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How Colocation Can Save You Money and Mitigate Risks

How Colocation Can Save You Money and Mitigate Risks

At the end of 2015, Gartner analysts estimated that there were 4.9 billion "things" making up the IoT (Internet of Things). In 2020, Gartner further forecast that number will reach almost 25 billion. From a business perspective, the "things" that make up the IoT refer to data. Although it's still too early to tell how all this interconnectivity will unfold, one thing remains clear -- all the data needs to be housed somewhere. Valuable data to be exact.

While some enterprises may consider building an in-house server room, many smaller and mid-sized companies have turned to colocation to house their equipment and IT infrastructure. Others have found cloud storage to be the most advantageous. There is no right or wrong choice when choosing between colocation or cloud-based servers. Eventually, it boils down to your enterprise needs, current organization size, budget, and long-term goals.

At first glance, building your in-house data center may appear more economical. Yet, a recent report found out that the cost-efficiency of having your own declines if you take maintenance and future expansion costs into account.

4 Benefits of Using Colocation

Earlier, we talked about the key benefits of colocation. Today, you will learn about colocation's advantage in terms of economies of scale and risk mitigation.

1. Colocation allows you to save on bandwidth costs.

In real estate, location is everything. In businesses like yours, bandwidth is king. At Atlantech, our clients enjoy low latency peering relationships direct to their data center with high-speed, high-bandwidth fiber connections on our network. To ensure your server's optimum performance, you don't have to come up with a separate budget for high-speed Internet. Your business can operate smoothly at faster network speeds minus the hefty fees.

2. Colocation means less operational expenditures.

Besides the required funds to build your own data center, there are additional operational expenditures to consider. These include space, cooling, power and UPS support needs.

With colocation, the burden of paying for these space and power requirements are lifted from your shoulders. Not to mention that you can readily acquire extra space, bandwidth, and power as your business scales.

3. No overhead costs for security, real-time monitoring, and downtime support.

Next to slow networking speeds, many businesses suffer from a lack of dedicated personnel to handle real-time monitoring and downtime support of their onsite server rooms. Colocation enables small to mid-sized enterprises to be more resilient against latency with 24/7 support. Furthermore, real-time monitoring can reduce the risk and impact of downtime. You get to enjoy these benefits without spending extra.

And there's security. Opting for colocation means you don't have to pay for multiple layers of security measures -- from cameras to electronic swipe cards to biometrics. Your colocation data center of choice will take care of this.

4. Colocation = smoother disaster recovery.

Established data centers are built to withstand power outages as a result of extreme heat or cold, tornadoes, floods, and ice storms.

The Atlantech Online Rockville and Silver Spring, MD data centers are supported by our regional fiber network. Each data center features high-end routing equipment and servers with both local and remote backup locations. The environment is under strict control, with a humidity level of 45 percent and over 140 tons of cooling capacity. Both data centers are connected directly to a multi-substation power grid, with online battery and diesel generator backup power sources.

Thinking Big Picture

Colocation is no longer limited for businesses handling massive amounts of data. The Internet of Things has made it necessary for small to mid-sized enterprises to opt for colocation if they want to veer away from the complexity and costs of building their own in-house servers and infrastructure required to support them.

Like everything else in handling businesses, consider your data center needs with a big-picture approach.

Got a burning question on how colocation can specifically help your business? Our expert team would love to hear from you!-

Tom Collins
Post by Tom Collins
January 8, 2016
Tom is the Director of Enterprise Sales & Marketing for Atlantech Online. He has over 20 years of professional experience in the Internet Service Provider industry and is known for translating technology into positive results for business. A native of Washington, DC, a graduate from University of Maryland (degrees in Government & Politics and Secondary Education), Tom is also a five-time Ironman finisher.