Colocation data centers are shared facilities which offer a flexible, secure and cost-effective alternative for companies which cannot or choose not to own an entire data center. Let us explore the benefits of colocation data centers, what they mean for your company and what to bear in mind before taking the leap.
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Benefits of Colocation Data Centers
✅ Businesses can rent and share data center facilities.
✅Colos offer flexibility, security and ease of use.
✅Strong focus on sustainable IT practices.
What are colocation data centers?
In an increasingly digital world, businesses rely more and more on data centers for all kinds of operations. These operations range from communications and resource-sharing to transactions and data storage.
However, not all companies require or want a data center of their own. Data centers can be expensive and energy-inefficient , as well as requiring regular maintenance and the capacity for scalability.
Colocation data centers are essentially buildings equipped with the space and resources necessary for data centers. They allow businesses to rent data center facilities in a secure, managed environment.
In a colocation data center, also known as a “colo”, companies normally share:
- Space: Each business rents its own cabinet or rack within one premises.
- Power: Colocation data centers ensure a reliable power supply for their facilities.
- Security: Colos have high-level security measures to protect your company’s hardware.
- Cooling systems: Colocation data centers have sophisticated cooling systems to avoid overheating. The type of system depends on the center.
Normally, the business provides its own data center hardware, such as the servers. If your business prefers not to own hardware, it is worth looking into Managed Hosting. This service rents both the data center space and the hardware to businesses, taking care of all aspects of its maintenance.
However, the benefits of colocation data centers over managed services include greater autonomy over your company’s data center infrastructure.
Types of colocation data centers
There are several types of colocation data centers. The three most common are:
- Retail Colocation: This type of colocation data center offers a shared space with a range of cabinet and rack sizes. Several businesses can host their data centers in one premises and scale up or down as needed.
- Wholesale Colocation: This option rents an entire building/facility to one customer. A company benefits from a managed space without sharing resources with other businesses.
- Hybrid cloud-based colocation: This is a flexible option for companies with both onsite and virtual IT service requirements.
While retail colocation data centers are good options for companies of all sizes, wholesale colos are best-suited to large-scale businesses which require significant data center space and resources.
Find out more about how colocation data centers work with our article What is a colocation data center? .
Colocation vs. In-house data centers
Traditional in-house data centers are owned and operated by a company. This means that the company is financially and practically responsible for the data center’s power supply, security, internet connectivity, maintenance and space management.
Space is especially important if the company needs to scale up or down its IT infrastructure. However, owning a data center does imply greater control and access.
Colocation data centers offer data center premises and services for rent. Amongst the benefits of colocation data centers is that they manage various aspects of data center maintenance and security, as well as offering greater flexibility for your IT infrastructure needs.
Key Benefits of Colocation Data Centers
The benefits of colocation data centers are considerable, both for businesses and the environment. Here is a table explaining its most significant benefits:
| Benefit of colocation data centers | Why? |
|---|---|
| Cost-effective | Companies save costs by only renting the space they need, rather than purchasing or building a data center. |
| Sustainable | F Data centers often consume a lot of energy. Colocation data centers are increasingly focusing on sustainable IT practices, such as renewable energy and energy-efficient cooling systems. |
| Scalable | A company can rent more racks or cabinets if they require more space for hardware, or less if they choose to scale down their IT operations. |
| Secure and reliable | Colocation data centers provide strict, 24/7 security to protect their clients’ IT assets. They also ensure a reliable power supply and often low latency. |
| Simple to use | Colocation data centers manage various factors of the installations, from security to cooling. This simplifies your company’s data center maintenance and frees up your time and attention. |
Why do businesses consider colocation?
Businesses of all sizes can enjoy the benefits of colocation data centers.
Colos provide high levels of versatility, reliability and security that are hard to match with in-house data centers. They also avoid certain maintenance issues (such as cooling), as well as a number of other concerns and costs associated with owning one’s own data center.
Businesses are also increasingly aware of their environmental impact. Colocation data centers provide solutions to several of the sustainability challenges facing IT, particularly power usage and cooling.
In short, businesses looking for scalability, affordability and flexibility are turning to colocation data centers because they provide the advantages of a data center without many of the hassles and investments of traditional in-house infrastructures.
All the factors to consider for a colocation data center
If your company is thinking about using a colocation data center, it should bear in mind several factors. To know whether a colo is right for your business and which is most suitable, consider:
Power density
This is the amount of power used by equipment within a physical space. Can the colocation data center provide enough energy per square foot or per rack to power your company’s equipment?
Contract flexibility
Consider whether the contract allows your company to easily make changes according to its needs, such as scaling up or down. This is especially important for businesses looking to grow.
Location
The physical location of the colocation data center affects its latency. The lower the latency, the better, so search for a center close to a major internet hub. If it is close to your end-users, this is even better.
Hidden fees
Ensure your company is aware of all the costs involved in renting space in the colocation center and that the contract’s conditions are clear. This will avoid the unpleasant surprise of unexpected costs later on. Hidden fees can include the costs of changing a set-up, support and data protection.
Compliance
Legislative and industry-specific compliance is vital for your company. To avoid costly fines or more serious legal problems, you must ensure the center meets both general and industrial requirements and best practices.
WAN redundancy
WAN redundancy means a center has multiple internet lines. This way, redundancy allows your data center to keep running without interruption if one of these lines fails. This is important to avoid downtime and the loss of productivity it causes.
Physical space
How much space will your business’s IT infrastructure require? Can the colo accommodate more racks and servers if your business scales up?
Security
What security measures does the data center take to guarantee the safety and privacy of your company’s IT equipment? Such measures normally include perimeter fencing ot other physical barriers, 24/7 camera monitoring and security staff.
Services
What services does the colocation center provide beyond space and security? Does it offer maintenance or disaster recovery options? Be sure to check if these services are included or extra.
Frequently asked questions about the benefits of colocation data centers
What is a colocation data center?
A colocation data center is a building or facility which allows businesses to rent space and services for their data center, instead of building or owning one themselves.
What are the benefits of colocation data centers for businesses?
Colocation data centers are often more cost-effective and scalable than traditional data centers. They also offer high levels of security, reliable power, low latency and sustainable IT solutions such as liquid cooling and the use of renewable energy.
What are the pros and cons of colocation vs. Cloud?
A Cloud-based data center offers lower initial investment and even easier scalability than a colocation data center. However, these low initial costs increase with the volume of data stored. Meanwhile, the benefits of colocation data centers include greater reliability and security than the Cloud.
Do you need help deciding if a colocation data center is right for your business? Talk to an Evernex expert to discuss the benefits of colocation data centers and find out how we can support your company’s IT needs.
