Data Center Co-Location could be the proper choice for any company of any size located anywhere of any industry, and it refers to a service provided by companies that offer a shared, secure space for enterprise businesses to store hardware related to data storage and other equipment.

The cost and growth of Data Center and Co-Location is growing and not being managed today. The statics says:

  • The global market for the co-location data center industry is expected to grow from $30.9 billion in 2016 to $54.8 billion by 2020, at a compound annual growth rate (CAGR) of 15.4% for the period of 2016-2020.
  • Invoice errors are between 8-14% 
  • Americas as a segment is expected to grow from nearly $16.8 billion in 2016 to $26.4 billion by 2020, at a CAGR of 12.0% for the period of 2016-2020.
  • Asia-Pacific as a segment is expected to grow from $5.4 billion in 2016 to $13.2 billion by 2020, at a CAGR of 25.0% for the period of 2016-2020.

Comparing data-center invoices from multiple vendors is a daunting task. Each Data Center and Co-Location provider uses its pricing methodology and billing models. 

Clients are forced to compare apples to oranges, as the cost base on complex definitions and data models. The spend doesn’t run through TEM systems due to the absence of EDI and the complexity of the invoices. Simplifying the process and clearly defining key data-center terminology is essential to finding the right solution and getting the best price for customers. 

The first step? This spend needs to run through TEM systems and normalized. Then it needs to be compared to contracted rates for monthly validation. Then standard monthly KPI’s will be driven to lock in all the cost-saving and cost avoidance.

Enterprises Benefits of Data Center Co-location

Cost: One of the main advantages of co-location is that it results in significant cost savings, especially when measured against managing a data center in-house. It means that for many companies, renting the space they need from a data center offers a practical solution to ever-shrinking IT budgets. With co-location, there is no need to worry about planning for capital expenditures such as UPS (uninterrupted power source), multiple backup generators, power grids, and HVAC units.

Apart from these capital expenditures, there are also ongoing maintenance costs associated with maintaining and managing an in-house server.

Scalability: As your business grows, you can quickly expand your IT infrastructure needs through co-location.

Different industries will have different requirements in terms of the functionalities they need from their data center as it relates to space, power, support, and security. Regardless, your service provider will work with you to determine your needs and make adjustments quickly.

Security: Data centers are equipped with the latest in security technology, including cameras and biometric readers, check-in desks that welcome inbound visitors and check for security badges are commonplace. These facilities are monitored 24/7/365, both in the physical world and in the cloud, to ensure that unauthorized access does not occur.

Risk Management: Businesses who use data centers as a data recovery strategy are doing so to mitigate risk in the case of an external event (such as a natural disaster) or outage. Utilizing a colocation facility ensures business continuity in the event of a major disaster. This means that if your business location loses power, your network traffic will not be affected.

The key is redundancy. The layers of redundancy offered at a data center colocation are far more complex than many companies can afford in-house.

Some enterprise companies will consider the off-site location as their primary data storage location while maintaining onsite copies of data as backup.

Support and Certifications: When you partner with a data center colocation, your enterprise business may be able to reduce potential payroll costs by relying on the data center experts to manage and troubleshoot major pieces of equipment. Enterprise businesses can rely on expert support from experts who are certified to help. As such, colocation offers the benefit of peace of mind.

Contact us for a free Data Center / Co-Location invoice analysis.