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What 6 Pros Do Colocation Services Offer Modern Businesses?

By May 20, 2024No Comments

In an era where data is as valuable as currency, businesses strive to maintain their operations smoothly and efficiently. Ensuring data is secure, accessible, and sustainable is no small feat, especially with ever-evolving technology requirements and economic pressures. Many companies find that managing their own data centers is becoming increasingly challenging and less cost-effective. As businesses look for robust solutions to keep their operations agile and resilient, one standout strategy is gaining traction. Here, you’ll understand why colocation services are becoming a cornerstone for modern enterprises.

Defining Colocation Service

Before delving into the advantages of colocation services, let’s clarify what colocation entails and how it contrasts with on-premises hosting. Colocation involves leasing space at a third-party data center for your servers and network equipment. This arrangement typically covers the costs for physical space, networking, security measures, redundant power and cooling systems, and professional maintenance. Conversely, on-premises hosting means all hardware is managed on-site by your teams, encompassing everything from security to infrastructure maintenance.

Benefits of Enhanced Redundancy and Business Continuity

Colocation services are designed to provide critical redundancy and continuity measures that ensure operational resilience. These services come equipped with multiple fail-safes against potential disruptions:

  • In the event of a power failure, colocation facilities immediately activate backup power systems to maintain the uninterrupted operation of hosted servers and networks.
  • Staff are present around the clock at data centers, ready to address urgent issues as they arise.
  • Facilities are constructed to endure extreme weather conditions, featuring redundant power generators and cooling systems and, in some cases, access to separate power grids for enhanced reliability.

The commitment to redundancy and uptime is a hallmark of colocation providers, often highlighted as a key reason for businesses to select their services. It acts as a form of insurance: while companies hope they never need these emergency measures, they can rest assured knowing they are in place.

Conversely, setting up similar redundancy measures on-premises can be prohibitively expensive. It involves securing reliable local utility access, suitable networking options, and robust infrastructure, including power and cooling systems. Additionally, it requires hiring skilled personnel available for on-site or on-call duties and potentially incurring construction costs to bolster structural integrity against severe weather.

Choosing colocation means not having servers within one’s premises but enjoying the security of knowing that all critical continuity needs are professionally managed, allowing businesses to avoid the hefty investments and logistical challenges of building such infrastructure independently.

Flexibility Through Scalable Resources

Another significant advantage of colocation services is their scalability—this refers to the ease with which businesses can modify their server and service capacities over time.

Proactive Monitoring: In colocation facilities, the data center staff actively monitors power and network connectivity for your server environment. They often alert clients preemptively if there’s a need to scale up resources due to increased demand.

Rapid Expansion Capability: Should your business suddenly need to expand—say, due to a new contract resulting in hiring many employees—colocation services enable quick scalability. Facilities allow you to efficiently utilize additional space to accommodate new hardware, employing the ‘stack ’em, pack ’em, and rack ’em’ method.

Service Addition and Customization: Colocation allows for the addition of new services to meet evolving compliance requirements or the specific needs of expanding teams. This level of customization is a significant draw for businesses opting for colocation, offering tailored solutions as opposed to a one-size-fits-all approach.

Cost-Effective Upgrades: With traditional on-premises hosting, expanding server capacity can be restrictive. Once server space is maxed out, not only is new hardware required, but additional expenditures on power and cooling systems must also be considered. This can translate into substantial costs.

Internal Capability Building: Adding new services in an on-premises setup often falls on the internal IT team, requiring them to upskill or hire specialists with the necessary expertise to manage new or upgraded systems. This can be a slow and costly process.

Ensuring Security and Regulatory Compliance

Essential Protection and Compliance: Ensuring data security and compliance is crucial to avoid regulatory penalties and maintain ethical standards.

Superior Security in Colocation Centers:

  • Advanced security measures exceed typical business capabilities.
  • Features include multi-level security, biometric access, and restricted data access areas.

Comprehensive Compliance Standards: Colocation facilities align with major standards like SSAE 16, ISO 27001, HIPAA, and PCI DSS.

Cost and Complexity of Self-Hosting: Implementing full security protocols in-house is expensive and complex.

Gaps in immediate implementation can expose risks.

Certification and Audit Readiness: Colocation services provide the infrastructure and security needed for passing audits and achieving certifications.

Dependable Support Around the Clock

Colocation services ensure that expert assistance is always available, regardless of the hour, providing vital 24/7 support. This round-the-clock support is crucial for handling IT disruptions that can occur outside normal business hours, particularly when global clients and prospects may interact with your digital platforms during off-peak times. Here are the key aspects of this benefit:

Immediate Professional Assistance: Colocation facilities staff their sites with certified professionals ready to address any issues as they arise, ensuring rapid response to emergencies.

Continuous Operation Assurance: While you hope for smooth operations, it’s reassuring to have continuous support. This is similar to the peace of mind provided by redundancy in power and data storage.

Alternatives to On-Premises Staffing: Hosting your servers in a colocation facility can be more efficient than the alternatives, which include:

  • Employing a full-time team to physically monitor your infrastructure around the clock can escalate operational costs.
  • Allowing remote access for your team to manage the infrastructure from home potentially increases the risk of security breaches.
  • These points emphasize the strategic advantage of leveraging colocation for dependable support, ensuring your business maintains high availability and security without the significant costs and risks associated with other methods.

Strategic Cost Management

When evaluating the financial advantages of colocation services, the calculation is straightforward. Opting for colocation provides a comprehensive suite of benefits:

  • Established infrastructure and protocols ensure redundancy and continuous service.
  • The flexibility to expand resources rapidly as demand increases.
  • Robust physical and digital security measures.
  • Rigorous controls and procedures that align with various data compliance standards.
  • Constant availability of on-premises support to address issues immediately.

Furthermore, by leveraging colocation services, your IT staff can redirect their focus from routine infrastructure maintenance to advancing core business projects and innovations.

Choosing to manage your data center operations in-house involves significant expenditures. You would need to invest in developing the infrastructure, security, and compliance measures already set up in colocation facilities. This approach is not only costly but also diverts resources and attention from essential daily business activities.

Boosting Market Presence

Leveraging colocation in OKC transcends just operational benefits; they serve as robust selling points during sales discussions, on your digital platforms, or within marketing collateral. Here’s why positioning colocation as a cornerstone of your strategy can enhance your company’s appeal and trustworthiness:

Availability and Security: By partnering with a professional colocation provider, you underscore the prioritization of data management and security within your operations. This reassures clients that their data is accessible and protected at all times. Prospective clients can independently verify the standards of the data center, adding an extra layer of assurance and transparency.

Trust and Credibility: Utilizing colocation services inherently signifies that you value your clients’ best interests. The annual accreditations, certifications, and audits that colocation facilities undergo not only reflect compliance with high standards but also enhance your company’s credibility.

Marketability and Cost Efficiency: Hosting IT infrastructure in-house without colocation entails significant costs and responsibilities:

  • Establishing redundancy and continuity measures.
  • Acquiring essential servers, networking, and computing equipment.
  • Implementing stringent security protocols and achieving necessary certifications.
  • Ensuring round-the-clock support with a sufficiently staffed IT department.
  • Training IT personnel to manage and execute all necessary functions effectively.
  • Without these investments, companies rely solely on their assurances to convince clients of their capabilities, lacking third-party validation.

Ready to Enhance Your Business Infrastructure?

See how RACK59 Data Center can transform your business operations with premium colocation services. By choosing us, you ensure your servers and critical network hardware are managed professionally with top-tier security, redundancy, and scalability. Step into the future of business efficiency and reliability—partner with us for colocation services that go beyond just space rental.

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