Feeling overwhelmed by the demands of managing your own in-house data center? While your on-premises IT facility may have served your business well initially, it can quickly become costly, complex, and resource-intensive as your operations grow.
Did you know that according to the 2023 Uptime Institute Global Data Center Survey, more than half (52%) of enterprise IT workloads now reside in off-premises data centers? This shift reflects a strategic move by businesses towards solutions like colocation hosting, which offers increased efficiency and scalability without the burden of managing IT infrastructure or significant upfront investment.
The best part is colocation hosting presents a compelling option for small businesses seeking to break free from the limitations of on-premise data centers without sacrificing control. But is it the right web hosting solution for your business?
This guide will delve into the advantages and considerations of this web hosting option, tailored specifically for small businesses. If you're ready to alleviate the headaches of managing an in-house server room(s), keep reading to discover if colocation hosting could be the key to success for your business.
1. What is Colocation in Web Hosting?
2. What Benefits Does Colocation Offer Small Businesses?
2.3. Access to Cutting-edge Infrastructure
3. Colocation-Related Challenges Small Businesses Should Know About
4. Key Factors to Consider When Selecting Colocation Services
4.2. Service Level Agreement (SLA)
4.4. Flexibility in Scalability
5. Exploring Remote, Smart, & Expert Hands as an Add-on to Colocation Hosting
What is Colocation in Web Hosting?
Colocation hosting is a service by web hosting companies or data centers where businesses rent space to house their server and networking equipment. Instead of keeping their servers in their work premises, businesses collocate their equipment in a professionally managed data center facility. The facility rents out racks, cabinets, or cages.
However, that's not all.
In a colocation arrangement, the data center also provides the infrastructure needed to support the servers while the business retains complete ownership and management of its hardware. That means the business owner will have full access to and control over the servers.
What Benefits Does Colocation Hosting Offer Small Businesses?
Colocation server hosting as a service is all about establishing optimal server environments. That includes providing physical & software security and putting redundancies in place to ensure efficiency and reliability. These cornerstones serve as the bedrock of colocation facilities, providing businesses with a solid foundation for their digital operations.
So, by entrusting their servers to the colocation data center, small businesses unlock several benefits that streamline IT operations. In effect, this elevates their capabilities in today's competitive landscape.
Let's unpack those benefits to understand the value of this type of web hosting.
1 Cost-Effectiveness
Since colocation plans are much more expensive than other web hosting options, people misconstrue this as a service that only tech start-ups with deep pockets or large corporations and organizations can afford. But that couldn't be further from the truth.
Setting up your own data center comes with a raft of costs, from planning and construction to ongoing maintenance and staffing. However, colocation hosting presents a different perspective on cost efficiency.
Instead of bearing the high upfront costs associated with building and maintaining an on-premise mini-data center, small businesses can leverage the infrastructure of a professional data center by collocating their servers.
A key advantage of colocation hosting is its economies of scale. By spreading power, cooling, and facility maintenance costs across multiple tenants, colocation companies can reduce server operation expenses significantly. As a result, small businesses receive enterprise-level infrastructure and services without the hefty price tag.
2 Top-of-the-line Security
Colocation data centers do not leave anything to chance and usually implement tight security measures to protect against physical and cyber threats. For a small business, this is one less headache to worry about, as it means company data and sensitive customer information will remain secure.
On the physical front, this includes maintaining fortress-like facilities complete with perimeter fencing, 24/7 security personnel, surveillance systems, restricted access, multi-factor authentication systems for entry points, fire suppression systems, and securing servers in locked and monitored cages or individual cabinets.
Moreover, these facilities deploy multiple software security measures. That can include network firewalls, intrusion detection and prevention systems, data encryption, dedicated network connections, and physical separation between client servers.
3 Access to Cutting-Edge Infrastructure
In line with their top-level security, colocation facilities typically feature advanced infrastructure and amenities, such as redundant power feeds, high-speed internet connectivity, and environmental controls. For small businesses, these amenities may be cost-prohibitive to set up. Yet, they remain essential for ensuring the reliability and performance of their IT infrastructure and operations.
For instance, robust internet connectivity ensures fast data transfers from business servers to customer gadgets, while ideal operating temperatures prevent servers from overheating, shutting down, or, even worse, getting damaged.
4 Reliability & Uptime
Redundancy measures in colocation data centers do not just extend to power supplies. They also usually have backups in place for cooling systems and internet connections. Additionally, facility technicians are always around to ensure connectivity issues or unfortunate circumstances get resolved quickly.
So, even when statewide power outages or natural disasters occur, your servers and online presence remain operational, ensuring business does not grind to a halt.
5 Low Latency
Another huge benefit for small businesses going the colocation web hosting route is reduced network latency.
Colocation facilities are often strategically located near major Internet exchange points (IXPs). By being physically close to these network hubs, your servers have a shorter distance to travel for data exchange, leading to faster communication and reduced latency. As a result, staff members will seamlessly upload and share business-related data quickly and efficiently, thus enhancing overall productivity.
Also, colocation providers go all out on high-performance networks with low-latency equipment and optimized routing paths. This investment helps to ensure that your data travels in the quickest, most efficient manner between your servers and end-users. Consequently, websites and applications stored in a colocation server load faster, providing smoother experiences for users, particularly in interactive applications such as online gaming or financial trading.
6 Scalability
Scaling up with colocation hosting is easy, and so is downgrading resources. Colocation service providers often offer flexible scalability options, allowing businesses to expand or contract their server capacity as needed.
If your business is growing, you can upgrade your hardware, request more bandwidth, or opt for additional server space, spending far less than purchasing more equipment and finding extra space for an office server room.
Alternatively, if your business experiences fluctuations in demand for service, you can always customize your IT infrastructure to your specific needs, ensuring you only pay for the resources you use. For example, you could change server configuration or request your colocation provider to lower power and cooling capacity during the off-peak season.
Colocation-Related Challenges Small Businesses Should Know About
As we have established, colocation services offer immeasurable benefits. However, small businesses may face some challenges when utilizing this hosting solution. These include:
- High Initial Set-Up Costs: Although colocation can be cost-effective in the long run, there are often significant upfront costs associated with migrating servers to a data center and setting up the necessary networking infrastructure. Small businesses bear the cost of these expenses when looking to take on this hosting service.
- Distance & Accessibility Issues: Both hardware and software server maintenance falls on the client in a colocation set-up. That means having to make multiple trips to the data center whenever the need calls for it. If the colocation center is far from the business's headquarters or lacks convenient transportation options (e.g., proximity to an airport), accessing the facility for server maintenance or troubleshooting may be challenging and costly.
- Need for Technical Experts: Managing servers in a colocation facility requires technical expertise in server administration, networking, and infrastructure management. Small businesses may need to invest in training or hire IT staff with the necessary skills to manage their colocated servers effectively.
- Vendor Lock-in: Unlike other web hosting options where you can switch plans without hassle, colocation is more of a long-term commitment. Migrating servers to a colocation facility creates a degree of vendor lock-in. That's because businesses become heavily reliant on the services and infrastructure provided by the colocation provider. Switching to a different provider or bringing servers back in-house will be complex and costly.
Key Factors to Consider When Selecting Colocation Hosting Services
Choosing a colocation provider is a significant decision for your business. After all, you will be entrusting a third party with expensive equipment critical to the operation of your business. The last thing you want to end up with is buyer's remorse on move-in day.
Selecting the right service provider is also vital for business success, as it will ensure your infrastructure operates efficiently and securely. Therefore, you should take the time to compare several options and choose wisely. To help make the process easier, here are the key factors to consider:
1 Location
Location is a deciding factor when selecting colocation services and one you should look at from several fronts. First of all, consider the physical distance of the facility from your business location, as it will impact factors like latency, disaster recovery planning, and potential on-site visits for maintenance or upgrades.
Next, you will want to choose a facility that is geographically convenient, considering susceptibility to natural disasters such as flooding and earthquakes.
Lastly, choose a colocation data center that's close to network hubs. Doing so provides the benefit of reliable network connections and diverse carrier options to optimize performance and avoid reliance on a single provider.
2 Service Level Agreement (SLA)
An SLA is a contract between you and a colocation hosting service provider. It details the range of and expected services the facility will offer.
Before making the final commitment, review the provided SLA, including uptime guarantees, response times for support requests, and maintenance schedules.
It is essential that the terms and conditions of the contract align with your business requirements and expectations for service availability and performance.
3 Rack/Cabinet Size
Rack and cabinet size is a crucial consideration for colocation hosting because it will directly impact the capacity and scalability of your IT infrastructure within the facility. Selecting appropriately sized racks/cabinets also helps ensure adequate airflow around your equipment, reducing the risk of equipment failure and downtime due to thermal issues.
So, measure your equipment to ensure you acquire the right rack or cabinet size. It would not hurt to opt for slightly larger racks or cabinets as it will provide room for expansion, allowing you to add more servers or equipment as your business grows without the need to invest in additional space.
4 Flexibility in Scalability
Carefully evaluate the scalability options the colocation facility provides. Do they offer the ability to easily add or remove servers, upgrade hardware, and adjust resources as needed? A reliable provider should accommodate your business's growth and evolving IT needs.
5 Network Connectivity
Ask about the network connectivity options at your colocation facility of choice, including carrier neutrality, diverse network routes, and peering relationships with major internet exchanges. Go for a facility that can provide robust and reliable connectivity for your business's network infrastructure.
6 Cost & Value Balance
Lastly, try not to be biased on pricing only when seeking a colocation provider. Instead, assess whether the services you will receive are worth the price.
Discuss pricing models and range of services across different options with your colocation provider while seeking the best option based on your specific requirements. Look into features like bandwidth charges, customer support services, uptime guarantee, and resilience measures.
Exploring Remote, Smart, & Expert Hands as an Add-on to Colocation Hosting
Are you keen on colocating your servers but not thrilled about the back-and-forth trips you or your IT staff will make for hardware maintenance and software management? If so, you may want to consider the managed version of colocation hosting, which includes additional assistance of technical support for your servers.
The three options to choose from include:
1. Remote Hands
In colocation services, remote hands refer to technical support provided by the data center staff to assist clients with tasks that require physical access to their colocated equipment. These tasks generally cover hardware installation, troubleshooting, maintenance, and basic repairs.
The owner of the servers never has to show up to the site or send their personnel, hence the term remote.
Here's a quick breakdown of what remote hands services typically entail:
- Helping new clients install servers, networking equipment, and other hardware into their racks or cabinets
- Cabling and connectivity tasks, ranging from cable organization, management, and patching to connecting equipment to power sources, network switches, and other infrastructure components
- Basic physical maintenance tasks, such as cleaning equipment or performing visual inspections to ensure that hardware is operating properly
- Power cycling equipment, resetting devices, and taking any other necessary immediate actions to restore service and minimize downtime in the event of a critical issue
- Checking and reporting on the health and performance of equipment
2. Smart Hands
It is important to note that while some colocation providers use the terms smart and remote hands interchangeably, the two services are different.
Remote hands encompass odd jobs, whereas smart services include tasks that require some technical expertise and knowledge.
In summary, smart hands service is an extension of remote hands, dealing with more complex tasks. These include:
- Setting up firewalls or other security software
- Performing advanced server diagnostics and troubleshooting
- Installing operating systems or specific software applications
- Upgrading server components or performing hardware modifications
- Repair and maintenance tasks of replacing fans, power supplies, or hard drives
3. Expert Hands
In the colocation hosting world, expert hands represent a highly specialized service whose scope goes beyond both smart and remote hands. It is suitable for situations that require advanced technical skills or industry-specific knowledge.
Essentially, this colocation hosting add-on option is ideal for businesses lacking internal IT resources, operating in highly regulated industries, or featuring complex server environments. Its expert scope of tasks includes:
- Planning and design of server deployments
- Server migration and optimization
- Ongoing server maintenance & monitoring
- Security consulting and implementation
- Disaster recovery planning and assistance
- In-depth server configuration and troubleshooting
- Specialized software installation and configuration
- Advanced network analysis and optimization
- Security audits and vulnerability assessments
Conclusion
Throughout this exploration, we have identified what is colocation hosting, pointed out its benefits, and acknowledged the challenges businesses face with this web hosting service.
While those challenges would be a cause for concern, with careful consideration, small businesses can mitigate them and make informed decisions when selecting a colocation provider. With remote, smart, and expert hands service as add-ons, this pretty much counteracts the cons associated with colocation.
So, the big question remains- is colocation hosting for small businesses a viable option? Well, this depends on the nature of your enterprise. The hosting option is a cost-effective choice if your business is growing and your tiny server room or current hosting plan is not cutting it anymore.
It is also worth considering if you want to bolster your IT department/online presence but do not want to put out the large amount of resources that go into setting up an onsite data facility.
Ultimately, colocation hosting for small businesses offers a pathway to efficiency, reliability, and scalability, making it a compelling option for meeting their IT needs now and in the future.
Trust in our secure and efficient infrastructure to keep your business IT operations running smoothly and your data protected. Get in touch to learn more about our custom colocation plans.
