Key reasons why businesses choose colocation

According to a study conducted by QuoteColo, 90% of senior executives reported that their data center budgets have been increasing year over year, and Globe Newswire reported in a recent news release that the colocation market is expected to grow at a 15.4% compound annual growth rate between 2016 and 2020.

More and more companies are choosing to move their network, server and storage operations to a colocation site because they can take advantage of the benefits a shared facility offers while maintaining control over their own servers, storage and network. There are a few of the many reasons companies choose colocation.

Reduce Capital Expenses – If a company elects to have its own data center, it must pay to build the facility, buy servers and other necessary equipment and hire a staff to manage it. By using the best colocation site, it can reduce capital expenses because it only has to pay for hardware and software, not the entire storage environment.

Lower Operating Costs – Operating an on-site data center https://www.businessnewsdaily.com/4982-cloud-vs-data-center.html is expensive. You need an IT team to maintain the system, network and databases and take care of upgrades, 24/7 on-site security, and you have to pay power, utility and telecommunications costs. Another factor to consider is you pay these costs regardless of how much storage space and energy you need. So, you could end up paying more than necessary to cover overhead and maintenance expenses. You can reduce operating costs by using a colocation service because you only pay for storage space and energy that you need when you need it. You also pay lower costs for power, bandwidth, IP address, and cooling systems because all are included in your contract. Finally, your IT staffing costs are lower because the data center service provider’s staff manages the facility.

Compliance & Risk Management - Colocation sites offer a higher level of security as well as better availability and continuity. Atlanta data centers include powerful generators and backup power to ensure server uptime in the event of a power outage. The facility maintains an ideal temperature for a server environment and provides redundant power, cooling, and fire suppression. Security resources include guard-controlled entry, and visitor access logs video cameras, individual cage locks, man traps and biometric access. And colocation centers maintain compliance with industry regulations such as HIPAA https://www.datacenterknowledge.com/archives/2012/06/29/hipaa-compliant-data-centers, PCI, DSS, SSAE 16 and SOC.

Scalability – If you have your own data center, it is difficult to grow or shrink your storage environment if your needs change. If you use a colocation service, you can scale your infrastructure up or down if your requirements change and the data center services provider can easily accommodate your needs. In addition, if you move your office location, your data center infrastructure stays at your colocation site.

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Colocation services are approximately 4-5 times less expensive than building and maintaining an on-premises data center. This is why companies are moving their data storage infrastructures off-site.

Colocation sites offer a higher level of security as well as better availability and continuity.