Advantages of Data Center Colocation

In today’s fiercely competitive environment, any business – small, medium or large – can succeed only if it maintains business continuity, which in turn, is mostly dependent on automated data handling systems. In the wake of recent natural and other calamities, companies have increased their investments in highly secure storage and retrieval systems for their data.

For companies whose core business is not IT, it makes better business sense to outsource the storage and maintenance of these systems. This strategy allows them to save time and money while harnessing the power of IT as a force multiplier for their core business.

What is a data center?

A data center is simply a room that facilitates the storage and management, of servers and other computing equipment of any company in a precision-controlled environment. But for small and medium businesses, an in-house data center is an expensive proposition in many ways:

  • High initial investment in space and equipment
  • High day-to-day
    management costs
  • Hiring and retaining personnel to maintain
    the data center
  • High cost of upgrading technology and acquiring
    newer services

In this scenario, it becomes far more economical to outsource this service to a colocation data center.

What is colocation?

A colocation (also known less popularly as ‘co-location’) data center is a facility where the servers and other computing equipment belonging to different companies share space. Each company’s equipment is physically secured in a wire cage or cabinet with high security locking systems.

Why colocation?

Colocation offers businesses several advantages with regard to time and money.

  • You don’t have to worry about recurring capital costs if you
    are upgrading since you can rent more space (or give up space if you are
    downsizing)
  • You are saved the expense of hiring and training
    your own personnel to operate and maintain your systems. If you have to
    upgrade, having your own personnel means additional training costs or paying
    outside consultants.

Who uses colocation data centers?

The answer is: almost any company whose business continuity is dependent on smooth access to flow of data and for whom system downtime is not an option.

  • Web-based e-commerce companies use the colocation data center facilities
    to ensure a safe environment for their equipment, plus economical and redundant
    connections to the Internet
  • Major non-IT entrepreneurs use the facility for economic data storage and
    management, as well as safety from disasters
  • Telecommunication companies use colocation data center facilities to exchange
    traffic with other telcos and also to provide reliable access to potential
    clients

Facilities at Colocation Data Centers

Colocation data centers offer physical space on lease to customers for housing their servers and other computing devices. You install your servers and/or other telecommunication equipment in the physical space leased from the data center. The leased space is typically comprised of either full cabinets or portions of a cabinet measured in Rack Units or RU (1RU corresponds to 1.75 vertical inches of space). Much larger spaces, like a caged section of a room or complete private rooms or suites, are also available depending on your requirements.

All leased space is supported by:

  • Precision-controlled air-conditioning systems
    with incorporated redundancy
  • 24×7 power back-up systems for all equipment to
    ensure zero downtime or minimal disruption in operations due to power failure
  • High-capacity, reliable power generators
  • State-of-the-art fire detection and suppression systems to guard against
    potential losses due to fire
  • Sophisticated onsite security through surveillance cameras and advanced
    biometric systems to prevent unauthorized entry
  • Networking equipment including state-of-the-art, fully redundant high-end
    switches and routers, BGP4 routing for optimal path selection and full redundancy,
    etc

Most colocation centers also offer SLAs (service level agreements) to support a host of computer and networking services like server reboots, software updates, hardware repairs / replacements, disaster recovery, etc.

Advantages of colocation

  • Financial Gains: Small and medium companies have a lot
    to gain by opting for colocation. For one, there is an enormous amount of
    money to be saved (between 25%-75%) on infrastructure, technology and human
    resources. This leaves them free to concentrate on their core business areas.
  • Better Connectivity: Acquiring and maintaining a T1 line
    or a fiber optic line to connect your networks is an expensive proposition.
    Moreover, if your ISP turns out to be unreliable, you could lose valuable
    business. Provisioning a T1 or fiber optic line at a colocation data center
    is economical and most centers support multiple ISPs through fiber optic
    lines or VSAT. Also, colocating mission critical servers at data centers
    with fully redundant network connections ensures that business critical applications
    will always run smoothly.
  • Easy disaster recovery: Data centers also create disaster
    recovery sites. In the event of a snag with the primary server, the entire
    network automatically switches to an alternate mirrored site within a few
    minutes. So outsourcing disaster recovery also costs much less than what
    it would to set it up in-house.
  • Improved Network security: Most data centers offer state-of-the-art
    network security, including fully updated firewalls / IDS applications to
    detect and prevent unauthorized intrusions into their clients’ systems. They
    employ qualified technical personnel with certifications like CCNA and MCSE
    to monitor the networks 24X7 and alert clients of any potential trouble.

In the wake of disasters like 9/11 and other natural disasters, depending on a single office to keep business-critical applications running is risky. Most companies are now taking steps to plan for such events by implementing a disaster recovery plans that include colocation facilities inside internet data centers. Data centers provide the best data management, system maintenance and up-to-date security services without the issues that accompany owning and operating a similar facility.

By utilizing collocation services in a data center facility, you will realize an immediate benefit in terms of costs saving and improved redundancy.

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