Colocation, the practice of renting space from a third-party data center, has grown in popularity over the past few years. Businesses can rent a mix of hardware, services, and software. Market research firm IDC predicts that by 2018, companies will have 65% of their IT assets hosted off-site, and 33% of their IT staff will actually be third-party employees.

With colocation, businesses can switch to operating expense models instead of the more expensive capital expense budget. This is the main draw to renting space from third parties, but there are other things to consider when making the decision to rent, including:

• Business continuity
• Disaster recovery
• Location
• Pricing
• Security

Business Continuity and Disaster Recovery

Colo has no distinct advantage over an in-house solution when it comes to business continuity and disaster recovery, but it should still be an important consideration when choosing a colo provider. Wherever the colo center is, the provider should have a plan in place to ensure uninterrupted service and recovery in the event of a natural disaster, including frequent testing and tweaking to keep everything up to date.

Location

Because data will be hosted at least partly in a physical location, businesses must look at exactly where that location will be. It needs to be close enough to a power source and somewhere that IT staff can easily access, and it should also be somewhere that’s unlikely to be hit with natural disasters like hurricanes and earthquakes.

Pricing

Switching to colocation can help businesses save money through usage-based pricing. Colo can even help reduce electricity costs by up to 40%, according to the National Resources Defense Council. However, when looking for the right facility, be aware of any hidden costs and monthly fees. This can include bandwidth, hardware maintenance, and support services.

Security

Using colocation means that sensitive data may be hosted outside the organization, away from the security measures put in place to protect it in-house. Not only should the provider ensure that only authorized personnel can access the facility, but they should also have monitoring in place so that if there is a breach, they are alerted as soon as possible.

Switching to colo can be a big change for any business, but by considering these factors, businesses can have peace of mind and the assurance that they are reducing their budget and improving their efficiency.