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Which is more Cost-Effective: In-House Servers or Colocation?

The debate on whether outsourcing your data center is a more cost-effective option than maintaining a private data center is very relevant and deserves to be addressed. For the smaller businesses, maintaining their own data centers may turn out to be a very costly proposition. They prefer to shift their servers to someone else’s rack space while the larger businesses can afford to build and maintain their own private data center. When you choose colocation, it is like choosing an all-inclusive plan where the provider will offer you the hardware and equipments, network connectivity, bandwidth, cooling and air-conditioning systems, security and support.

Finding out whether colocation or an in-house data center is a better option:

• As far as connectivity costs are concerned, you will realize that the reputed colocation hosting providers have data centers which are carrier-neutral. This means that network connectivity will never fail. The smaller businesses typically must sign up with one carrier, regardless of what the charges are. You may however require higher data transfer speeds but there are providers which may not be able to guarantee high bandwidth. To avoid bottlenecks from occurring you will find that colocation is a better option because a residential connection will not suffice in such cases.

• You will need rack space for your servers and enough storage area for the hardware. You will also need uninterruptible power supply backed up by very powerful generators to take care of outages. Businesses will also need other arrangements like battery backup for their routers and switches so as to avoid downtimes. When you maintain an in-house data center, you will need climate controlled environments. This can be guaranteed through various air-conditioning systems which have to stay independent so that they do not get affected when there is a shutdown. Moreover, these units should be situated far away from possible leaks and condensation. This amounts to high maintenance costs when you are planning on owning a private data center.

• As far as security goes, in-house servers are usually kept in climate controlled locked rooms which can be accessed by only a handful of people. Ideally, there should be multiple security layers for protection of sensitive client data through alarm systems, CCTV cameras, on-site surveillance and biometric scanners. Besides physical security, you will need robust arrangements for virtual security. For this, you need effective firewalls to safeguard the network from cyber attacks and hacking attempts. The numbers of DDoS attacks each day is constantly on the rise and this amounts to huge losses in revenues. A colocation provider can take care of security arrangements for you by introducing many security layers for proper data protection against possible breaches. There are measures like 24×7 CCTV monitoring, bulletproof mantraps, physical fencing with dual-factor authentication etc. When a business must conform to HIPAA rules, such security measures can ensure smooth compliance.

• Colocation is also cost-effective compared to in-house servers because it allows businesses to scale up and down their resources according to demands. You can easily adjust the amount of bandwidth or server space you need and pay only for what you are using. So, you do not have to spend a fortune of building new facilities.

• When you have an off-site data center, your data is protected even if there is an outage. This means that there will not be any downtimes and no data loss as a result. The co-located equipments will continue to run because of the colocation provider’s redundant network connectivity and redundant power supplies.

• Colocation appears to be a far better choice for saving costs because it gives businesses a predictable model for their operational costs. It can lower management costs and guarantee higher stability. Colocation will do away with upfront costs which are needed to build any new facility. When you have your own data center, it is necessary to keep pace with advanced technologies for enhanced site performance. Besides, businesses will also need to spend for backup generators, UPS or uninterruptible power supplies, network connections etc which can now be handled by the colocation hosting provider. This cost savings helps businesses to allocate these funds in other areas while their servers are maintained in a state-of-the-art secure facility.

• Finally, with expert assistance, troubleshooting of server related problems becomes easier and faster. The colocation host will provide remote technical supports for the operating systems, hardware, network equipments etc and your in-house IT teams can then concentrate on other tasks for development of the business. They will not have to worry about the day-to-day maintenance of the servers.

These arguments suggest that colocation is perhaps a better choice for the small and medium sized businesses which do not have the funds to maintain a private data center. For them, it is economical to spend money on buying colocation hosting solutions.

Growing Acceptance of Server Colocation Services

Every organization hopes to achieve the desired business output in the most cost-effective ways.  Therefore, they must evaluate as well as analyze the pros and cons of every step they are taking regarding their business functions, be it their core business strategies or their IT models.  One of the most common questions that pops up in mind while deciding IT model of your business is whether you should build your own data center and/or whether seeking assistance from reliable service providers is a better option.  While organizations across the globe keep pondering upon what could be the most ideal solution for their IT models, and experts always suggest them to prefer outsourcing this to specialized providers. That’s where server colocation comes into picture.Server Colocation Services

Colocation center is a type of data center where space, bandwidth, and other requisite IT resources are available for various companies and customers.  These companies can rent those for their use, on as-required basis.  Server colocation facilities offer power, security, and space for networking equipment and servers of companies at much lower cost.  Moreover, these can also be connected to multiple telecommunications and network service providers.  At present, there are plenty of data center providers across the world, Server Colocation Serviceswhich offer safe and secure facilities to organizations, irrespective of their sizes.  There are multiple benefits of leasing space at these data center facilities.  Therefore, businesses across the globe prefer not to build their own data center, and they search for reliable service providers for the same.  Businesses work hard to achieve the solution which can guarantee them maximum uptime for their databases and/or applications and help them in aligning IT resources with business priorities.  In this circumstance, Server Colocation Services have emerged as the most idyllic solution. There are plenty of reasons that have compelled organizations to look out for this viable alternative.

Let’s discuss some of the most beneficial aspects of Server Colocation Services.

Colocation is Cost-Effective: For organizations which aim to cut down its operational cost, colocation service is the most cost-effective option.  It facilitates multiple organizations to share technologically-driven infrastructures as well as guarantees them higher bandwidth and internet connectivity.  All these can be achieved at much lower cost with the help of colocation service as all the cost is shared among all the organizations which have availed the service.

Colocation is Safe: The service providers ensure organizations that their data center facilities are equipped with robust security measures.  This helps organizations in keeping their IT assets in safe and secure environment, so that they can keep all the issues related to thefts and loss at bay.  Moreover, these service providers also ensure that their facilities have strong and efficient environmental controllers.  This helps organizations to minimize all the ill-effects of natural disasters, such as flood, fire, and hurricanes.

Colocation is Transparent: This is one of the most beneficial aspects of colocation service, and this attribute of colocation service attracts many organizations across the globe towards web service hosting.  It is because of transparency that various complicated issues regarding performance, reliability, and security can be resolved in the most efficient ways.  On top of it, server colocation is the most convenient way as it ensures sigh of relief against every possible security threat.

Colocation is Scalable: As different organizations can have different business specifications and/or business requirements, they must be facilitated with the option of optimizing the configuration of servers. Colocation gives complete freedom to its owners to conveniently develop and/or mange applications by optimizing or scaling down the configuration of server depending upon their business needs.  That’s why, it is recommended to opt for a vendor that maintains a scalable architecture that not only fulfills your current requirements, but also the future ones.

Flexible provisions: Data center providers offer flexible provisions for businesses so that they can buy or rent additional capacity on as-needed basis.  Organizations often face the issues when it comes to increasing the capacity of their data centers depending upon their varied business requirement.  By availing the services from reliable providers, those issues can be resolved efficiently as service providers facilitate organizations with the choice of upgrading their capacity as and when required in the most economical ways.

Experienced professionals: The service providers have pool of efficient and experienced professionals.  The leading benefactors employ qualified engineers and certified technicians so that all the technical issues can be resolved efficiently.  These professionals are available round-the-clock for clients and customers to help them if any technical fault occurs.  Moreover, these service providers also train them comprehensively regarding the implementation of various cost-effective technologies and tools.  By availing server colocation services from these professionally trained engineers and technicians, businesses can also enhance their performance expediently.

Enhanced operational efficiency: If a business firm plans to build its own data center, it would be compelled to invest hefty amount of resources and energy.  Moreover, it would also be burdened with the tasks of hiring specialized professionals as well as training them according to their business needs and norms.  All these expenses can be conveniently cut down by seeking assistance from trusted service providers.  Businesses can use these saved energy and resources for various functions.  This would further help organizations in enhancing their overall operational efficiency.

Considering the benefits of availing server colocation services, businesses can rely upon this alternative for better growth at reduced prices.  Colocation adds agility and security to business functions, besides providing adept support for various business related applications.