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Business needs change and technology is constantly evolving. Business owners are continually rethinking their IT strategies to meet customer needs. Making colocation part of your overall IT strategy provides a cost-effective option tailored to your business and its growth.
Colocation can provide peace of mind with an effective alternative to on-premises data centers. Knowing more about colocation and how it works can help you make strategic decisions about whether it's right for your business.
Colocation services are shared, secure environments businesses can use for storing hardware and network connectivity. Colocation services — also known as colo — often provide the building, power, physical security and bandwidth, so as the customer, all you need to do is provide the servers.
In addition to the abovementioned features, colo services can provide your business with a connection to network and telecommunication service providers with minimal cost and complication. Instead of building, maintaining and updating your own data center, a colo allows you to rent space in the facility to suit your business needs. Many colos also offer optional extras like managed services.
In essence, your business can rent a physical space and colocate in a third-party data center instead of keeping your servers in-house or renting a private data center. You purchase your equipment and pay the colo provider for the space and resources in the third-party data center. Often, you're responsible for configuring and maintaining your server, which allows you to maintain control of all the server settings.
One of the many reasons you choose colocation is to move away from traditional in-house hosting but retain the flexibility of managing your equipment. Many colo services provide constant IT support, so you can be confident your business will continue to run smoothly. You can rent the space based on your current requirements and scale up when needed.
Colocation services can provide several benefits for your business, including the following:
A colo data center is a secure physical location storing your servers and other equipment. Over the years, these centers have become increasingly more accessible for businesses of all sizes, with customizable services to suit various business needs. Each data center offers different services, but some of the primary benefits you can expect include the following:
The three main types of colocation centers include the following:
Choosing the type of data center depends on your unique business needs. Discussing your options with an expert before making your final choice is best.
For many businesses, colocation provides more options than traditional housing methods. Small to medium enterprises (SMEs) can significantly benefit from what colocation services have to offer. Colocation services save you money and provider a greater return on investment (ROI) for the equipment you buy. Some other differences between the two methods include the following:
A colocation service agreement is a legal contract between providers and customers. It outlines the conditions of your tenancy, each party's responsibilities and the costs of the agreement. The contract is for a specific term, during which the provider will grant your business tenancy of a predetermined amount of space in the colocation center. Depending on the agreement, you'll likely have the option to scale your space as your business expands.
Getting the best arrangement possible for your business is essential, so choosing a colo center that can meet your requirements and negotiating a mutually beneficial service agreement is necessary.
As each business has unique needs, and colo service providers offer a range of optional services, many portions of a colocation service agreement are up for negotiation. As the signed agreement is legally binding, you and your service provider must be completely happy with it before you sign. Keep the following tips in mind for a mutually beneficial agreement:
Colocation has incredible benefits for businesses of all sizes, so if you're considering the flexibility and cost-effectiveness of colocation for your business, trust US Signal to guide you through the process. Our 24/7/365 technical operations center supports each of our data centers, so we're always available to answer your questions and appease any concerns.
If you want to learn more about US Signal data centers, visit our resource center for more information. Alternatively, please reach out to us, and let us help you achieve your business objectives today.
To learn more about data management, check out these articles below from our blog or visit our resource center for whitepapers, e-books and more!
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