Colocation and Digital Transformation

Colocation is a service when a service provider hosts its customers’ servers, storage and network equipment in its own data center. In addition to the physical space for servers or racks, renting space from a multitenant data center cooling, electricity and telecom connectivity is included to the service fee.   Is colocation a part of […]

Written by Sanna | Published 4.9.2020 | Edited 17.9.2020

Colocation is a service when a service provider hosts its customers’ servers, storage and network equipment in its own data center. In addition to the physical space for servers or racks, renting space from a multitenant data center cooling, electricity and telecom connectivity is included to the service fee.  

Is colocation a part of your digital transformation program?

There are many reasons why colocation is a great option for data center needs:

  • Data center is a very specialized facility and building one is very expensive. CAPEX is avoided when renting server space from a colocation service provider.
  • As a readily available, specialized facility for securing and storing data, a colocation data center offers much higher level of security with security guards and two phased access control not to mention the building itself: Automated argon gas fire suppression system, backup power systems and continuous monitoring.
  • When server space is rented, not build by a company itself –  as an in-house data center – it offers a lot more flexibility: scaling up or down the space and power is a cost efficient way of operating. Building an in-house data center that is sufficient for future needs is very difficult – renting space and services from a colocation data center solves that problem neatly.
  • On premises in-house data center a vulnerable to outages. Playing it safe, it is wise to have back-up systems at a colocation data center.

What does is cost and what should one consider before deciding where to colocate?

Colocation service’s price is a combination of rental fee and power consumption (kWh used). In addition to the actual power consumption of the servers, also the lights and cooling consume some electricity. A multiplier is often used to charge this overhead of the electricity consumption, in addition to the server power usage. In an energy-efficient data center, the multiplier is at a low level. Power Usage Effectiveness (PUE) is a value that indicates the energy-efficiency of a data center, values near 1 are energy efficient and values above 2 – 3 are not. So, in order to find a cost-efficient colocation data center, one has to take a find out at how energy-efficient the candidate is. Eco-efficiency and energy-efficiency walk side by side, an important notion when cutting back carbon dioxide emissions caused by business operations.