Close

New Workspace Modernization Research from CDW

See how IT leaders are tackling workspace modernization opportunities and challenges.

Jan 06 2026
Data Center

Data Center as a Service: Solving Higher Education IT Infrastructure Challenges

DCaaS helps colleges and universities bridge the gap between on-premises infrastructure and cloud computing while reducing costs and operational burdens.

Colleges and universities must balance the shift toward cloud-based applications and software as a service (SaaS) with long-term requirements for highly customized, locally controlled research-driven computing. Data Center as a Service (DCaaS) is a utility offering that can help bridge this gap, providing higher education IT teams with cloud-scale infrastructure and agility while preserving the control of traditional hosting environments.

What Is Data Center as a Service?

DCaaS is a subscription-based product that sits between standard colocation and Infrastructure as a Service (IaaS) or Platform as a Service (PaaS) products. With DCaaS, institutions contract for core data center components — physical space, power and cooling, network infrastructure and, most important, the servers and storage all housed in a professionally managed facility. 

In a DCaaS environment, IT teams retain access to dedicated hardware while offloading much of the operational burden associated with running a campus data center. 

Click the banner below for more information about DCaaS offerings.

 

DCaaS enables institutions to consume data center resources “as a service.” Construction and maintenance, service availability (such as uninterruptible power supply and redundant internet connectivity), hardware installation, vendor negotiation and relationship management can all be handled by the DCaaS provider. Everything that you'd expect a data center and networking team to deliver to the operating system and application teams can be part of a DCaaS offering. 

With DCaaS, the capital and operational burden of owning and managing servers is placed on a third-party provider. Physical security, utilities, hardware procurement, installation and ongoing maintenance shift to the service provider, who handles all of this for a subscription fee. In theory, IT teams can scale up or down quickly — in weeks rather than months — with the complexity of meeting these needs pushed to the service provider. 

DCaaS stops at the hardware and networking layer. Institutions still have to supply their own operating systems and applications, just as they would in an on-premises data center. But with DCaaS, IT teams have the predictability and control they want from on-premises computing with a dramatically lower operational cost.

DCaaS With IaaS, PaaS and Colocation in the Context of Higher Education

To understand where DCaaS fits, it's useful to compare it with common offerings on either side of the spectrum: IaaS, PaaS and colocation. 

More primitive and more basic than DCaaS, colocation is little more than a real estate deal. With colocation, a service provider rents space in their facility to the institution. Power infrastructure and data center cooling systems are part of that space — perhaps metered — but everything else is the institution's responsibility. They buy and maintain the hardware, including servers, storage and networking. They install it in the space and oversee every aspect of keeping things alive and happy. Colocation is simply putting your stuff in someone else's room.

For IT teams that have always run their own data centers, colocation is an extension of the operating style they're used to, with lower Internet costs and a different real estate and utility model. Traditional problems — such as low scalability and the headaches of selecting, buying, integrating and maintaining hardware — still remain. 

Colocation was extremely popular when internet services were very expensive, and it still has advantages and plenty of use cases. But for large institutions, colocation doesn't offer the advantages of DCaaS, which trades the capital and operational costs of a data center — all of them — for a subscription fee. If you have an existing colocation facility full of equipment, shifting to DCaaS should be on the table, especially as equipment ages out and needs to be replaced.

EXPLORE: Microgrids help achieve energy efficiency for universities. 

IaaS and PaaS are distinct from DCaaS. While with both services, the institution still rents servers, storage and networking, IaaS and PaaS are completely virtualized: The underlying hardware, network and everything else about IaaS and PaaS is a question of software partitioning. The service provider manages every layer, up to the platform or operating system, with accompanying restrictions and limitations. 

With IaaS and PaaS, you can scale up as high and as fast as you want — usually, in a matter of minutes or even seconds — but only if what you want is what the IaaS/PaaS provider offers. IaaS and PaaS are great when applications are designed for those environments, with minimal hardware dependencies, following templated models designed to handle general computing needs. 

Most higher ed IT teams are already moving applications to IaaS and PaaS as quickly as they can. Where there's a clear mandate to shut down or downsize existing data centers, DCaaS can act as a bridge to gain some of the advantages of outsourcing for applications that don't translate to IaaS and PaaS environments.

SUBSCRIBE: Sign up to get the latest EdTech content delivered to your inbox weekly.

 

How DCaaS Can Reduce Cost and Operational Burdens for Higher Ed

Because budget issues are a dominant factor in higher education computing decisions, it's important to consider DCaaS from this point of view. 

In an environment shaped by sunk costs, long-term bonds and existing facilities, signing up for a new type of service with a monthly price tag may be a tough argument when you've already got a working data center. DCaaS converts capital and staff expenses into operating expenses, but those costs still require careful evaluation. 

So, can a mature institution justify adding DCaaS to its computing portfolio? Here are three ways to look at DCaaS costs to see if it makes sense for your institution:

Capital Investment Avoidance

Everyone already has a data center, but that data center has limited space, aging generators and HVAC equipment, legacy network equipment, and a roomful of UPS batteries requiring regular maintenance and replacement. The cost of replacing or upgrading these systems reveals that on-premises data centers require continual, significant investment.

Staff Optimization

IT teams should be interacting with users and focusing on the reason that IT is there in the first place: applications and institutional needs. Reducing concentration on the mundane day-to-day work of racking and stacking servers shifts staff to higher-value and higher-profile projects with clear institutional benefit.

DISCOVER: Energy as a service offers key advantages for higher education.

Future Proofing

For higher education, where legacy applications co-exist with research and administrative computing, DCaaS provides an escape path out of the world of running your own data center. Operating costs become predictable subscriptions, which makes budget planning and cost allocation much simpler. And when an application goes away or shifts to the cloud, you actually reduce DCaaS costs — unlike in an owned data center.

Hybrid Infrastructure Strategies With Data Center as a Service

As higher education IT teams evolve their IT strategies, DCaaS is a valuable tool to consider in planning a hybrid infrastructure. DCaaS provides a middle ground for application delivery between an on-premises data center and a fully virtual cloud. 

DCaaS fits in a higher education IT environment with modernization requirements on one side and budget pressures on the other, offering technical flexibility and scalability without sacrificing the benefits of an on-premises data center. 

Ladanifer/Getty Images