Colocation Data Center

Colocation Data Center Buying Guide

Colocation data centers offer businesses a cost-effective and secure way to house their IT infrastructure without the significant capital expenditure and operational burden of building and maintaining their own facilities. This guide outlines what colocation entails, key features to look for, typical use cases, implementation considerations, pricing models, and crucial selection criteria.

What Colocation Data Center Services Do

Colocation services involve a business placing its own servers, storage, and networking equipment within a third-party data center facility. The colocation provider supplies the physical space (racks, cages, or private suites), power, cooling, physical security, and network connectivity. The customer retains ownership and control over their hardware and software. This model allows businesses to leverage enterprise-grade infrastructure without the heavy investment in real estate, power grids, cooling systems, and specialized staff.

Key Features to Evaluate

When selecting a colocation provider, prioritize the following features:

• Power Redundancy and Reliability:
  • N+1 or 2N Redundancy: Ensure power systems (UPS, generators) have redundant components to prevent outages.
  • SLA for Uptime: A guaranteed uptime (e.g., 99.999%) is critical.
  • Power Density: Confirm the facility can support your rack's power requirements (kW per rack).
  • Metering Options: Understand how power consumption is measured and billed.
• Cooling Systems:
  • Redundant Cooling: Fault-tolerant cooling infrastructure (CRAC/CRAH units, chillers).
  • Temperature & Humidity Control: Consistent environmental conditions to protect hardware.
• Network Connectivity:
  • Carrier Neutrality: Access to multiple network providers for redundancy and competitive pricing.
  • Bandwidth Options: Scalable bandwidth from 1Gbps to 100Gbps+ connections.
  • Low Latency: Especially important for applications sensitive to network delays.
  • Cross-Connects: Ease and cost of connecting to other tenants or network providers within the facility.
• Physical Security:
  • Multi-Layered Security: Biometric access, 24/7/365 on-site staff, CCTV surveillance, mantrap entrances.
  • Controlled Access: Detailed audit trails of who accesses your equipment.
  • Fire Suppression: Advanced systems (e.g., inert gas) to protect hardware without water damage.
• Compliance Certifications:
  • Industry Standards: Look for SOC 2 Type II, ISO 27001, PCI DSS, HIPAA, GDPR compliance, depending on your industry.
• Remote Hands and Smart Hands Services:
  • Availability of technicians to perform basic tasks (reboots, cable changes) on your behalf.
• Monitoring and Management Tools:
  • Portals for monitoring power consumption, environmental conditions, and network usage.

Use Cases

• Disaster Recovery (DR) and Business Continuity (BC): Establishing an off-site location for critical data and applications.
• Hybrid Cloud Strategies: Extending on-premise infrastructure to a secure, well-connected external facility.
• Geographic Expansion: Establishing a presence in new markets for lower latency to local customers.
• Cost Optimization: Reducing capital expenditure on data center build-outs and ongoing operational costs (power, cooling, maintenance).
• Scalability: Easily expanding rack space and power as IT needs grow without buying new real estate.
• Regulatory Compliance: Meeting specific industry regulations that require off-site data storage or redundancy.

Implementation Considerations

• Procurement Process: Define your exact power, space, and network requirements before engaging providers.
• Logistics and Migration: Plan the shipping, installation, and cutover of your equipment carefully.
• Remote Management Tools: Ensure you have adequate ILO/IPMI or remote console access for your servers.
• Staffing: Determine what tasks your internal team will handle versus what will be outsourced to "remote hands."
• Network Integration: Plan how your colocation equipment will integrate with your existing corporate network.
• Service Level Agreements (SLAs): Thoroughly review and understand the provider's commitments for power uptime, cooling, and network availability.

Pricing Models

Colocation pricing typically involves several components:

• Space:
  • Per Rack Unit (U): For small deployments.
  • Per Rack: For full 42U or 48U racks.
  • Per Cage/Suite: For larger, dedicated secure areas.
• Power:
  • Metered Power (Pay-per-use): Billed based on actual consumption (kWh).
  • Committed Power (Amps/kW): A fixed charge for a specific power allocation. Often includes an allowance for overages.
• Network Bandwidth:
  • Monthly Recurring Cross-Connect Fees: For connecting to carriers or other tenants.
  • Committed Internet Bandwidth (Mbps/Gbps): Fixed rate for a set amount of bandwidth.
  • Burstable/Usage-Based Internet: Billed based on peak usage or 95th percentile.
• One-Time Charges:
  • Setup Fees: For initial rack installation, power circuits, etc.
  • Cross-Connect Installation Fees.
• Optional Services:
  • Remote Hands: Hourly rates for technical assistance.
  • Managed Services: For OS management, backups, security, etc.

Selection Criteria

1. Location: Proximity to your staff for physical access and geographic diversity for DR.
2. Scalability: Can the provider accommodate your future power, space, and network growth?
3. Reliability & Uptime: Proven track record and robust infrastructure (redundancy, SLAs).
4. Security Posture: Comprehensive physical and cyber security measures.
5. Network Ecosystem: Access to diverse carriers and interconnection opportunities.
6. Compliance: Alignment with your industry's regulatory requirements.
7. Customer Support: Responsiveness of "remote hands" and technical support.
8. Cost-Effectiveness: Transparent pricing that aligns with your budget and usage patterns.
9. Reputation & References: Talk to existing customers and check industry reviews.
10. Contract Terms: Scrutinize contract length, renewal terms, and remedies for SLA breaches.