5 reasons why data center colocation is good for business

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There are many reasons why companies choose to outsource their data center needs to colocation providers. The task of setting up and managing a data center can be very costly and complicated. Housing IT equipment and data at a third party colocation provider, on the other hand, can save companies considerable money and allow them to spend their time on other value-added activities. Interestingly, an added benefit of working with a colocation provider is it is more environmentally sustainable.

This article explores 6 reasons why you should consider data center colocation for your business.

1. You will free up resources and staff
Data Center Knowledge explained that colocation can allow you to focus on your core business. Your IT team will not have to spend their days dealing with the ins and outs of managing a data center because the colocation provider will take care of all the details. Unlike most organizations, colocation providers have teams that are available around the clock to reboot servers, manage disaster recovery plans, assess power needs and continually run diagnostics on the network. By outsourcing your data needs, you will spend less time worrying about the hardware, and more time devoted to the platforms on which you do your work – the operating systems, applications and databases themselves. 

2. You will lessen overhead costs
According to SearchDataCenter, colocation is appealing for finance directors because it allows them to realize instant cost savings, while still utilizing state-of-the-art infrastructure. Instead of investing heavily in equipment, a company can outsource its data needs and immediately gain access to shared uninterruptible power supplies, auxiliary generators, cooling systems and physical security. Colocation facility owners will be responsible for maintaining these assets and you will only pay for them through standard billing. Additionally, another hidden value in data center colocation is the sharing of resources. May providers manage multiple accounts and, as such, may be able to offer other services at a discount. Data Center Knowledge mentioned that, with respect to power supply alone, outsourced solutions clearly win out over in-house options. Sophisticated dual generators, air conditioning and battery backups are just icing on the cake.

3. You will gain better connectivity
Colocation almost always ensures that a business is connected globally and securely, noted Data Center Knowledge. Alternatively, in-house data center server rooms often don’t have access to a strong Internet connection, nor do companies have the resources to specifically dedicate IT staff to monitoring network speed and traffic. If you choose to work with a colocation provider, you will likely benefit from a faster and more resilient network offered to you at competitive pricing. In your office, delivering 100 Mbps of bandwidth may prove costly, but with a provider you will have better service at a premium.

4. You will be more sustainable
SearchDataCenter pointed out that by outsourcing your data center needs, you will effectively shrink the environmental footprint of your facility. Working with a colocation provider, you will not have to invest heavily in servers, cooling systems, power supplies, generators and other utility-intensive technologies. Additionally, most colocation facility owners design their infrastructure intelligently. Owners will plan their building based on anticipated occupancy. For example, if the owner anticipates 20 percent occupancy, the internal resources will reflect that need. When occupancy increases, the owner will accordingly raise his data center capability to match the demand. This approach is not only cost-effective, but reflects a more sustainable way of doing business, where resources are only used as they are needed. Only when newer data center technologies are unveiled, or additional geographies must be covered, do owners build new facilities. According to Data Center Knowledge, companies that move their to colocation facilities typically save 90 percent on their own carbon emissions. Many data centers invest in green technologies, because they have the incentive, time and money to do so as well. Peter Gross, vice president at Bloom Energy commented on the green nature of colocation. 

“Companies are increasingly turning to data center colocation services to interconnect with other businesses and they want to do this in an environmentally responsible way,” said Gross, according to Data Center Knowledge.

5. You will know that your data is secure
One of the best ways to establish trust is to share risk. With that in mind, you can trust a reputable colocation provider to protect your assets because they are stored in the same facility as theirs. In other words, your servers and their servers share the same walls. Colocation providers have added incentive to protect your data center hardware because they use the same infrastructure to safeguard their own. SearchDataCenter mentioned colocation providers rely on having multiple customers in their facilities. If they don’t, their business model is not that strong.

Colocation is not for everyone, but for companies that simply cannot allocate all the necessary resources, outsourcing data center needs is a good idea.