What is colocation? The guide to server housing
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Companies today have more options than ever when it comes to managing their business-critical information. The demand for colocation services has grown steadily in recent years. Why are more and more large and small companies turning to Colocation-Services? This article answers the most important questions about server housing.
What does "co-location" mean?
The concept of co-location first appeared in 1998 when companies moved racks and servers out of their offices and into server housing centres. Co-location (Latin "co" for "together, with" and "lokus" for "place") is when several companies share a physical space for hosting their network infrastructure. Co-location (also called "colo") is by definition the housing of many things in the same space. In addition to the security and management of the infrastructure, important utilities such as power and cooling are also guaranteed. Companies house their servers, storage systems and network devices in a third-party data centre. Simply put, they rent space for their equipment there and also receive power, an emergency power supply, cooling, cabling and more - just like in their own data centre.
Who should opt for server housing?
Hosting the infrastructure in a colocation data centre makes sense for companies that want to save space with server housing. At the same time, the company retains access to the racks without having to worry about the daily operation of the infrastructure. Rack housing saves customers the costs of power, cooling, security and general management of the infrastructure. Due to scale, colocation service providers receive discounted rates for power and basic data centre infrastructure. These savings are passed on to each customer.
The most important criteria for choosing a colocation provider
When choosing a colocation provider, businesses need to consider numerous factors. These include:
- Cost
- Availability of the floor space
- Size of the racks
- Cooling efficiency
- Power supply
- Battery backup systems
- Network connectivity
- Spatial organisation of rack housing
- Network equipment
- Other IT hardware
- Location of the colocation centre
- Physical security and compliance certifications
- Disaster recovery plans and much more.
- Considerations when choosing a colocation provider
Since the performance of the business depends on the colocation centre, choosing a provider is an important decision. While power consumption, availability, scalability and rental costs are the obvious factors, there are other criteria to get the maximum benefit from a colocation centre:
- Location: the physical location of the colocation centre plays a big role in terms of accessibility and reducing network latency. Minimising latency delays is important for application performance.
- Scalability and flexibility: What services does the colocation provider offer? Can the offering meet scaling requirements as the business grows? What about migration requirements? As the company grows, so does the amount of data. The colocation facility should be able to meet any additional capacity needs.
- Security services: What kind of security procedures and protocols are implemented by the colocation provider to protect company data? Some colocation centres offer 24/7 network monitoring and provide proactive security alerts and DDoS defence services.
- Disaster recovery readiness: Companies should coordinate their disaster recovery plans with the colocation facilities and ensure that IT resources are protected against all types of disasters and incidents.
Companies need to remember that choosing a colocation provider is a long-term decision. Moving infrastructure from one data centre to another can involve downtime. Companies also need to consider the growth plans and stability of the colocation service provider. A key consideration should be the location of the colocation data centre. Two factors can help in deciding whether the centre location is suitable. In case the company wants to send expert IT staff to investigate problems, the data centre should be close enough to avoid high travel costs. Different managed colocation services have different security offerings, uptime, SLA (service level agreements), power costs, etc. Just like in the cloud landscape, companies have the option to choose from a variety of providers.
What advantages do companies have thanks to co-location?
The Co-Location is a way for companies to reduce the investment costs of having their own data centre by renting space in a third-party facility. Apart from physical security, one of the other benefits of using a colocation centre is the establishment of security to comply with regulations and audit requirements. Running a specialised IT infrastructure with customised security is something that businesses can achieve when they opt for a colocation facility instead of the cloud. Colocation centres usually take stringent measures to protect the IT infrastructure in the building. These can include video surveillance, fire alarms and on-site security guards. Most colocation centres provide maintenance, monitoring, reporting and troubleshooting to prevent potential disasters such as system failures, security breaches and outages. Many providers have multiple backup and disaster recovery options to keep services running in the event of power outages and other unexpected events. Generally, colocation centres and data centres are classified into a Tier system from Tier 1 to Tier 4 based on uptime:
- Tier 1 colocation centres provide 99.67 per cent uptime, have the lowest redundancy and planned downtime.
- Level 2 colocation centres offer 99.74 per cent uptime, with planned annual downtime required for maintenance.
- Tier 3 colocation centres provide 99.982 per cent uptime. All servers in Tier 3 are supplied with power via two distribution paths. In the event of a power failure to one path, the servers remain online.
- Tier 4 colocation centres offer 99.995 per cent availability and function even in the event of a disaster such as a fire.
A colocation centre usually offers its customers a wide range of connectivity options. With multiple internet service providers, cloud environments and other cross-connections available, businesses can optimise performance and improve the flexibility of IT operations. Managing your own data centre and IT infrastructure can be more expensive than the cost of renting space in a colocation centre. With co-location, companies also get a predictable operating cost model. They can scale quickly and easily. Expanding private server rooms and data centres would otherwise require months of planning. In addition, businesses benefit from state-of-the-art technology, hardware and security without the hassle of buying their own equipment and hiring staff. Colocation data centres also provide a secure and affordable answer to increasing data security threats. Businesses benefit from multi-layered physical and cyber security protocols and a team of security experts on call 24/7.
The disadvantages of server housing
The initial start-up costs can be significant and cost more than choosing simple hosting. In addition, companies have to hire an IT expert to maintain the server. Another disadvantage is that the servers are located off-site. This means that employees have to travel if they want to physically work on the IT resources. There may not be a colocation centre nearby. This can increase travel costs if the centre is very far from the company. Colocation customers also often sign a long-term contract. Monthly costs can change due to fluctuations in bandwidth usage. Companies should ensure that they check the contract for hidden costs and fees.
Which server housing solution is best?
Colocation centres, on-premise solutions and cloud infrastructures have their own advantages and disadvantages. Companies need to comprehensively evaluate which type of solution best fits their business needs and helps them operate most efficiently.
Co-location vs. on-premise solution
Co-location is undeniably cheaper than building and maintaining your own data centre. However, in cases where a company has a large amount of legacy infrastructure and/or complex hardware and network requirements, the on-premise option may be unavoidable.
Co-location vs. cloud
The main difference between co-location and public cloud services (Infrastructure-as-a-Service or IaaS) is that with server housing, companies own and maintain the hardware, whereas with IaaS the service provider provides all the equipment. Cloud services offer even greater flexibility to scale as computing needs change. However, services in the cloud can also be more expensive. On the other hand, co-location carries the risk of vendor lock-in, which can be a disadvantage for some companies. Co-location in the data centre means that the company's own equipment is stored securely in a special facility. The vendor provides the space, racks, ongoing maintenance, support and power. The equipment belongs to the company. In contrast, cloud storage is managed exclusively via the internet. The company does not always know where the servers are that hold the data. They access it entirely online. Co-location gives businesses more control over data and more flexibility compared to cloud hosting, along with transparent, predictable pricing. The decision of whether companies host their information in the cloud or opt for a colocation strategy with a regional data centre has major business implications.
Conclusion
What happens when the company's data volume outgrows its on-premise infrastructure? Companies could build an add-on or change headquarters, but that's drastic just to accommodate a few more servers. By using co-location for IT outsourcing needs, companies regain the ability to focus on core initiatives and resources. The most valuable benefit of colocation is the robust, state-of-the-art IT infrastructure available to store customer data. Attempting to implement these systems in-house could quickly exceed a company's IT budget. Many companies also do not have the time or money to install and maintain such complex hardware and systems. When problems arise, the centre's support team is available around the clock to troubleshoot and restore needed performance. For most businesses, the advantages of co-location outweigh the disadvantages. They have access to more bandwidth than they can often afford. They don't have to pay to build and maintain a data centre. When a co-location centre is nearby, companies can reap all the benefits. This allows the business to run more smoothly with fewer expenses. One benefit that many companies often don't consider is the protection of their business-critical information as a major selling point. Companies manage their customers' sensitive data. By being transparent about the fact that they are using a colocation facility, they show that data management and security are a priority.
Marcel Zimmer is the Technical Managing Director of EnBITCon. During his time in the German Armed Forces, the trained IT developer was able to gain numerous project experiences. His interest in IT security was significantly awakened by his service in command support. Even after his service, he is an active reservist in the Bundeswehr.
His first firewall was a Sophos UTM 120, which he had to set up for a customer project. Since then, his interest in IT security has grown steadily. In the course of time, various security and infrastructure topics have come into his focus. His most interesting projects included, for example, WLAN coverage in an explosion-proof area, as well as a multi-site WLAN solution for a large
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