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Managed Colocation Services

Why Should Your Business Consider Managed Colocation?

By May 6, 2024No Comments

In today’s fast-paced digital world, businesses of all sizes are finding it crucial to manage vast amounts of data efficiently. With the growing need to ensure data security, maintain high availability, and achieve cost efficiency, many are turning to external data storage solutions. Among the most effective of these solutions is utilizing a data center. Data centers provide the backbone for secure, scalable, and robust data management strategies. They offer a physical space to house your servers and ensure they run optimally with minimal downtime; for businesses looking to enhance their data handling capabilities without the complexities of managing it on their own, managed colocation services stand out as an ideal choice.

Understanding Colocation

Colocation, also known as co-location or housing, varies in terminology across different regions but fundamentally involves the same concept: renting space to host the essential equipment that supports a data infrastructure. While in Latin American countries like Brazil, “Colocation” is the prevalent term, European countries such as Germany, Spain, and Portugal commonly use “Housing.”


Colocation involves outsourcing hardware like servers and networking gear to a dedicated facility instead of an in-house data center. This model offers businesses the advantage of relocating their hardware to a dedicated environment specifically designed for such purposes.

Exploring Colocation Data Centers

A Colocation Data Center, occasionally referred to as a Colocation Center or a ‘carrier hotel,’ is an independently designed, constructed, and operated facility by a specialist provider. This facility is tailored exclusively for the operation of a Data Processing Center.

Businesses outsource server hosting to facilities with racks, cabinets, cages, or rooms, tailored to their needs for infrastructure. Managed colocation services at such a facility ensure the optimal functioning of hosted equipment by offering essential amenities like cleaning and cooling systems to prevent overheating.

Moreover, the architecture of a Colocation Data Center is inherently prepared to accommodate client servers. This includes the provision of data storage devices and sufficient network bandwidth. These centers facilitate connections with numerous telecommunications providers and other network services, enhancing the operational efficiency of the hosted infrastructure.

Additionally, managed colocation services in these data centers come with high-end connectivity, security features, and a redundant power supply. Maintaining such high standards in-house would typically result in significant monthly costs. Therefore, managed colocation services often include an IT support team available 24/7 to handle maintenance, upgrades, and preventive measures, ensuring seamless operation of the servers and associated hardware.

Managed Colocation Services- Partnering for Success

When businesses opt for colocation services, the division of responsibilities between the provider and the client is clearly delineated. Typically, the provider is tasked with furnishing the necessary infrastructure.
This entails ensuring that the facility maintains security, upkeep, and continuous power and internet connectivity without interruptions. This environment allows client-owned hardware to operate efficiently and securely.

Clients, on the other hand, are responsible for their own hardware. If a server or other piece of equipment fails, it is up to the client to repair or replace it. However, ensuring that these systems are properly powered and connected to the network falls to the colocation provider.

With the rise of managed colocation services, the role of the provider has expanded. These services include infrastructure management and direct support for the client’s servers and applications. Managed colocation services deploy specialized teams that oversee the operational health of hosted applications and server hardware, offering a comprehensive management solution that alleviates much of the burden from the client.

Future of Colocation Data Centers

The demand for colocation services is experiencing robust growth, fueled by several key factors. Remote work trends are escalating the need for reliable and scalable IT infrastructure. The rollout of 5G technology is another catalyst, requiring more extensive and stable network frameworks. Additionally, there is a growing consciousness among business leaders and consumers alike regarding the reduction of carbon emissions, which colocation services can support by optimizing energy use across shared facilities.

Managed colocation services are becoming increasingly popular as businesses seek to enhance operational efficiency and security without incurring the high costs associated with expanding or upgrading private data centers. As these services evolve, they also offer the flexibility needed to quickly adapt to changing technology landscapes—a concept referred to as ‘just-in-time infrastructure.’ This approach is crucial for companies looking to rapidly deploy or migrate their IT systems without significant delays.

The importance of having a reliable, secure, and scalable data center continues to drive growth in the colocation sector. Market analysis suggests that the industry will continue to expand significantly, with effectively managed colocation services at the forefront of this trend. Colocation services showcase industry resilience and play a crucial role in today’s digital infrastructure landscape.

Colocation Versus Hosting and Cloud

Distinguishing Managed Colocation, Hosting, and Cloud Services

In the dynamic digital transformation landscape, understanding the foundational technologies underpinning modern hybrid architectures is crucial. Managed colocation services, hosting, and cloud services play significant roles in shaping these infrastructures. Here’s a deeper look into how each of these services supports business growth and operation.

Managed Colocation Services and Hosting

Managed colocation services closely resemble hosting solutions in that both utilize outsourced data centers. Businesses own their hardware in managed colocation but house it in a third-party facility. This setup combines the control over physical servers with the benefits of advanced data center facilities. Managed colocation services are particularly valuable for businesses looking to manage their IT footprint efficiently while still maintaining control over their physical hardware.

Conversely, hosting services simplify the scenario further by not only providing the space but also the necessary hardware and software licenses. This model removes the need for businesses to invest in or manage any physical equipment. Dedicated hosting, a subset of hosting services, ensures clients do not share resources, providing heightened security and performance. Businesses often prefer this service because it doesn’t require upfront capital for hardware but still provides robust IT infrastructure support.

Managed Colocation Services Versus Cloud Services

Cloud services represent a shift from physical assets to virtualized resources, providing infrastructure as a service. Unlike managed colocation services, where the physical presence of servers is required, cloud services operate entirely over the Internet. In public cloud models, sharing resources among multiple users can lead to significant cost savings. However, the private cloud offers exclusivity and enhanced security, albeit at a higher cost.

Managed colocation services offer a hybrid solution between traditional hosting and cloud services. Businesses can leverage a colocation data center’s robust infrastructure while enjoying the flexibility and scalability typically associated with cloud services. This makes managed colocation services an attractive option for companies looking to maintain a balance between cost, control, and scalability.

Optimize Your IT Infrastructure with RACK59

Ready to enhance your business’s data management capabilities? RACK59 Data Center offers premium managed colocation services that provide the perfect mix of security, scalability, and cost-efficiency. Trust us to handle the complexities of your IT needs while you focus on growing your business. Connect with us today to see how our managed colocation services can support your strategic objectives.

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