For most companies, licensing space from a data center colocation service provider is almost always a better business and technical decision than maintaining private facilities. The exploding demands placed on IT infrastructure as well as the high operating cost make it difficult for in-house data centers to keep pace. |
Just like when you buy a house or set up a business, location is paramount when selecting a data center colocation facility.
Data center colocation providers often differentiate themselves by offering value-added services. In addition to the required space, power, cooling, connectivity and security capabilities, the best solutions provide several on-site amenities. These accommodations include offices and work stations, conference rooms, and access to phones, copy machines, and fax machines - as well as other many key commercial aspects and factors.
As data requirements balloon, businesses will require more bandwidth and greater network speeds just to keep pace. Operating in an increasingly global economy also involves ongoing access and continuous communications. These growing requirements have made connectivity a major concern for businesses considering data center colocation services.
Many businesses can’t provide the same level of security as experienced data center colocation providers. They just don’t have the necessary resources. Therefore, many businesses opt to use a top-tier data center colocation facility to house their mission-critical infrastructure.
To evaluate pricing for alternative data center colocation solutions, companies need to determine the added value. In other words, how much are they benefiting from the services provided? Is their business operating more efficiently? Is the cost for data center colocation much lower than what the company would pay for an in-house operation?
The factors influencing a competitive price include power usage, real estate, risk mitigation, supply and demand, and redundancy.
Why Colocation Always Merits Consideration
Data center colocation services provide organizations with conditioned space without requiring them to invest capital for new construction. It also allows them to protect their data in the case of emergency by acting as a disaster-recovery location. Data center colocation offers a pay-as-you-grow model that allows businesses to replace capex with a more manageable operational expenditure.
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