- A colocation provider is a data centre that permits clients to house their servers within its racks, sharing bandwidth.
- Certain colocation providers also offer interconnection services to facilitate edge-to-core digital goals.
In response to data centre closures, consolidations, and migrations, as well as the rise of core-to-edge strategies, organisations are increasingly turning to colocation providers for services beyond the conventional space, power, and cooling.
Organisations leverage colocation services and data centre interconnect fabrics to seamlessly integrate diverse applications, data types, and sources in a secure, reliable, and low-latency manner, which is pivotal for digital business success.
In some cases, data centres are evolving into noncore, remote facilities that handle non-x86 workloads and legacy applications. Certain colocation providers also offer interconnection services to facilitate edge-to-core digital goals.
Understanding colocation providers
A colocation provider is a data centre that permits clients to house their servers within its racks, sharing bandwidth as though it were their own.
Opting to store servers with a colocation provider is often more economical than maintaining them on a client’s premises. In this setup, clients have the freedom to install their own servers and equipment in a rack provided by the data centre. The data centre then supplies an IP address, bandwidth, and power to the server.
Beyond the typically lower cost of bandwidth, firms utilising a colocation provider typically benefit from superior outage protection and enhanced security measures. As the server hardware and software remain the property of each colocation client, they are not reliant on the provider for software installations, upgrades, or critical maintenance.
Some colocation providers extend their services to include management and maintenance of clients’ servers for an additional fee. This can be particularly appealing for those lacking an in-house IT team or for companies based at a significant distance from the data centre.
Also read: Digital Realty launches high-density colocation for AI workloads
Comparative overview of top global colocation providers
- Equinix: Known for its extensive global reach and high uptime, Equinix is a leading choice, particularly for businesses requiring a vast network of data centres.
- Cyxtera: With a strong presence in the US and custom options, Cyxtera is a solid network choice, though it is predominantly North American-based.
- Tierpoint: Offers a large number of data centres, optimized for US and European operations, but may present latency issues for Asian connections.
- Iron Mountain: Recognised for eco-friendly practices and compliance standards, Iron Mountain has fewer data centres but delivers in terms of sustainability and reliability.
- Data Foundry: Ideal for businesses in Texas, with carrier-neutral data centres and onsite expertise, but limited to Texas locations.
- Digital Realty: Offers a global presence with a focus on environmental sustainability and connectivity for mission-critical applications, though it can be among the more expensive options.
- CoreSite: Provides excellent network hardware and interconnection options, particularly useful for cloud and network providers, but lacks data centres outside the USA.
- Flexential: Known for its spread across the US with good national connectivity, suitable for SMBs, but with limited colocation centres.
- CDNetworks: Offers strong presence and connectivity in Asia, making it a top choice for Asian markets, but has limited US locations and may require delegation of IT management.
- DataBank: Provides colocation from multiple US data centres with managed solutions, ideal for businesses looking to delegate IT management, though offering less control over hardware.
These providers demonstrate a range of options to suit various business needs, from global coverage to specialised local services. It’s essential to evaluate how each provider’s unique attributes align with your business’s specific requirements.
Selecting the right colocation provider
By prioritising the following considerations, an organisation can select a colocation provider that best fits its operational and strategic needs, ensuring a successful partnership.
- Business and IT requirements: Organisations should start by evaluating their current and future needs. Understanding the goals for using a colocation data centre, such as cost reduction, disaster recovery, or additional space, is crucial for aligning with a provider that meets these objectives.
- Space and infrastructure needs: Consider the amount of floor space and the number of racks and cabinets required. It’s also important to determine whether the colocation facility will provide these or if the organisation must supply its own.
- Services and amenities: Beyond the basics of floor space, power, and cooling, identify any additional services needed, such as enhanced security measures, high-speed interconnects, or other essential facilities.
- Budget considerations: Colocation costs vary based on space, location, power usage, and additional services provided. Understanding the budget will help in negotiating lease terms and understanding what is included in the price.
- Lease duration: Determine the necessary lease term. While some providers offer flexibility, larger providers may require longer commitments. Longer leases may offer better pricing.
- Physical access: Assess the need for physical access to the facility. Some providers offer ‘remote hands’ services for those without the need for on-site visits, performing tasks like installations and maintenance.
- Technical support: Evaluate the level of technical support required. Ensure the provider can deliver the necessary support for enterprise workloads or for services under their control.
- Data centre location: The proximity of the data centre is key, especially if physical access is needed. Even without physical access, location affects network latency and should be considered carefully.
Also read: Data centre operator Equinix plans $2B sale of Hong Kong stake
Choosing the right colocation provider is a pivotal step that can profoundly impact the performance, security, and growth of your organization’s IT infrastructure. By carefully considering the key factors discussed above, you can make an informed choice that aligns with your unique requirements.
