10 Things You Need To Consider As A Business Owner Before Investing In Colocation

January 19, 2023
Photo by Paul Hanaoka on Unsplash

As a business owner, it is important to consider the different investments you can make to grow your business. One type of investment that all businesses should consider is colocation. Colocation involves renting server space from another company, allowing you to store and access data without purchasing or maintaining physical servers in-house.

This can provide significant savings in terms of cost and time, making it an attractive option for many businesses. Before investing in colocation, there are several factors you should consider to ensure that it is the right choice for your business. Below are some of the important things to consider when investing in colocation.

1. Do Your Research

Before jumping into a colocation investment, it is important to research and find out as much as possible about the provider. Ask questions such as: what kind of servers they provide, how secure their data center is, and what services are included in the package.

It’s also important to understand the provider’s network capabilities, such as connection type and bandwidth. This will give you a clearer picture of what you can expect from the provider and whether their services match your business needs.

2. Consider The Costs Associated With A Colocation Service

Considering the costs associated with a colocation service before investing is important. Typically, you will be required to pay for server space, power consumption, cooling, and additional services such as maintenance, support, or backup. You should also factor in the cost of equipment, such as servers, routers, or firewalls. In some cases, the provider may offer discounts on long-term contracts or bulk orders.

You should also consider the cost of setting up and managing the colocation service. Depending on the complexity of your setup, you may be required to hire IT professionals to manage the service on your behalf. Colocation with Macquarie Data Centres is almost effortless, with a range of managed services and their on-demand infrastructure providing businesses with the peace of mind that their colocation requirements are taken care of.

3. Assess If There Would Be Any Latency Issues

When investigating colocation services, it is important to assess whether there would be any latency issues. Latency is the amount of time it takes for data to move between the client and the server, which can significantly impact performance.

If there is less latency, this can cause a decrease in performance and reliability. Choosing a provider with low latency is important, as this will ensure the highest performance levels for your business. Additionally, find out what type of support they offer in case of any issues with latency.

Another factor to consider is the geographic location of the provider. If your business is located across multiple countries, ensure that the colocation service has a presence in each country to reduce latency and improve performance.

4. Analyze If Certain Third-Party Applications

It is also important to analyze if certain third-party applications and services can be used with the colocation service. Before investing, you should investigate if the provider offers support for any third-party applications, such as data backup and recovery services. Additionally, find out what level of control you have over the applications and services, as this will help you determine which provider meets your specific needs.

Also, consider if the colocation service offers any additional features that can help reduce costs, such as energy-saving capabilities. Most colocation providers now offer advanced power management systems which automatically adjust the server’s power consumption levels to ensure maximum efficiency, resulting in significant cost savings for businesses over time.

5. Evaluate What Kind Of Reliability Guarantees Are Given

When evaluating colocation services, it is important to evaluate the reliability guarantees given. A service-level agreement (SLA) typically outlines the maximum downtime and response times expected from the provider. It is important to understand what kind of reliability guarantees the provider provides and whether they are sufficient for your business needs.

In addition, you should also inquire about the availability of their support staff and how long it usually takes for them to respond. It is important to select a colocation service with a reliable support team who can address any issues quickly and efficiently.

6. Make Sure That Their Data Centers Are SSAE-18 Compliant

Finally, make sure that the data centers of the colocation provider you are considering are SSAE-18 compliant. This compliance standard ensures that the service provider has implemented industry-standard security measures to protect your data, such as physical and virtual firewalls, access control systems, regular security audits, and data encryption.

Moreover, find out what kind of disaster recovery plans the provider has in place in case of a natural disaster or a power outage. This will ensure that your data is always secure, no matter what happens.

7. Consider Bandwidth Availability

When considering colocation services, it is also important to evaluate the bandwidth availability of the provider. Bandwidth refers to the amount of data that can be transferred between the client and the server. If the provider does not have enough bandwidth available, this could potentially lead to slow performance or even downtime.

Therefore, it is important to inquire about the bandwidth options available and if there are any additional charges associated with them. Additionally, you should also find out if the provider can scale up or down the bandwidth as needed so that your business is never over or under-provisioned.

8. Ensure That Their Customer Support Is Good

Ensuring that the colocation service provider has good customer support is important. After all, you may encounter technical issues or have to ask questions at some point. Therefore, ensuring that the provider offers reliable and professional customer support is important.

Find out what customer support options are available, such as phone support, live chat, or online help desk. It is also important to determine the response times for each option and whether the customer support staff is knowledgeable about the provider’s services. Additionally, find out if there is any customer service guarantee offered by the provider, such as a refund if the customer is unsatisfied with the service.

9. Review Company Ratings And Reviews

Finally, it is important to review company ratings and reviews before making a decision. While the provider’s website may look impressive, you should still read through independent reviews or customer testimonials to better understand their service.

Checking with external sources such as the Better Business Bureau or social media networks can help you determine the quality of customer service and technical support offered by the provider. Additionally, look at any awards or certifications the provider has won. This can be a good indicator of their reliability and quality of service.

10. Don’t Forget To Account For Any Additional Costs

It is important to remember to account for any additional costs that may come with colocation services. This could include setup and installation fees, monthly maintenance charges, and other service-related fees. Before signing any contracts or agreements, ensure you know all associated costs. Taking the time to ask in advance could save you from facing unexpected fees later on.

Ask about any discounts or promotions that may be up for grabs, as some providers offer significant reductions on long-term contracts. Additionally, ask if additional features are included in the package or if they come at an extra cost. Knowing the full extent of the costs will help you make an informed decision when selecting the right colocation provider.

Final Thoughts

When investing in colocation services, business owners need to consider their needs and the features offered by potential providers. Doing thorough research and evaluating all the above factors can help you make an informed decision that best suits your business. Ultimately, finding the right provider can ensure that you have a reliable, secure, and cost-effective colocation service that meets your business needs.

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