In a cloud-computing environment, where does data center colocation fit?
Cost is always a major consideration for businesses choosing the right computing platform for its needs. Colocation can be a viable alternative that helps turn costs into value.
Colocation is the system of physically housing customer-owned servers or computer network equipment in a third party data center. Colocation providers rent out space in the form of racks and cabinets, measured in rack units (U) with each rack unit equivalent to 1.75 inches. Most colocation contracts include installation of equipment and the provision of power, bandwidth, cooling systems, and IP address.
When colocation is a viable option
Businesses that need robust bandwidth in-house networks cannot provide are potential colocation candidates. Those hosting database applications, audio and video streaming, online applications, and search engines can also opt for colocation.
Server clusters, load balancing, and redundant hardware are limitations to in-house systems and managed hosting services. Colocation allows the use of multiple servers, dedicated Internet appliances such as load balancers and firewalls, and custom devices that can be interfaced to the public Internet of the colocation provider.
Many colocation services provide hybrid capabilities where customers can have access to various levels of support depending on their needs. Private networks and existing physical infrastructure can be integrated into cloud computing and/or managed hosting environments.
Finally, companies with existing in-house IT teams can co-locate their data centers at third party locations, with their IT teams remotely managing and maintaining their equipment. This helps save on man-hours, power, bandwidth, and cooling costs.
When costs turn into value
Businesses considering the colocation route will want to save on costs. Colocation may not be that expensive if businesses develop a colocation strategy that turns costs into value.
Select a reputable colocation service provider. Businesses should exercise due diligence when researching the service provider’s reputation, facilities, quality and level of service, stability, reliability, support, commitment, and overall ability to meet their present and future needs. More importantly, businesses should consider providers with extensive expertise and tested years in the colocation industry.
Determine real needs. Decision-makers should take time defining colocation goals and how to achieve them with the least cost for value. How much space, storage, and bandwidth does the company actually need now and in the future? Does the colocation contract include fault-tolerant redundancy features or provision for the possibility of changes and the corresponding costs?
Be careful about the add-ons. Businesses don’t need to pay for extraneous services. Some colocation providers will try to entice customers with all sorts of options, many of which are redundant or unnecessary. For instance, management, monitoring, and analytics reporting may be managed by the company’s internal IT staff to save on related fees.
Many critics claim that colocation is more expensive than other options. But if businesses plan ahead, they may not only save on costs, but also turn costs into value.