What is a Colocation Data Center?
A colocation data center refers to the shared data centers in which an organization can lease or rent space to install their server, storage device, router, and other computing and networking hardware. While the customer installs their hardware, the multi-tenant space offers building, cooling, power supply, network bandwidth, physical security, and internet access.
Also known as “colo,” it has become a well-known data center model for organizations as it is shared with other organizations, and you can rent the space by rack, cabinet, cage, or room. Most importantly, colo also sets up connectivity to your operation site to help you operate smoothly.
With such a facility, not only do you gain scalability and continuity but also protection for all the data, systems, and applications. Many modern colos also offer advanced data center technologies and managed services, which include disaster recovery, security management, internet access, WAN, and many more. Thus, it enables businesses to use their resources in other processes.
Many modern organizations prefer this kind of facility because it also offers higher reliability with backup generators and redundant power that prevent application and service disruption.
What is Colocation?
Colocation usually refers to the ready-to-use data center space used by different customers with their unique hardware setups. Usually, businesses share spaces in the data center to host their IT infrastructure.
These facilities provide organizations with a better infrastructure than traditional solutions and around 100% uptime through SLA. The computational and networking hardware is provided by the organization renting the space, and it is housed and maintained by the data center staff.
Colocation enables organizations to have their servers at different locations so that they can offer better service to their physical offices and customers. Colocations are usually certified based on their data center tier standard, and they are:
Tier 1
The tier 1 colocation comes with a single and non-redundant distribution path including power and cooling for all the hardware. It also comes with a backup component and has an uptime around 99.7%.
Tier 2
A tier 2 colocation comes with all the components that you will find in a tier 1 colocation along with a backup component. Usually the tier 2 colocation gets redundant capacity components and offers the same uptime as tier 1.
Tier 3
Unlike tier 1 and 2, tier 3 colocation comes with multiple distribution paths where each path caters to the IT equipment at each time. It comes with all the tier 1 and 2 requirements with an uptime around 99.98%. Every equipment in this colocation is backed by a dual power and cooling system and compatible with the architecture.
Tier 4
Tier 4 colocation is a fully equipped and fault-tolerant facility with all the necessary tier 1, 2, and 3 features. All the cooling systems are powered by a dual system, which includes HVAC systems, and have an expected runtime of around 99.99%.
Types of Colocation Facilities
A colocation data center is segregated into three types which are retail, wholesale, and hybrid. Previously, colocation data was only limited to retail and wholesale, but recently, the hybrid was included. Let’s take a look at all the types:
Retail Colocation Facility
Retail colocation facilities offer a rented place inside a data cater and they are offered in the form of rack, area inside a rack and caged off space. This type of colocation data center is opted by a varied type of customers that ranges from small business to large enterprises. It is preferred by most businesses because it provides flexibility when it comes to space, connectivity and power.
Wholesale Colocation Facility
A wholesale colocation facility offers customers with a fully built data center space but at an affordable rate than normal retail vendors. However the space availability and power requirement for equipment is slightly low in comparison to retail customers. Some wholesale colocation facilities also offer the option of custom build solutions to cater to the business needs.
Hybrid Cloud-Based Colocation
Hybrid cloud-based colocation refers to the data center facility that is setup with a combination of in-house house data center and outsourced data center services. A lot of modern organizations often use this type of colocation facility because it offers scalability and flexibility to manage all the workloads. Most importantly, it is highly cost efficient and organization pay as per their data center requirement.
Benefits of a Colocation Data Center
Setting up the server in a colocation data center offers you numerous benefits, and these benefits are:
Better Reliability
One of the reasons many organization prefer a colocation data center is the reliability it offers in terms of power, cooling system, bandwidth and backup. Basically it has all the resources for maintaining a resilient and redundant system. Thus, organization are able to get higher reliability than they might achieve from an in-house data center.
Location Flexibility
One of the biggest benefits of a colocation data center is that an organization can decide to put its server at any colocation data center it wants. Most importantly, it enables the organization to put its IT infrastructure in a location with better internet connectivity and power sources. Moreover, it also gives them flexibility to place the infrastructure near the user base.
Performance
A reputed colocation facility, dust-free setting, constant power backup and top-notch climate control which is important to run the hardware for a long time without interruption. The colo provider takes care of all the aspects to maintain the performance of hardware.
Lower Operation Cost
Colocation data center serves as a multi-tenant space and they offer data center setup within a single facility, as a result operation cost is quite lower. Since the cooling, power and bandwidth is shared among all the tenants, it reduces the overall cost.
High Scalability
High scalability is one advantage that lures many organization to choose colocation DC as these facilities can support the growing IT and data center requirements. It offers room to grow and expand their server without having to worry about space, power or security.
Third-Party Maintenance
When you opt for a colocation facility, you won’t have to be involved for maintenance as the provider takes care of most things. In many colocation DC, the providers offer employees, resources and management systems that care for the maintenance processes to ensure servers operate at their optimum efficiency. They also take care of the equipment and ensure they deliver the performance needed.
Physical Security
With colo, you won’t have to worry about any kind of threats to your data or network as every provider has robust physical security. Most of the colocation employ strict security policies and a high degree of physical protection in the form of guard, fences, video surveillance, biometric, fire suppression system, etc.
Risk Management
Colocation are equipped with better risk management and they ensure all the computational and networking equipment run even during natural disasters or data breaches. Moreover these infrastructure can handle any natural calamity without harming the hardware equipment.
Colocation Data Center vs Cloud
When it comes to choosing a colocation data center, many customers often get confused by considering it similar to a cloud environment. Since both colocation data centers and the cloud offer the option of storing customer’s IT assets in a third-party data center, they are different from each other in many ways. Let’s explore the difference:
| Colocation Data Center | Cloud | |
| Hardware Control | In colocation data centers, the organization has control of IT assets, including computational and networking hardware. | In the cloud environment, all the IT assets are owned and managed by cloud providers. The access and control over the assets depend on the cloud service model used. |
| Server Ownership | In colocation, the organization owns the server, and they are responsible for installation and maintenance. | The cloud service provider offers the option to use their server on a pay-per-usage basis. |
| Space | In this facility, the space is allotted according to the requirement of the customer which often goes 10,000 sq ft. | In a cloud environment, the services are deployed virtually, so the customer doesn’t have to worry about space in the data center. |
| Power Requirement | The customer pays only for the power requirement they need to run their hardware either on a monthly basis or by unit. | The customer doesn’t have to pay for power separately as it is covered in bundle cost with pay according to usage policy. |
| Resource Sharing | In colo, the resources in terms of computational and network aren’t shared and they are dedicated to customers that own them. | In the cloud, all the resources are shared among customers virtually and they are provided according to their needs. |
| Network Bandwidth | The customer gets a dedicated bandwidth, and they have to manage and configure it. | The customers get access to a shared bandwidth, but everything is managed by the provider. |
| Affordability | Colocation DC comes with a little upfront cost, but the rest of the payment is done for maintenance. | In the cloud, the customer won’t have to make any investment. Instead they have to pay for the subscription cost. |
| Accessibility | Customers can directly access the rented space in their colocation and make changes as required. | Customers have no access to the data center and they can’t make any upgrades to cater to their business needs. |
How Colocation Data Center Works?
Enterprises that don’t have definite space to set up their data center look for a colocation data center where they can set up their server and other hardware for business operations. From servers, switches, routers, and storage devices to switches, systems, and other hardware are set up by the organization at the allotted space.
Usually, a colocation data center offers a space option from 500 sq ft to 10,000 sq ft, depending upon the requirement. The hardware is placed in cages, cabinets, or any private space rented by the organization. The installation and maintenance of all the hardware is the customer’s responsibility. However, in some colocation data centers, the provider offers assistance with the installation and maintenance of the hardware.
Once the business owner sets up the servers and other equipment in the rented space, colocation DC takes care of other requirements. It provides the necessary bandwidth for the connection, along with adequate cooling and power capacity. These providers are quite flexible with bandwidth, and organizations increase or decrease it.
The power capacity is offered according to the requirement of the hardware. Importantly, the colocation facility also provides power backup and constant cooling even when there are any issues or natural calamities. It also offers effective maintenance services and stringent physical security to safeguard the data center from any kind of threat.
Differences Between a Data Center and a Colocation Data Center
A data center offers many benefits, but the colocation data center model is also becoming popular among many businesses. That is why many organizations often get confused between a data center and a colocation data center when it comes to setting up their server.
The primary difference between the two is that the data center is completely owned by the organization, while the colocation data center serves as a rented service. Basically, in an in-house data center, you set up your own infrastructure, whereas, in colocation, you set up the hardware in someone else’s data center.
In terms of control of resources and data, many large enterprises opt for a data center because they feel more comfortable with being liable for the security of their data and servers. Moreover, if there are any issues, they can quickly fix the server issue.
In colocation, the customer has put their server under the authority of the provider and it always runs the risk of accidental damage. However, nowadays, most providers work closely with the customer to offer optimum maintenance and protection. In many cases, the organization offers assistance to the organization to fix any issue.
Installing a data center infrastructure requires a huge upfront cost and the organization needs to maintain a high operation cost for running the servers. However not every organization has such a requirement so they move to a colocation data center which is affordable and gets the job done. Moreover they won’t have to be always engaged with the data center as the provider takes care of all the maintenance and management processes.
Considerations While Selecting Colocation
While selecting a colocation data center, you can’t randomly choose any provider, as a wrong choice can affect your business operation. There are certain things you will have to keep in mind while considering a colocation. Let’s check all the considerations:
Location
When selecting a colocation data center, you should consider the location because the location of your servers will play a crucial role in business operations. The location should be close to your business, accessible, and less prone to natural disasters.
Connectivity
Ensure the colocation has sufficient bandwidth coverage to meet your connectivity requirement. It would be great to have a provider with different network carriers and redundant network support.
Operation Cost
Another important consideration you should keep in mind is the operation as operation cost is not the same in all colocation data centers. Evaluate the overall expense and opt for the one that meets your daily budget to run servers.
Security
Since you will set up a lot of expensive hardware and store a lot of sensitive information, the colocation should be equipped with robust physical and digital security measures. Not only should it offer biometric, video surveillance, and physical security, but access control, fire suppression systems, and armed personnel should also be present.
Service Level Agreements
Ensure the colocation complies with service level agreements because SLAs monitor the service quality offered by the provider. A colocation with SLAs will ensure high uptime, 24/7 support, top-notch maintenance, and high response time.
Compliance
To cater to regional data management regulations, colocation data centers play a crucial role. You need to assess whether the colocation meets your regulatory requirement like regular backup, security and other aspects.
Flexibility
You also need to make sure the colocation is flexible with the power, cooling, bandwidth, and space when your requirement grows. When you install new equipment, the colocation should offer higher power capacity and specific cooling. Specific processes might require high bandwidth, and the colocation must cater to it.
Third-Party Management
On many occasions, organization may not be able to manage and service the equipment due to distance. If you have such a requirement, then you should look for a colocation offering such service where they would take care of the equipment at regular intervals.
Term Agreements
When reaching a term agreement with the colocation vendor, you need to opt for a short-term contract so that you renegotiate when the price changes. It would be also helpful if you make changes to your setup or if you need to move to another colocation data center.
Security Pros and Cons of Colocation Data Center
Colocation data centers are gradually becoming a top choice for most organizations as they benefit them in many ways. However, colocation comes with both advantages and disadvantages in terms of security. Here, we will explore all the security pros and cons:
Security Pros of Colocation Facilities
- Most reputed colocation data centers offer a robust physical security infrastructure. In some colocations, they deployed barbed wires around the perimeter and armed security personnel at every corner.
- It comes equipped with modern security controls like biometric entry, 24/7 audio-video surveillance, fire suppression system, heat-mapping, etc.
- The facilities are built in areas having a stable law and order system with government security forces in nearby places.
- Constant power backup system that keeps all your hardware running even if there is a power cut in the area.
- The infrastructure is built in such a way that it helps protect all the hardware in place from any natural calamity.
- In some colocation facilities, the provider offers advanced firewalls and anti-malware to protect the networks and systems from any kind of attack.
Security Cons of Colocation Facilities
- A colocation data center won’t offer the organization with network monitoring, continuous visibility and other security tools. Either you will have to deploy it by yourself or rely on what they have on offer.
- Only certain colocation facilities offer you armed guards and advanced security facilities, and they often come with high expenses. So, not every organization will have a similar security level.
- It gets difficult to create a redundant system for running workloads parallelly with other colocation facilities running the same business operation.
Which Organizations Use Colocation Facilities?
Any organization that needs a rented space to set up its server can use a colocation facility. From small-scale organizations to large enterprises, anyone can use colocation data centers to install their computing and networking hardware to run their IT operation. Under many circumstances, an organization may use a colocation facility, and these organizations can be:
- Small and medium sized organization can use colocation to set up their server near their required area.
- Enterprises with requirements of IT expansion often use colocation.
- Cloud service providers and vendors offering SaaS often prefer to use colocation due to location flexibility.
- Vendors offering managed or shared hosting services are known to prefer colocation data centers.
- Content delivery networks widely use colocation to have widespread coverage of their content.
- Some government agencies prefer to set up their server in colocation facilities.
These organization usually prefer to set up their colocation facility apart from in-house data centers mainly due to high expenses associated with building. Moreover, maintenance and updating a facility requires a lot of resources and involvement, and not everyone has such a requirement.
Many modern organizations prefer to use colocation due to the location flexibility they have on offer and the convenience of placing the server near their customer base.
Final Words
Colocation data centers have benefited organizations throughout the world, especially those who don’t have the requirement to build an in-house data center. Many modern enterprises prefer to use it because it offers them the benefit of hosting while having complete control over the IT system.
In this guide, we have thoroughly explained “What is a colocation data center” and various others so that it is easier for you to decide whether you need to shift your IT infrastructure to a colocation. We have discussed every possible aspect so that it is easy for you to understand the colocation facility.
