The Benefits Of Colocation

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By - 27 July 2011

In step with today’s developments in the computing industry, colocation is one timely innovation. Most of the businesses now (save for the biggest ones) employ colocation to take care of their IT needs.

Because of the speed in the rise of internet business, big corporations are now slowly outsourcing their data centers. Instead of building and operating one, companies are now into colocation.

Companies are now beginning to see the many benefits of colocation. The major reasons include the following list.


Many colocation providers offer multiple-level systems redundancy. In layman’s terms, this ensures the client will have outage protection, temperature regulation, network reliability and security.

These redundancy measures are too expensive for client-companies to provide in an in-house business setup. Colocation providers ensure that their customers’ network is up at all times.


Today’s colocation centers offer increased physical and network security measures. Some facilities require escorts for customers, others employ PIN codes, and still others use proximity card access systems for customers.

Server cages and cabinets have the standard state-of-the-art locks for security. Many data centers have round the clock monitoring staff assigned. Sometimes, colocation providers offer security audit and periodic security advising services.

For in-house setups, your sensitive data is always at risk. You may invest in tape backups, video surveillance, and armed security guards, but colocation is more effective and affordable.

Lower bandwidth costs

In an in-house setup for your server, you are paying more in anticipation for any spike in your web traffic. Most of the time, you are using only a small portion of the bandwidth you paid for.

When you are leasing bandwidth from a colocation provider, you pay only for the small bandwidth you actually need. Any spike that may occur is always taken care of because many data centers have huge data pipes.

Secure power supply

A colocation provider will always have redundant power sources that cannot be duplicated in an in-house setup because of the prohibitive costs. These colocation companies provide full surge and lightning protection, multiple battery backups, and generators for extended outages.

This full service package comes with professional expertise and equipments that most companies with standalone IT setups may not be able to meet.


Colocation provides a higher level of convenience for the client because they often use more than one ISP (internet service provider) or multiple optical fiber circuits. The client will not have to provide space for their servers.

Moreover, clients can upgrade power, memory, and software as needed because of ownership of server equipment. The client’s server will also stay up even during a company move.


Colocation facilities are designed to protect your data and keep your servers running even under severe conditions (fire, floods, humidity, air pollution, etc.) Depending on the location, your data may also be protected against earthquakes and hurricanes.

This extra protection is a lot cheaper (compared to an in-house setup) because it is shared by all the other clients of the colocation provider.

Overall considerations

For most SMBs (small and medium-sized businesses), colocation can provide tremendous cost and other types of benefits compared to setting up the same system in-house.

Colocation is one practical choice for a company that still lacks the financial resources and physical space to maintain internet hosting operations.

About the Author

Anna Li