Other organizations may encounter performance issues or latency concerns, as they are dependent on latency-sensitive applications or workloads that require high computational power. As a result, they need to be more mindful of their geographical proximity to data centers and network infrastructure.

Thankfully, Data Center as a Service (DCaaS) solutions provide a lifeline for these organizations that continue to grapple with legacy infrastructure challenges. 

DCaaS vs. the Cloud: What’s Best for Your Organization?

While the cloud can offer scalability and flexibility, it’s not always the best fit for your organization, depending on your specific requirements, limitations and preferences. These are three critical questions to ask when deciding whether DCaaS is right for your organization: 

1.     Can my application workloads handle a migration to the cloud?

Organizations with legacy infrastructure may find it challenging to transition to the cloud due to compatibility issues or the cost of refactoring applications. Some applications also require low latency for optimal performance, making it difficult to rely on the distant data centers that host cloud services. DCaaS offers a solution by allowing your organization to maintain your existing infrastructure while still benefiting from managed services and scalability. 

2.     Is the cloud the most cost-effective option for my organization?

While cloud services offer pay-as-you-go models and scalability, your organization must effectively manage costs to avoid unexpected expenses and optimize resource utilization. Without proper governance and monitoring tools in place, cloud spending can spiral out of control, leading to budget overruns and inefficiencies. For organizations with a more predictable workload or those that have heavily invested in on-premises infrastructure, DCaaS provides a middle ground, allowing your organization to outsource data center management while retaining control over your infrastructure.  

3.     What are my compliance requirements?

Some industries, such as finance, healthcare and government, have stricter regulations regarding data storage and handling because they regularly handle highly sensitive data. DCaaS allows organizations with strict regulations to maintain control over their infrastructure, ensuring compliance with industry standards and regulations while also addressing security concerns. 

Why DCaaS May Be the Answer

DCaaS offers a compelling solution for organizations seeking to leverage the benefits of cloud computing while reducing costs and operational complexities.

Similar to cloud services, DCaaS models are a consumption-based subscription service, but it can help provide you with a clearer understanding of your operational costs. Rather than shifting completely to operational expenditures with cloud services, DCaaS allows you to balance your capital and operational expenses based on your unique infrastructure situation. This enables you to eliminate heavy investments, reduce operational costs and gain more financial flexibility.

In addition, DCaaS providers typically offer transparent pricing structures and service level agreements, enabling organizations with increased visibility into their data center costs and performance metrics. It becomes much easier to track your expenses, optimize resources and hold service providers accountable for meeting agreed-upon service levels. It also becomes easier to allocate costs to specific projects or departments, facilitating cost accountability and chargeback mechanisms. 

Implemented correctly, a DCaaS model provides your organization with a flexible and scalable solution that not only helps provide visibility into your financials, but also increases agility and mitigates risk associated with data center management. 

Finding the Right Partner for Your DCaaS Journey

If your organization is in need of a DCaaS solution, you’ll need the right provider. At CDW, we know that every organization is at a different stage in their technology journey. After understanding your unique challenges, we can help you to implement a solution that best suits your organization. 

We understand that there is no one-size-fits-all approach for data center management. Your DCaaS solution needs to be future-focused so that when your organization grows, your data center transformation remains seamlessly scalable and may even provide a bridge to the cloud.

For Data Center as a Service, you need IT Orchestration by CDW. To learn more about DCaaS, contact your CDW account manager, visit or call 866.782.4239. 

Urban  Haas

Urban Haas

Field CIO
Urban Haas is passionate about successfully enabling business/digital transformation for customers and mapping technology to deliver real outcomes. A field CIO for CDW, Urban is known for pushing the envelope while controlling risk, working with cutting edge and emerging technologies, and always takes a step back to see the bigger picture.
Derek  Hay

Derek Hay

Field CIO
Derek Hay is a field CIO with CDW who has more than 25 years of experience across a diverse set of infrastructure, operations, and security disciplines. At CDW, he helps customers realize their desired business outcomes through sound technology strategies, solutions, and services.