Pros, Cons and Beyond: Emil Sayegh Compares Different Compute Models in Dallas

DALLAS, TX – Hybrid IT is all the rage. But it’s far from a homogeneous trend. That’s why panels about enterprise end-users are a staple at CapRE’s Data Center Summits. And these discussions are never quite the same as before, since this topic is so dynamic. CapRE’s Dallas Data Center Summit in August was no different, and that’s why we invited Emil Sayegh, CEO of Hostway Services, Inc to present an opening keynote presentation, titled The Future of Data Centers: How the Cloud Providers are Playing with Traditional Data Centers. And Sayegh had quite a bit to say about the direction – and reality – of the Cloud.

And according to Sayegh, the bottom line is that the Cloud, with all of its hype, will never replace other models of compute, such as colocation or managed hosting. However, it’s vitally important to understand what goes where.

Doing it In-House

data center summit“When customers want to run their own data centers, that’s usually when they have legacy applications, or old applications that have been around for 20 years that are hard to move, that require custom gear, that require custom maintenance, and require people that know how to run them,” shared Sayegh. “That’s when customers usually want to run their own data center. They want to have control over it. There may also be some security issues, where again, they want to keep control of it. That’s the perfect environment for a customer wanting to run their own data center.”

First Up: Colocation

“Then if you go to colocation, this is when a customer says, okay, look, this stuff is movable. I can run it on standard gear. I can run it away from my facility,” he continued “And colocation is a great way to host some of these applications with things like OSS, workflow, ERP and other customer software apps.”

What About Packaged Apps?

According to Sayegh, more “packaged apps” are probably much better suited to a managed hosting provider, such as one that has expertise in Microsoft technology, analytics technologies, or VMware. “This is the more, kind of, standardized applications in which they can provide expertise,” he explained “Oracle and so on and so forth.”

Emil Sayegh, CEO of Hostway Services, Inc

And Standardized Apps?

On the flipside, standardized apps probably belong in the public cloud. “Those that can run, that don’t require a lot of intense customization, that don’t require a lot of intense, what I would describe as security, those are perfect for the Public Cloud,” advised Sayegh. “Especially those apps that go up and then go down.”

Finally, On-Prem?

“So to kind of sum it up, owning your own data center and doing it yourself, you get total control of the facility, including the facility location,” he mused, going back to on-premis solutions. “If you want the facility in Dallas, you’ll get it in Dallas. If you want the facility in Carlton, you get the facility in Carlton. And you get total control.”

“The issue is that you own it,” he cautioned. “And you are going to have to outlay a lot of capital for that. And the second issue is that you have to run it. You have to run the facility, but you also have to run the IT in that facility. And you have to have the expertise. If your application is Microsoft-based, you have to have Microsoft experts. If you have an Oracle database, you have to have Oracle experts. Or contract with them.”

“But it’s your problem,” stressed Sayegh, concluding this portion of his remarks. “You have to think about it. You’re the general contractor at that point, and you have to think about all of these issues. And the trends are going away from you owning all of the assets, to the CFOs are putting more and more pressure on going to an OpEx model, and away from a CapEx model.”

For more coverage of this presentation, check out previous CapRE Insider Reports: