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3 reasons why your business should consider colocation

Jesse Roche  |  January 25, 2016

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Technology has grown by leaps and bounds over the last few years. It seems like new innovations are coming out every day, each with more benefits than the last. One of these incredible jumps forward has been colocation. Basically, this is where companies bring their own servers to an outside data center and share space – or colocate – with other companies.

Colocation has revolutionized enterprise IT, as many organizations have jumped into this innovation with both feet. In fact, the market surrounding this feat of modern technology is expected to absolutely explode in the years to come. According to 451 Research, the global data center colocation market is projected to be worth around $36 billion by 2017. That’s a huge amount of money for a single service, and simply goes to show how popular this innovation has become in recent years.

So, to bring more exposure to this incredible advancement, we’d like to take some time and discuss the top three reasons why your business should consider colocation.

Colocation is an interesting innovation with many benefits. Colocation is doing a lot for enterprise IT.

1. Affordability

The first – and perhaps most important – benefit of colocation is the cost savings that it can provide to organizations. Servers are absolutely necessary for modern business operations, but their care is incredibly expensive. The electricity used to power them alone is a huge expenditure, not to mention the fact that you need to hire employees to make sure the machines are safe and well maintained.

This is probably the biggest reason why so many companies are opting to switch to colocation services for their computing needs. Although you’ll still have to provide your own servers, sharing space in a single data center means sharing electricity costs. That’s good news for the environment, and it’s also a great way to slim down that budget.

What’s more, colocation providers have highly trained staff on duty 24/7 making sure your machines are kept safe and sound. This frees up your own IT team to work on internal goals and projects, rather than simply paying them to maintain the servers. In a way, you’re paying less money to get more done.

“Average network downtime costs around $5,600 every minute.”

2. Reliability

While saving money is always a good thing, businesses need more than that. Companies need to know that their services will be provided at all times, as the loss of these capabilities can be extremely expensive.

According to Gartner, the average network downtime costs around $5,600 every minute. This makes a lot of sense, considering the importance of connectivity in the Internet age, although that amount of money being lost every minute should be extremely frightening to the average business owner.

This fear of downtime is driving a lot of company leaders into colocation services, and for good reason. Colocation service providers often also offer disaster recovery planning. This means that these companies will be much more prepared than your organization at dealing with a disastrous situation, therefore ensuring the uptime of your mission-critical services better than your company ever could on its own in its own facility.

3. Scalability

Sure, your company may only need a single server right now, but don’t you think that will change as your business grows? The whole point of the American Dream is to start small and eventually work your way up to massive success, but is your company prepared for that?

Scaling up on your own can be incredibly frustrating, as finding the space for new servers is not easy. Your company’s office probably has a finite amount of space, and while growth means more computing needs, it also means more employees. How will you find space for your servers if you have more workers than ever? Once again, this is is where colocation comes in to help save the day.

One of the best parts of colocation services is the fact that you can scale your company’s operations up or down to your heart’s content. Taken on a lot of new business and can’t handle the workload? Just rent more space. Had a bad year and don’t need as much server space? Scale down. Colocation services are almost entirely customizable, allowing your computing operations to grow or shrink with your business.

Colocation really is an incredible innovation. It allows your company to receive the server power it needs, without forcing you to buy space you don’t. If you would like to see what colocation can do for you and your business, contact ISG Technology today. Our years of experience in the field will allow you to leverage this amazing technology to benefit your company.

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Jesse Roche

Jesse's background of 15+ years on the technical and sales sides of SaaS and IaaS helps him construct the perfect, custom cloud, colo, and disaster recovery environments for your business. Adding a business analyst and project management background means he will ensure that any solutions work for both the business and technical sides of your company! At home, he plays with his daughters and son, drives his wife crazy, or relaxes with the game on.
About

Jesse's background of 15+ years on the technical and sales sides of SaaS and IaaS helps him construct the perfect, custom cloud, colo, and disaster recovery environments for your business. Adding a business analyst and project management background means he will ensure that any solutions work for both the business and technical sides of your company! At home, he plays with his daughters and son, drives his wife crazy, or relaxes with the game on.

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