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BizCloud® Network | November 26, 2015

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Business Benefits of Colocation

  • On February 7, 2011

More and more companies are realizing the advantages of collocating their mission-critical equipment within a data center. Colocation brings savings both in terms of time and money due to the utilization of shared data centre infrastructure. Companies can have significant savings on infrastructure, technology and human resources. By housing their servers and other equipments in secure environment, companies benefit from improved redundancy and more time and resources freed up to concentrate on their core business.

Colocation data centers offer physical space for companies to house their servers and other computing equipment and connect to a variety of telecommunications and other network service providers with reduced costs and complexity. Colocation data centers provide their customers with quality data management, up-to-date security services and ensure the network performance, redundant power supplies, etc.

One of the major benefits of using colocation is that it provides customers with the flexibility necessary to scale up their requirements and technology according to their growing business needs while excluding additional capital investments from the equation.

Businesses that benefit the most from colocation are those whose business continuity largely depends on uninterrupted access to the their data flow, including companies who provide web services, eBusiness, financial services, etc. E-commerce companies use data center facilities to ensure a secure environment as well as redundant and cost-effective connections to the Internet. Large companies usually leverage colocation for data storage and disaster recovery. Telecommunication companies use colocation facilities to interexchange traffic with other telcos and to ensure reliable access to potential clients.

What all types of organizations gain is greater security and performance without building and maintaining their own data center facilities. Colocation data center facilities are equipped with resilient power and cooling systems and high level physical security that ensures customers’ IT infrastructure is running 24/7.

Some of the advantages of colocation for businesses are:

Security: Data center facilities employ high-level of security onsite, usually wth CCTV, 24/7 monitoring systems, biometric security measures and security guards  to safeguard customers data.

Better Connectivity: Colocation data centers have fully redundant network connections ensuring that customers’ business critical applications always run unninterupted.

Improved Network security: Data centers have top-notch network security, including the latest firewalls / IDS systems to detect and prevent unauthorized access to their customers’ systems.

Redundant Power Supply: Colocation data centers offer power redundancy through a combination of multiple power grids, diesel power generators, double battery backup systems and excellent maintenance practices.

Bursting Capability: Colocation centers provide customers with the flexibility to burst to higher bandwidth levels to accommodate their traffic demand without having to make repeat capital investments. Since data spikes are distributed over time across numerous users, bandwidth costs are significantly reduced.

One of the leading colocation facilities to consider is offered by Telx, providing customers with  power and security to guard and connect their data assets so they can have peace of mind as they bring their data center and hosting services closer to their customers.

Telx’s operates 15 strategically located, world-class, carrier-neutral colocation facilities in the U.S enabling customers to reduce the cost of building their own facility and maintaining their own in-house dedicated servers. Learn more by contacting BizCloud.


  1. Sophie

    Hi Jason, great article. This article might be of interest to you. It's tells more about how colo makes IT security compliance easier.

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