Colocation in 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 already 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 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 – 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 it 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.

Colocation space in Herman IT data center is rented out in terms of racks, rack units and entire data halls. Read more!