A data center is a crucial facility for organizations that houses interconnected computing equipment and storage devices, enabling the management and distribution of large amounts of data vital for daily operations. Data center providers offer colocation services, offering multiple enterprises IT infrastructure and physical space at one or more locations for a fee. Colocation data centers provide various benefits and pricing structures, catering to the specific needs of a range of businesses.
In a colocation data center, two primary parties are involved: the provider and the customer. The provider ensures the proper functioning and availability of critical equipment and services within the data center, such as power supply (including backup and protection systems), access to network providers, server cooling systems, and security measures. Meanwhile, the customer installs, operates, and maintains their data center equipment within the facility.
By utilizing a colocation data center, enterprises can avoid expenses associated with constructing and managing their own facility. Colocation data centers offer substantial savings in capital and operational expenditures, since the space is already built and costs are shared among multiple users. Enterprises can leverage these cost savings to invest in scaling their IT network. Additionally, using a colocation data center can reduce the environmental impact of increased energy consumption resulting from an individual business constructing and managing a stand-alone data center.
When enterprises use colocation services, they can minimize the risks of experiencing downtime since these data centers distribute the IT network across multiple locations. In 2019, a 14-hour outage cost Facebook $90 million, highlighting the high cost of downtime. By using a colocation data center, businesses can ensure continuous server functionality without the cost of maintaining their own data center or incurring additional maintenance fees. Each enterprise server client is guaranteed a certain percentage of uptime based on the tier they buy into.
Regarding security, colocation data centers offer significant advantages over traditional data centers. Conventional data centers tend to consolidate a network's computing and storage on-site, making them susceptible to physical security risks. In contrast, colocation data centers are designed to mitigate security threats and comply with industry standards for IT governance. These facilities feature advanced security technologies, such as cameras and biometric readers, and are equipped with security operation centers that monitor them around the clock.
However, there are various drawbacks that enterprises may face using colocation data centers, such as losing control over data. By entrusting essential and confidential equipment to a third-party provider, businesses relinquish some control over the protection of data from loss or damage. Despite data centers being designed with redundancy and protocols to mitigate these risks, some enterprises prefer to maintain control over their servers, allowing them to address server issues immediately. Furthermore, contractual limitations, such as termination or non-renewal, equipment ownership, and vendor lock-in, may restrict business owners' flexibility and adversely affect their operations.
Pricing for colocation data centers includes the costs of the physical space, energy usage, and bandwidth allocation. Customers will also need to pay for using racks and more extensive storage options such as cages, cabinets, and suites. Providers charge power costs depending on the energy required to run and maintain a customer's IT equipment. Bandwidth costs may include connection between the data center and the network and installation fees for initial equipment deployment.
Selecting the right colocation data center demands careful evaluation of multiple factors. IT directors must ensure that the provider's agreement is flexible enough to meet their organization's requirements and that the facility can support their power needs. Additionally, the data center should be carrier-neutral, situated in a secure and easily accessible location, and certified by the Uptime Institute. Moreover, the enterprise must have a plan for managing transitional costs, and the data center must be scalable to accommodate future growth.