It is common to discuss the possibility of working with a colocation provider as a way to reduce costs. This is a completely viable way to approach colocation plans. However, there are times when establishing a colocation plan will cost more than building or renovating a data center. Expenses are a tricky issue in colocation, however, as the high-priced colocation models often deliver value in extremely important ways.
With value creation in mind, let’s look at a few reasons why you would want to consider paying more for colocation:
1. You get what you pay for
The data center colocation sector isn’t one of those industries where you’re paying for a brand. One company’s services aren’t usually going to cost more just because that organizations has a brand identity that makes them attractive. Instead, the service providers that are offering high-priced services are doing so because they have customers that need access to extremely sophisticated features.
Colocation providers are well known as companies that can help you reduce costs. As such, they need to be able to justify every expense if you are going to pay heavily for a service. This means that you are getting what you pay for when you turn to colocation plans, and organization’s with demanding IT requirements would do well to consider paying for a more sophisticated plan instead of trying to get a bargain.
2. Colocation providers can deliver services that are difficult to match internally
Try sticking an air-cooled supercomputer in your data center to support big data initiatives – it probably won’t go well. Try to build out a redundant network founded on high-performance interconnects and capable of withstanding extreme circumstances – chances are you’ll run into major technical barriers. Colocation providers have unique expertise in building and managing data centers with flexibility, scalability and connectivity in mind.
Colocation providers don’t just build state-of-the-art facilities, they build data centers that are adaptable enough to respond to future demands. As such, they can offer solutions that are extremely difficult to match in a corporate data center and help you leverage technologies that you may not even think to include in your facility design.
3. You can generate ROI
Sometimes, putting more money into something is the best way to get more money out. That is often the case in IT, as investing heavily in state-of-the-art resources leaves you with considerable gains that deliver value throughout an organization. Colocation is a prime example of this situation as a good partnership can lead to reliability, resiliency, sustainability, operational efficiency and regulatory benefits. Furthermore, once you have lease space in a colocation facility, you have the freedom to refine your configuration based on whatever needs arise within the organization.
All of these factors come together to create a unique ROI generation situation in which organizations can continually create value out of the data center setup. Furthermore, colocation creates the flexibility needed to adjust the IT setup based on changing demands, making it much easier to directly align IT and business requirements to maximize value.
Focus on value creation
It can be difficult to make a choice that involves spending heavily on a technology service. However, being able to demonstrate an ROI can be more powerful than simply cutting costs. Organizations facing significant and frequently changing IT demands may want to seriously consider spending more for a high-performance, high-density colocation service that features next-generation hosting capabilities that position them for short- and long-term success. Such a strategy may be expensive now, but it can serve as a catalyst for value creation for years come.