Colocation Facilities VS Alternatives. The Benefits of Deploying your Company into a Third-Party Data Center


datacenterMany small businesses want to enjoy the benefits provided by an enterprise class IT infrastructure, but cannot afford the cost to construct their own facility to house said infrastructure. Third-party colocation facilities allow these small companies to deploy their own equipment inside a third-party data center. These colocation facilities provide maintenance and support services which include security and a specified amount of network bandwidth and power each month. The service charges incurred by a company are dependent upon these very factors.

There are a number of benefits associated with the use of colocation facilities. In order to better understand what they are, it is imperative to analyze each of these factors and their relation to the overall price.


The first and foremost factor to consider in regards to colocation pricing is that of bandwidth. A normal business DSL line will have a price of about $150 to $200. However, a colocation facility has the ability to provide higher bandwidth at about the same price. Also, colocation facilities have a redundant network structure with multiple connections looped into one. Therefore, if one connection or more connections malfunction, network connectivity remains consistent due to load distribution.

Power Availability

The availability of power is one of the most important factors to consider when setting up an IT infrastructure. Without power that is available 24x7x365, the IT setup of an entire company is rendered useless. A colocation facility is equipped with backup generators as well as UPS units that can cater to power outages. Power distribution lines within the facility are encased in steel structures further enhancing reliability and protection against physical damage. Also, multiple backup generators allow for optimal load balancing in case one or more generators malfunction. Redundancy that is present within every feature of a colocation facility is an extremely important factor.

Convenient upgrade your equipment

Another important reason why colocation pricing is reasonable as compared to other alternatives is due to the convenience of upgrading equipment. Since a company owns the servers, it can easily upgrade to a newer model if the speed or network load capacity of the server is too low. Colocation facilities are designed to cater to every type of server. A private data center is normally designed to house specific types of equipment which makes it difficult for upgrading.

Similarly, the software installed within the server is also owned by the firm itself. Therefore, any software changes or upgrades can be made easily without having to rely on a third party to do it.


Another colocation benefit relates to flexibility. If a company decides to move its headquarters somewhere else, it can remain assured of the fact that its servers will be up and running all the time. Every company utilizes IT within its daily operations and that is why any downtime can result in significant monetary losses.


Consequently, colocation pricing comparison with other similar alternatives is quite positive. Considering the above factors, it does make sense from companies to start shifting from owing private data centers to colocation facilities.