Benefits of Colocation in a Global Economy

May 17, 2016

The benefits of Colocation go beyond borders

At first glance, the relationship between a Data Center and a Colocation tenant is simple.

Colocation essentially means renting vs. owning a Data Center.

Just like an apartment building, owning a Data Center has costs for maintaining the building, energy, staff, insurance and security. Any company that relies on its data (which is nearly every company) and has their servers on premises is vulnerable. Even with backup, a lot can go wrong.

Colocation is a close independent relationship

In a colocation environment, the Data Center provides space, power, cooling and connectivity for your equipment. After that it’s up to you. You provide servers and racks. You manage those servers. You control what happens in your space. Once you “take the key,” the facility staff may never enter your caged space.

But colocation has come to mean much more than that in our global economy.

For companies with a global presence, collocating in a global network is essential to their business. Connectivity and speed are essential to media businesses like Netflix, financial institutions, social media content providers, retail and healthcare. Colocating in a network of Data Centers can provide faster connectivity from local facilities.

Not only that, colocating within a network of Data Centers can help businesses navigate the hurdles of doing business in unfamiliar countries. More on that to follow.

The difference between cloud and colocation

Cloud providers house their servers in Data Centers. They are of course, not actual clouds—those belong to Mother Nature. Cloud providers simply own and operate their banks of servers, housed in Data Centers, and sell space to companies for their applications. They are the subletters. Companies may utilize both Colocation and Cloud.

Benefits of Colocation

Greater Connectivity

Take advantage of more efficient connections through Peering exchanges located in Data Centers
Data centers employ the highest bandwidth speeds possible
A global Colocation network can give you faster content delivery from your local Data Center
The provider can navigate you through local requirements and customs
Access to global IP backbones

Cost savings

More predictable operational costs with a fixed Service Agreement (SLA)
You only pay for your equipment, not the whole Data Center
Take advantage of volume and package pricing
No need to hire staff: security, engineers, and facilities managers
No maintenance costs. It’s included in your SLA

Learn more about the quiet evolution of the Data Center

Increased power and redundancy

Your Network is more redundant with dual power feeds, multiple power connections
A detailed and frequently tested Disaster Recovery plan is in place
Link to standards article
Have a choice of connectivity options with a carrier-neutral Colocation provider

Scalability

Scale to need with a pay as you go model
Use is not always predictable
You won’t pay for space you are not using
No need to hire/fire staff as business grows or slows

Reliability and Uptime

Tier 3 and Tier 4 Data centers have the greatest uptime possible
Disaster Recovery plans are in place and frequently tested and reviewed to ensure stability

24/7 local support

Have access to your equipment
Can use remote hands provided by experienced engineers

Security

Rigid standards are employed
Continually monitored
24/7 monitoring and support are typically included in service plans

Advantages of a global Colocation provider

Jumping the hurdles of doing business outside of your geography is easier when you can see them. Geo-fencing issues are minimized by the inherent knowledge of local Colocation Center staff. They are familiar with the challenges of getting started in new markets. Their expertise addresses things like:

Information privacy mandates
Language capabilities
Regulations and restrictions
Key players in your local area

And like working with your domestic Colocation provider, assistance is a phone call away. Their experts can mirror anything in your first setup with all necessary tweaks.

Cloud definitely has its benefits, but so does Colocation.

It’s not an all or nothing proposition. An experienced Colocation team can advise you on which of your applications can go to the Cloud, and which should be proprietary based on your individual needs and business goals. The move to cloud will not spell the end of Data Centers.

Why own when you can rent?