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What is Co-location?

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Modern businesses must ensure their IT infrastructure is robust, secure, and scalable. Co-location services have emerged as an effective way to achieve this goal, allowing organizations to maximize value and performance alike. We’re taking a closer look at what co-location services are, their key benefits, and what you need to know to choose the best co-location provider for your business.

Overview of Co-location

Co-location, often referred to as “co-lo,” is a service where businesses rent space for their servers and other computing hardware in a third-party data center. By co-locating, companies place their equipment in a facility designed to handle the high demands of IT infrastructure. The hardware is connected to the co-lo site’s power and network services and benefits from redundant and highly available internet connectivity, but the client remotely manages it. As a result, the primary benefit of this setup is that it empowers companies to leverage the data center’s infrastructure while maintaining control over their own hardware and software.

There are generally four key components of a co-location facility:

  • Physical space: The provider’s data center offers a specifically designed space for all relevant IT hardware, prioritizing reliability, and organization with elements such as cabinets, racks, and cable trays.
  • Power source: Depending on the specific facility, you will typically find various backup power systems or uninterruptible power sources.
  • Cooling services: Co-lo facilities utilize specialized cooling systems, including chiller set-ups and HVAC systems, to prevent hardware from overheating.
  • Physical security: Most facilities implement extensive security protocol, including 24/7/365 surveillance, biometric authorization, and on-site security professionals.

How Does Co-location Differ from Cloud Hosting?

Co-location and cloud hosting are both solutions for managing IT infrastructure, but they differ significantly in both their approach and execution. Let’s take a closer look at some of the differences between co-location vs. cloud hosting:

Ownership and Control

  • In co-location, businesses own and maintain their software and hardware, which is housed in a third-party data center. They have full control over their physical servers, including hardware configurations and software installations.
  • With cloud hosting, the service provider owns and manages the physical hardware. Businesses rent virtualized resources (such as virtual machines) and have control over the software and applications they run, but not the underlying hardware.

Infrastructure Management

  • Co-location requires businesses to handle their hardware maintenance, upgrades, and troubleshooting. They benefit from the data center’s power, cooling, and security, but they are responsible for their equipment.
    On the other hand, cloud hosting providers manage the physical infrastructure, including maintenance and upgrades. Businesses using cloud hosting focus on their applications and data, relying on the provider for hardware and infrastructure management.

Scalability

  • Co-location provides physical space and power, but scaling requires purchasing and installing additional hardware.
  • Cloud hosting offers impressive scalability and flexibility. Resources can be easily scaled up or down based on demand, and businesses pay for what they use.

Cost Structure

  • Co-location involves upfront costs for purchasing hardware and ongoing expenses for renting space, power, and network connectivity.
  • Cloud hosting typically follows a pay-as-you-go model, with costs based on resource usage. This can make cloud hosting more cost-effective for businesses with variable workloads or those looking to avoid large capital expenditures.

Location Dependency

  • Co-location requires businesses to choose a specific data center location, which can impact latency and performance based on the site’s proximity to the users.
  • Cloud hosting providers offer multiple data center locations worldwide, allowing businesses to deploy their services closer to end-users, improving performance and reducing latency.

As you can see, there are key distinctions when it comes to comparing co-location vs. cloud hosting . Ultimately, the choice between the two depends on your organization’s specific needs for control, scalability, cost, and location.

What are the Benefits of Co-location?

Co-location services provide a variety of valuable advantages that can support a wide range of business objectives. This section will go into more detail about these benefits.

Cost Savings

Co-location reduces the need for the large capital expenditures involved in building and maintaining an in-house data center. Businesses can leverage the provider’s infrastructure, avoiding the high costs associated with facility construction, power, cooling, and security. This cost-effective solution allows companies to allocate resources more efficiently and invest in other strategic areas.

Enhanced Security

Co-lo facilities typically offer outstanding physical and digital security measures, often surpassing what businesses can afford in-house. These data centers feature advanced security protocols, including biometric access controls, 24/7 surveillance, and fire safety systems, ensuring that your critical data and hardware are protected against unauthorized access and physical threats.

Reliability

Using co-location services allows an organization to benefit from high availability and uptime with redundant power supplies, cooling systems, and network connectivity. Data centers are designed to handle power outages and equipment failures, providing businesses with reliable, continuous operation. This is an essential feature for maintaining business continuity and minimizing downtime.

Scalability
Co-location offers the ability to easily expand infrastructure as business needs grow. Businesses can simply rent additional space and power from the provider as required, allowing them to meet increasing demands without the potentially long delays and high costs associated with building new infrastructure.

Improved Connectivity

Organizations using co-location will also gain access to multiple network providers, delivering high-speed and reliable internet connectivity with reduced latency. Data centers are strategically located and connected to major internet backbones, offering businesses enhanced performance and the ability to choose the best connectivity options for their needs.

Focus on Core Business

Co-location allows businesses to better concentrate on their core operations. By offloading the management of power, cooling, and security to the provider, businesses can dedicate more time and resources to developing and improving their products and services.

Disaster Recovery

Co-location also enhances disaster recovery capabilities with geographically diverse data centers and excellent backup systems. By co-locating in multiple locations, businesses can ensure that their data is protected from local disasters and can be quickly restored if needed, minimizing the impact on operations.

Compliance and Certification

Co-location facilities can help businesses meet regulatory and industry standards with relevant certifications. These data centers often comply with standards such as ISO, HIPAA, and GDPR, assuring businesses that their data storage practices align with legal and industry-specific requirements.

Technical Support

Co-location offers access to on-site technical support and expertise, which makes it easy to get help with hardware issues and maintenance. Data centers employ skilled technicians who can offer immediate help, reducing the time and effort needed to resolve technical problems and ensuring that systems run smoothly.

Environmental Control

With advanced cooling and climate control systems, co-location facilities achieve optimal operating conditions for hardware. These facilities are designed to maintain ideal temperature and humidity levels, preventing overheating, and ensuring that equipment performs efficiently and reliably over time.

Factors to Consider When Selecting a Co-location Provider

It is important to choose the right co-location provider that will properly support your IT infrastructure’s security, reliability, and scalability—both now and in the future. When evaluating possible providers, keep these factors in mind:

  • Location: Proximity to your business can reduce latency and improve performance. Assess the provider’s geographic location and how it fits into your disaster recovery and business continuity plans.
  • Security: Inquire about the provider’s physical and digital security measures. Look for features such as biometric access controls, 24/7 surveillance, and excellent cybersecurity protocols to protect your data.
  • Reliability and Uptime: Check the provider’s track record for uptime and their redundancy measures for power, cooling, and network connectivity. A reliable provider should offer at least a 99.99% uptime guarantee.
  • Scalability: Ensure the provider can accommodate your growth with options such as flexible space, power, and connectivity options.
  • Compliance: Verify that the provider complies with relevant regulatory standards and certifications (e.g., ISO, HIPAA, GDPR), so you can be confident that your data handling practices meet industry and legal requirements.
  • Support Services: Assess the level of technical support on offer, opting for a provider with 24/7 on-site support and a team of skilled technicians to assist with maintenance and troubleshooting.
  • Connectivity Options: Look for a provider that offers diverse connectivity options with multiple carriers, which can improve network performance and provide redundancy to avoid single points of failure.
  • Cost Structure: Understand the pricing model and ensure it aligns with your budget. Consider not only the initial costs but also the ongoing expenses for power, connectivity, and additional services.

Customized Co-location Services to Support Your Goals

Co-location offers a strategic advantage for businesses seeking reliable, secure, and scalable IT infrastructure solutions. By leveraging the advanced facilities and services of a co-location provider, companies can optimize their operations, enhance connectivity, and focus on their core business objectives. Working with a skilled co-location provider can be an excellent way to support your company’s growth and success.

I hope you found this information helpful. As always, contact us anytime about your technology needs.

Until next time,

Tim

Meet the Author
Tim Burke is the President and CEO of Quest. He has been at the helm for over 30 years.
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