Best Colocation Hosting: How to Find the Right Colocation Data Center for You
What is the one thing every business wants to achieve? If you guessed growth, you’d be correct. Small businesses strive to gain momentum, and big businesses aspire to achieve new highs.
But as good as growth is, it is not without downsides. More customers could mean more relationship issues. And more projects could mean an avalanche of data. But there’s a strategy that can help you streamline your business operations called colocation hosting.
We’ll explain colocation hosting and present a list of the best service providers available. We’ll also go over the factors to consider when picking a colocation data center. Let’s jump into it.
What is Colocation Hosting?
Colocation hosting, a.k.a. server colocation, is the practice of renting space in a third-party’s colocation data center for your mission-critical IT infrastructure. It is a convenient alternative to running your own data center.
Colocation centers are equipped with racks, cabinets, cages, and security systems. They also feature high-grade power supply systems, internet networks, and air conditioners.
If you move your IT infrastructure to a colocation facility, the service provider will now be responsible for its safekeeping. However, you’ll retain management and operational control of your infrastructure. Meaning, processes such as cybersecurity, system configurations, and infrastructure upgrades are still your responsibility.
Why Would a Company Use a Colocation Service?
Colocation hosting is big business in the United States. Currently, there are about 1,828 colocation data centers in the country serving hundreds of thousands of businesses. In 2019 alone, the global colocation industry raked in a whopping $31.39 billion in revenue. That figure is expected to rise to over $58 billion by 2025.
But why is the service so popular?
It allows businesses to concentrate on their core business objectives. Here are some additional benefits:
Slash Costs
Operating your own data center comes with a slew of expenses. According to estimates, the annual cost of running a major data center is between $10 million and $25 million. The factors that contribute to this cost include:
- Building a physical structure
- Buying racks, cabinets, and other equipment
- Paying a technical team to run operations
If you’re a large-scale corporation, this might not be a problem. But if you’re a growing business, it can be a big strain. Think of colocation hosting as a way to avoid the hassle.
Enjoy High-Level Security
Whenever you work with colocation data centers, you run the risk of security breaches. Some mischievous hacker might impersonate someone and steal swaths of precious data.
Thankfully, colocation service providers offer a way out. They use a strong security apparatus, which includes sensors, cameras, and 24-hour physical security to fend off attacks. They also establish strict rules regarding cabinet access, including multi-level clearance requirements.
Scale-Up Easily
Sometimes, companies see a spike in the number of new customers signing on. They’ve struck gold, but what comes next? They have to scale up their services to meet the rising demand. This might mean additional databases, wider bandwidth, and so on.
However, this could pose a challenge for a company that manages its IT infrastructure on-premises. Problems may arise from a limited operational space or a “fixed” network.
Colocation hosting, however, relieves client companies of this burden. Providers generally offer plenty of white floor space as well as scalable connections.
Enjoy a Strong Network and 24-Hour Technical Support
If you’re running a fast-paced business, you simply can’t afford downtimes. There can be no such thing as “servers just went offline” or “there was a power outage.” Even a short network “party break” can cause significant losses.
A study found that data center outages cost an average of $7,900 per minute across industries. Another study revealed that 93% of businesses that had a data center outage lasting 10 days and above went bankrupt not long after.
It’s simple: servers must stay online. And colocation facilities make sure of this by investing in powerful generators and “durable” low latency networks. There’s also a 24-hour technical team that responds immediately if something goes wrong.
Enjoy Standard Disaster Recovery Plans
You may have heard of instances where fire or flood-ravaged a colocation data center and destroyed loads of corporate data. Or instances where temperature spikes and cooling failures damaged critical data, software, and hardware systems.
This can be a nightmare for companies. However, colocation service providers implement standard disaster response measures. These measures may include:
- Disaster risk assessment
- Disaster mitigation strategies
- Off-site storage procedures
Providers may also assist clients with backup and recovery processes.
How to Choose a Colocation Data Center
Consider factors such as price, location, security, scalability, and reliability when choosing a facility. Here’s the breakdown:
Price
Obviously, you didn’t invest in server colocation just to accrue more costs. So, if it helps, compare the prices of various colocation services before you decide. That said, be mindful of inferior solutions.
All in all, think about your budget, your business goals, and the needs of your customers before you settle on a facility.
Location
As previously stated, your colocation service provider will only store, not operate, your IT infrastructure for you. Therefore, you’ll have to visit the center on a regular basis and make any necessary tweaks yourself.
As such, it is a good idea to pick a center that’s close to your business. A short distance means fewer travel costs and more convenience.
Security
Before choosing a colocation data center, find out if the facility has:
- A secure network
- Adequate security systems, e.g. high-end sensors and cameras
- Qualified security personnel
- Data-security compliant solutions
The reasons are obvious. Security is ever-important.
Scalability
It’s critical to be ready to scale up when the opportunity comes. So, find out what scaling opportunities a colocation center offers before going for it. In other words, find out how much spare operational space they have and how scalable their network is.
Reliability
Reliability is key. So, before committing to a facility, make sure it has a reliable power supply and a good internet connection. Also, try to vet the facility’s disaster recovery strategy before you decide.
What’s the Difference Between Colocation Hosting and Using a Dedicated Server?
Sometimes, people confuse colocation hosting with dedicated server hosting. But the two are different concepts, which we’ll outline in our colocation hosting vs dedicated server breakdown.
In a colocation hosting model, the service provider leases data center space to clients. However, in a dedicated server solution, the service provider rents out a server in their colocation data center to the client. In essence, a colocation host gives you operational space, not IT hardware. But a dedicated server host provides both space and server hardware.
Still, in both cases, the client has total management and operational control over their server. They can update, upgrade and configure as they please. The service provider’s only role is to keep the power on, the cooling system working, the connection online and the security apparatus active.
The Best Colocation Service Providers in the United States
The United States is home to dozens of colocation service providers. However, a few of them have been quite consistent in terms of the quality of their services. They include:
Equinix
Equinix is a leading digital infrastructure firm that has been in business for 24 years. The company has a team that is well-versed in all things IT – from analyzing and moving to optimizing and testing IT infrastructure.
In North America, Equinix has over 85 data centers serving some 6,775 companies. Their services include high-capacity, low-latency connections, disaster recovery operations and direct interconnection. They have served big names such as Netflix, Zoom, Oracle and Cisco.
Pros
- Strong low latency network
- Impressive distribution of data centers
Cons
- May not offer personalized services
- May be less suited for smaller businesses
Cyxtera
Cyxtera is also a trusted colocation brand. The company owns 61 data centers serving 29 diverse markets. Their services include compliance, structured cabling, secure cabinet, cage, and remote hands—all of which are designed to help companies scale faster.
With certifications like BICSI, CDCMP, and CDCBP, Cyxtera’s engineers and technicians are among the best in the business. Clients have described their solutions as flexible, thorough and innovative. Cyxtera has served the likes of Sirius, Adaptiv networks and Pegasus Technology solutions.
Pros
- Tailored solutions
- Highly trained and certified IT professionals
Cons
- May lean towards bigger companies
- More data centers would be nice
Liquid Web
By providing customizable, dedicated infrastructure built to meet client needs, Liquid Web has positioned itself as an in-demand service provider. The company has 10 Global Data Centers and more than 500 on-site hosting professionals.
They offer multi-server configurations for maximum uptime as well as custom-built server clusters. Their services are HIPAA or PCI compliant and are optimized to keep clients’ servers operational and secure. Red Hat, Microsoft, and Cisco are among their partners.
Pros
- Decent global reach
- Max uptime for clients
Cons
- Not enough data centers
- Not enough served markets
Digital Realty
Digital Realty is yet another dominant colocation provider with a presence in 26 countries. The company boasts over 280 data centers spread across 50 metros.
From “move-in-ready” single cabinets to multi-megawatt solutions, Digital Realty offers colocation solutions that are customizable and quick to deploy. They also place emphasis on sustainable design, asset protection, and privacy. Their partners include IBM and Vapor IO.
Pros
- Privacy-focused digital solutions
- Environmentally friendly data centers
Cons
- May not offer personalized services
- May be less suited for smaller businesses
CoreSite
CoreSite specializes in helping organizations create and execute hybrid IT strategies. Their services include cabinet colocation, private data center suites, and remote hands. They also offer Content Delivery Networks (CDN) and IP Services. Overall, their services have a firm grip on security, compliance, and flexibility.
CoreSite has 9 data center locations across the United States. They have partnered with AT&T, epsilon, Tata communications, and others.
Pros
- Personalized IT services
- Strong connectivity
Cons
- Few data centers
- No presence outside the United States
In Conclusion
Server colocation has made life easier for many businesses. It has done the heavy lifting for many companies in terms of data storage, network security, and so on.
That said, if you’re a business owner considering this solution, take your time and make the right decision. Choosing the wrong provider can be as retrogressive as not choosing one at all – maybe even worse.
So, try to vet all “candidate” colocation data centers properly before settling on one. It can be a lifesaver.
FAQs
What is the best colocation hosting service for companies in the United States?
There are many colocation service providers in the United States, and new entrants appear on a regular basis. However, there are a few companies that have a track record of consistently delivering quality colocation services.
They include Equinix, Cyxtera, Liquid Web, Digital Realty and CoreSite. To choose the most suitable provider, consider your business goals and your clients’ needs.
Is colocation hosting the same as data center hosting?
Not necessarily. Some data centers are installed and operated in-house. So, no outsourcing to third parties is involved. However, with colocation hosting, third-party providers rent out data center spaces to client businesses.
Moreover, colocation has a number of advantages over regular data center hosting. They include reduced costs and the opportunity to focus on your core business initiatives.
Does a colocation center use cloud storage?
Not exactly. Colocation service providers use physical data centers to store and protect client IT infrastructure. That said, many service providers offer a number of managed IT solutions as a bonus.
This may include a complementary cloud network. All the same, though, data centers are the mainstay of colocation hosting.
