7 Ways Small Businesses Benefit from Colocation

May 11, 2017 | Colocation

With the ever-increasing number of services available, there are many options to choose from when it comes to setting up IT infrastructure for small businesses. So, why do smaller companies end up choosing colocation? We have seen many SMBs and startups switch over to colocation after carefully weighing all their options, or after finding themselves stuck with skyrocketing cloud bills when their business starts to take off. Here are seven key benefits they reap after deciding to colocate in a purpose-built, carrier-neutral data center.

1. Shared cost of space and equipment

Multi-tenant data centers allow companies to take advantage of economies of scale. Sharing the cost of space and redundant infrastructure with others is more cost-effective than maintaining their own facilities. This allows smaller companies to take advantage of better infrastructure, expert data center operators and strategic locations. With colocation, companies are able to establish data center footprints in populous areas where real estate is expensive. Managing these costs would be unrealistic for many companies on their own.

2. More network and cloud connectivity options

When colocation providers are carrier-neutral, a competitive marketplace develops within their data centers’ meet-me-rooms. Most colocation providers strive to offer their customers as many network options as possible. With several carriers to choose from, pricing is competitive and customers enjoy lower rates. They also take advantage of blended bandwidth services – using multiple carriers at once to ensure 100% network availability. They also provide low-latency, private connections to major cloud providers to facilitate a hybrid cloud model.

3. Expert support and advice

Some colocation providers offer expert advice and a consultative approach for setting up and maintaining a secure and efficient data center footprint. This can be a valuable asset for companies that have limited experience with infrastructure. Many providers offer some form of remote hands services that assist with troubleshooting, hard drive swaps, cabling and part replacement so that companies aren’t required to send personnel to the data center. This and other services offered by colocation providers allow small business to focus completely on their core competencies.

4. Uptime reliability

In an economy where the average cost of downtime is nearly $9,000 per minute, business continuity is essential. For a business whose core services are provided online, downtime can mean going out of business. The reliable power, network and cooling infrastructure provided by a purpose-built data center along with uptime SLAs are paramount for companies whose livelihood depends on online transactions. It also provides peace of mind.

5. Increased security

By using a colocation provider, SMBs gain multiple layers of security around their equipment that they couldn’t afford on their own. Most colocation data centers offer multiple layers of physical security in conjunction with video recording, strict security procedures and security personnel onsite 24x7x365. Some colocation providers hire and train their own security staff, rather than outsourcing to third parties. This is ideal for reasons of accountability.

6. Scalability

Colocation provides companies with a level of scalability they wouldn’t have in their own server room or data center, as it provides the capacity to expand quickly and easily. While the cloud is the most flexible option and can be perfect for a start-up, it’s not always the most cost-effective in the long term. Companies using colocation have greater control over costs and can better estimate IT budgets over time.

7. Efficiency

Purpose-built data centers provide more efficient power and cooling than server rooms established in buildings that weren’t meant to be data centers, allowing companies to consume fewer energy resources.

Data Foundry supports small businesses by providing space for deployments as small as a 1/2 cabinet, as well as a direct, low-latency connection to major cloud providers. To learn more about colocation, visit our colocation page.