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Before we start explaining what a colocation data center is, what is colocation?

 

Colocation, “co-location”, is meant the placement of the servers and important equipment from different companies into one data center. Although the hardware still is owned by the company, they are stored and maintained by the data center.
The word colocation also refers to placement in multiple locations. What we mean by this is that a company can have its servers in more than 1 data center. Suppose you have an international company; therefore, it is surely important for you to have your computer systems nearby.

 

Now that we know what the word colocation means, lets go into detail and explain about colocation data center, also referred to “colo”.

 

Why does a company need to rent out a space for their network equipment?
Businesses that use colo, may not have the necessary resources needed to maintain their own data center. In order to enjoy all the benefits without having a data center, they use the colocation data center.

 

Sure good colo providers offer security, advanced technology, and manageability.  However, when renting out a colocation data center, you have to keep in mind that:

1. It is a shared space.

That is all the companies and businesses using the same colocation data center, share its cost. This can be considered as a great benefit, since it costs a lot more to build a new data center.

2. It includes some form of contracts.

Since there are a lot of upfront costs the colo company will have when bringing in new clients, they typically want some form of an agreement so they can recoup some of those costs over the course of months. Many times you can negotiate a lower monthly cost if you offer more towards the set up fee during the start of the contract.

3. There is some degree of transparency.

Given the fact that a colo customer is sharing the same data center as other businesses, it is normal to expect transparency. However, what’s important is to closely examine the service level agreements (SLAs) so that the extent of the transparency is known.

For some companies and organizations, renting out a colocation data center can be considered the ideal solution.

Come take a look at coloco for many more important information about colocation data centers.