Data Center Colocation Providers

Data center colocation providers offer businesses the ability to rent space for servers and other computing hardware within a third-party facility, rather than housing the equipment in their own data centers. Colocation services include physical space, power, cooling, network connectivity, and physical security, allowing customers to deploy and manage their IT infrastructure without needing to invest in the construction, maintenance, and operation of an in-house data center.

Key Components of Data Center Colocation Provider Services

• Physical space. Colocation providers offer a variety of space options based on customer needs, including individual server racks where customers can install their hardware, a secured area with multiple racks within a shared data center environment, and dedicated rooms for companies that require a high level of control over their environment.
• Power. Data center colocation facilities provide redundant, reliable power supplies to ensure uptime and availability. Key features include Uninterruptible Power Supply (UPS) units that ensures a continuous power supply during short outages, backup generators that kick in during longer power outages, and redundant power feeds that reduce the risk of downtime due to power failures.
• Cooling. Colocation facilities are designed to maintain an optimal environment for hardware performance. This includes precision cooling systems that maintain temperature and humidity levels to prevent overheating and hot/cold aisle containment that maximizes cooling efficiency by separating cold air intake from hot air exhaust.
• Network connectivity. Colocation providers offer diverse and redundant network options to ensure high availability and low latency, including carrier-neutral connectivity so customers can choose from multiple Internet Service Providers (ISPs) for network redundancy, cross-connects that allows customers to directly connect their equipment with other network carriers, services, or business partners within the data center, and peering which allows companies to exchange traffic directly with one another.
• Security. Physical and digital security is paramount in colocation facilities, which typically offer 24/7 onsite security, video surveillance, and strict control mechanisms to prevent unauthorized access to the data center or specific customer spaces.

Types of Data Center Colocation Providers

• Retail colocation providers. Retail colocation offers smaller-scale services for companies with limited IT infrastructure needs. These customers rent individual server racks or small caged areas. This is suitable for businesses that require a cost-effective solution without the overhead of managing an entire data center.
• Wholesale colocation providers. Wholesale colocation caters to businesses with large-scale data center requirements. Customers rent significant amounts of space, such as entire data halls or private suites. Wholesale colocation is ideal for enterprises with large IT infrastructure or cloud providers needing to deploy significant capacity.
• Hybrid cloud-based colocation providers. Hybrid cloud-based colocation offers a mix of on-premise and cloud infrastructure services, allowing businesses to host their physical hardware in a data center while integrating with public or private cloud environments. This approach enables flexible scalability, enhanced data security, and optimized performance by balancing traditional colocation with cloud resources.

Benefits of Colocation

• Cost savings. Building and maintaining an in-house data center can be cost-prohibitive. Colocation providers spread the costs of infrastructure, utilities, and security among many clients, making it a more affordable option.
• Scalability. Businesses can scale their IT infrastructure easily by leasing additional space or services as needed, without the capital investment required for building out new facilities.
• Reliability and redundancy. Colocation facilities are built to high standards, often adhering to Tier III or Tier IV certifications, which provide better redundancy and uptime.
• Focus on core business. By outsourcing data center operations, companies can focus on their core business activities, allowing the colocation provider to manage day-to-day facility operations, maintenance, and upgrades.

Considerations When Choosing a Colocation Provider

• Location. Proximity to company offices or key operations can reduce latency and make on-site visits more convenient. Some companies may prefer colocation in specific geographic regions to comply with data sovereignty regulations.
• Power pricing model. Colocation data center providers typically offer various pricing models to accommodate the different needs and usage patterns of their customers.
• Compliance. Industry-specific compliance standards, such as HIPAA, PCI-DSS, and SOC 2, should be met by the provider, especially for companies handling sensitive data.
• Service-level agreements (SLAs). It’s essential to review the provider’s SLAs to ensure their guarantees for uptime, power, and cooling thresholds and response times align with your requirements.
• Future-proofing. The ability to scale services and infrastructure is vital as IT needs evolve. Providers offering robust, scalable infrastructure and connections to public clouds can future-proof an organization’s data center strategy.

Challenges of Managing Colocation Data Centers

Managing infrastructure in a colocation data center environment presents unique challenges, especially when compared to fully-owned, on-premise data centers. Key challenges include:

• Limited available space. Vacant colocation space in primary markets is at an all-time low which impacts scalability and expansions for customers. Tenants must increase the utilization of their existing rack space and power capacity without introducing to get more out of the resources they already have.
• Increasing colocation costs. Available colocation capacity is scarce and now comes at a premium. Tenants must manage their power consumption to save costs, increase efficiency, and maintain uptime.
• Capacity planning. Managing the growth of IT infrastructure in a colocation environment can be complex. Customers must anticipate future needs for power, space, and network capacity to avoid disruptions. Expanding infrastructure within the constraints of an existing colocation contract or facility might require costly renegotiations or migrations.
• Limited physical access. Since the data center is managed by a third-party provider, on-site visits may be impractical, require advance planning, or come with access restrictions. This can lead to delays in troubleshooting hardware issues or performing routine maintenance, especially for customers located far from the colocation site.
• Coordination with provider. Colocation customers must maintain close communication with the provider for power, cooling, and network changes or upgrades. Any modifications to infrastructure often need to be coordinated with the colocation provider’s staff, which can lead to slower response times.
• Monitoring and visibility. Visibility into real-time conditions, such as power usage and temperature can be limited in colocation environments. Providers may offer basic monitoring, but customers often lack granular, real-time insights, making it harder to optimize resources or quickly respond to issues.

Simplify Colocation Data Center Management with DCIM Software

Data Center Infrastructure Management (DCIM) software plays a crucial role in addressing the complexities of managing infrastructure in a colocation environment. Key benefits of using DCIM software for colocation data centers include:

• Enhanced monitoring and visibility. DCIM software provides real-time monitoring of power usage, temperature, and humidity, giving businesses detailed insights into their colocation infrastructure. This enables proactive management and quicker responses to any potential issues, reducing downtime and optimizing efficiency. Monitoring power usage and setting threshold and alerts helps you avoid peak load surcharges during high-demand periods and tracking energy consumption can help validate the accuracy of colo power charges, ensuring that you are billed based on actual usage.
• Capacity planning and forecasting. DCIM tools allow for accurate capacity planning by tracking space, power, cooling, and port capacity and utilization. Businesses can use this data to forecast future needs, plan infrastructure expansions, and avoid overprovisioning or underutilization of resources.
• Asset tracking. DCIM software enables detailed asset tracking, helping organizations keep a precise inventory of their IT equipment, supporting infrastructure, parts, and spares. This makes it easier to manage lifecycle events, such as hardware replacements or decommissioning, and ensure proper documentation of all colocated assets.
• Remote management. With DCIM, businesses can remotely manage their colocation assets without needing to be physically present at the data center.

Want to see how Sunbird’s DCIM software can make it easier for you to remotely manage your colocation data center? Get your free test drive now!