Why Colocation Supports Growth and Enables Cost Savings

Colocation Supports Growth

In years past, companies have attempted to employ the use of their local space to implement micro-data centers for their businesses only to find the costs prohibitive, maintenance difficult and upgrades never-ending; perhaps even running out of space for growth. Further, the operational costs alone can be business-negative and drag down the bottom line. Colocation in top-tier facilities makes far more dollars and sense. Colocation supports growth when migrating, moving, or even starting fresh into a data center and colocation space can also be the catalyst without high cost.

How Colocation Supports Growth

With the increase in IT capacity requirements and customer growth, companies are noticing that data and resource needs are constantly changing. This often prompts companies to make decisions on whether they should build their own data center, add additional space or find a qualified data center provider to handle their data center solution needs. Making these changes in-house for the company’s on-site facility can be time consuming and costly.

There are many challenges that come with building an on-site data center. Determining the right size of the footprint, not only for your current infrastructure, but also planning for future growth can lead to miscalculations and an abundance of space or too little space for growth. Overbuilding means that you have wasted resources and have idle space and underbuilding a data center facility can be more costly than overbuilding. One of the most difficult tasks is to know exactly what the company’s IT requirements and demands will be five or ten years down the road. Careful planning and growth projections are beneficial, but unplanned growth can happen at any time and that newly built data center may not be able to handle the growth, which in turn leads to more capital costs to expand the space.

Whether a business is looking to increase or decrease bandwidth, add additional cabinets, or add an additional power feed for redundancy, implementing colocation services will dramatically decrease the turnaround time needed to be scalable as the business grows or requirements change. Colocation providers function with the mantra that their clients will continue to grow over time; this allows businesses to utilize the provider’s space and operate on a pay-as-you-grow basis. By adding square footage or cabinets as needed, instead of building-out and having idle space, it allows for flexibility and an opportunity to grow when the business dictates instead of when your space is ready.

How Colocation Enables Cost Savings

With the increase in IT requirements and reduced budgets that are being enforced, companies are now looking to data centers for colocation solutions. By implementing colocation, companies no longer have to equip, manage, or provide staff members to run in-house data centers. In addition to the capital costs of building an in-house data center, the operational expenses can be miscalculated when initially planned for and be detrimental to the budget. For a fixed monthly fee, companies can reap the benefits of a top tier data center’s capability and top of the line equipment, helping them to better allocate funds and focus more on revenue generating activities for the business.

Colocation supports growth, enables businesses to cut costs, and also increases functionality with smaller IT departments and allows the organization to focus on its business and customers rather than its IT infrastructure management. With highly trained staff, highly redundant infrastructure, and more purchasing power due to economies of scale with power providers, colocation facilities offer the most cost efficient and scalable solution for organizations.

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