The decision to move, expand or consolidate your data center must be taken into account in terms of cost, operational reliability and, of course, security. With these considerations in mind, more companies are finding that colocation offers the solution they need without the difficulty of managing their own data center.

Also known simply as “colo,” data center colocation refers to a service provided by companies that provide a shared, secure space for enterprise to store data storage and other equipment-related hardware.

The enterprise customer engages with the colo company in a manner similar to a rental relationship with the property manager, whereby the customer rents space in the facility to store equipment.

The customer usually supplies the equipment: servers and other hardware needed for daily operations. And the Colo Company stores it securely in a cool, monitored environment ideal for servers, while ensuring that the needs for bandwidth are met. The data center offers third-party services that guarantee a certain amount of uptime.

The Enterprise Benefits of the Data Center Colocation:

Colocation facility of data centers could be the right choice for any business of any size, in any industry.

Uptime:

The advantage for enterprises in a data center location is the uptime of the server. By purchasing to a specific level, a certain percentage of uptime for each enterprise server client is guaranteed without payroll costs for maintenance or other maintenance fees.

• Rated/Tier 1 DCs: 99.671% uptime (Max annual downtime: 28.817 hours)
• Rated/Tier 2 DCs: 99.741% uptime (Max annual downtime: 22.688 hours)
• Rated/Tier 3 DCs: 99.982% uptime (Max annual downtime: 1.5768 hours)
• Rated/Tier 4 DCs: 99.995% uptime (Max annual downtime: 0.4 hours)

Risk Management:

Businesses that use data centers as a data recovery strategy are doing so to mitigate risk in the event of an external event (such as a natural disaster) or an outage. The use of a colocation facility ensures business continuity in the event of a major disaster. This means that your network traffic will not be affected if your business location loses power. Redundancy offered at data centers is far more complex than many companies can afford in-house.

Security:

Data centers are equipped with state-of-the-art security technology, including cameras and biometric readers, check-in desks, and security badges. Facilities are monitored 24/7/365, both physically and digitally, to ensure unauthorized access does not occur.

Cost:

Colocation results in significant cost savings compared to in-house management. Enterprises avoid capital expenditure planning such as UPS systems, backup generators, power grids, and HVAC units. Maintenance and management costs for in-house servers are also reduced.

Bandwidth:

Colos provide the bandwidth enterprise servers need. Large bandwidth pipes supporting multiple companies enable performance unlikely achievable at office locations.

Support and Certification:

Partnering with a data center reduces payroll costs by relying on certified experts to manage and troubleshoot equipment. Colocation offers peace of mind.

Scalability:

As businesses grow, IT infrastructure can expand easily. Service providers adjust space, power, support, and security to match enterprise needs quickly.

In-House Data Center Management Versus Data Center Colocation:

Some organizations prefer in-house management for control over data and immediate issue resolution. Risks of outsourcing include potential damage or accidental data loss, though redundancy reduces likelihood. Contract constraints may also limit flexibility.

Choosing a Data Center:

• Is the agreement flexible enough to meet my needs?
• Does the facility support current and future energy requirements?
• Is security up to my standards?
• Is the data center certified for uptime requirements?
• Is the data center scalable for future growth?

If a business leader can answer “yes” to all the above questions, it may be the right time to make a change.

What’s Next for the Data Center Colocation?

The biggest push comes from cloud service providers using colo to meet heavy storage needs. As technology advances, rack storage options allow colocation facilities to reduce hardware space demand. The increasing demand for colo drives the need for virtual and physical security. Ensuring the highest security standards remains a cornerstone of modern data center technology.