Thursday 20 February 2020

What Every Business Needs to Know About the Costs of Colocation

Server colocation is a great choice for companies that are interested in streamlining their server operations. By leasing space in a data center, companies have the ability to redistribute bandwidth and power costs, while also having the option to have complete control over their data and hardware.

The amount of money that companies save in networking and power alone can be enough to move their servers completely offsite. However, there are other expenses that should be considered before making the decision to do so.

Colocation Pricing Considerations Before you select a provider, there are things that your company should be aware of. Here’s what you need to know:

1. Hardware
When you’re paying for colocation hosting, you’re not paying for the “rent” on a dedicated server machine. This means that you’re using your own company’s equipment, which creates the need for you to purchase your own hardware.

2. Costs Per Rack
The pricing of colocation heavily depends on the required physical space that’s rented out. The physical space that is rented out has two different ways that it can be measured: in space per square root or in rack units (U).

3. Setting Up
The standard colocation host has a Service Level Agreement (or SLA), which means that the hosting company assumes that you’re going to deploy equipment by yourself. However, there are some providers that will provide with you hardware deployment onsite and remote hands if needed.

4. Blending Your Bandwidth
One of the biggest benefits that colocating has to offer is providing users with the ability to directly connect to an Internet Service Provider. This means that if your main location is in an area that’s limited to 40 Mbps connection, data centers have the ability to directly connect with the Internet Service Provider to get thousands of more megabits per second!

5. Location, Location, Location
The location that your company resides in can drastically affect the pricing you’re paying for colocation. For example, if the data center resides in an urban area, real estate in the area is bound to more expensive. The cost of the property that the data center is using is rolled down to you.

The most important thing that you should take away is that colocation hosting should match what your business is in need of. Make sure that you take the time to learn about a provider before signing up. Get a thorough understanding of how the colocation host runs its data center.

The majority of the colocation pricing is transparent and easy to understand, such as leasing fees and power rates. However, make sure that you take in the other factors that aren’t as obvious, such as the risk of high latency or potential downtime.

If you’re looking to learn more about colocation pricing and how your business could benefit, feel free to contact us today for a custom quote.