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A Simple Guide To Colocation In New York City

A Simple Guide To Colocation In New York City


Colocation has become a popular way for businesses to establish a real-world base in an area without the upfront cost of running an in-house data center or the ongoing commitment of running one. The practicalities of colocation are much the same across the world. There are, however, some details that change from one area to another. With that in mind here is a quick guide to colocation in New York City.

An overview of the New York City business landscape

New York City is a global financial center, home to a huge range of diverse industries, and a hub for innovation and creativity. The city is particularly well known for tourism, entertainment, media, healthcare, life sciences and technology.

Silicon Alley, the city’s tech district, is home to tech businesses of all shapes, sizes, and ages ranging from established tech giants to innovative startups. The city actively fosters entrepreneurship. Its incubators co-working spaces and innovation hubs provide a conducive environment for collaboration. As a result, it has earned a reputation for supporting the development of breakthrough technologies.

Factors to consider when implementing colocation in New York City

Here is an overview of the 7 key factors to consider when implementing colocation in New York City.

Location and physical space requirements

New York is often known as the Big Apple. Most of the apples are in the state rather than the city but the big is certainly true. New York City as a whole covers over 300 square miles. It is divided into five boroughs, which are also counties. Each of these boroughs/counties is further divided into individual neighborhoods with their own characteristics.

While each neighborhood will bring the general benefit of being in New York City, it will also have a particular set of benefits and challenges. These will be reflected in the cost of colocation there.

In most cities, colocation facilities in the center of the city are more expensive than those further out. In essence, this is still true for colocation in New York City but there is a twist. The twist is that this principle applies to individual areas within New York City. For example, colocation in the center of Manhattan is likely to command a premium price even though Manhattan is, geographically, on the outer limit of New York City.

Tier level

A colocation facility’s tier level is an indication of its resilience as measured by uptime guarantees and fault tolerance. Colocation facilities in higher tiers offer higher levels of protection but typically also charge higher prices. Businesses therefore need to balance security with cost-effectiveness.

Power requirements and energy efficiency

Colocation providers in New York City should have both regular and backup power to ensure that the data center can keep running if there is an outage. It is preferable if they prioritize energy efficiency as this can significantly lower running costs.

Network connectivity options

Network connectivity can be a huge differentiator between different colocation vendors in New York City. It is often closely entwined with location because colocation vendors situated in proximity to network hubs tend to be able to offer the best network connections. These vendors can often charge a significant premium for the benefit of fast, reliable, low-latency connections.

Security and compliance

Real-world security is a major consideration in most cities and New York City is no exception. With that said, the degree of real-world threat is likely to vary by area. Likewise, different businesses may require different levels of protection. In some cases, the same business may need different levels of protection for different types of data. Again, therefore, businesses need to balance reassurance with cost-effectiveness.

Similar comments apply to business continuity, disaster recovery, and compliance. To some extent, these will be relevant to all implementations of colocation in New York. Different businesses will, however, need different levels of protection.

On-site support and SLAs

Most colocation vendors in New York City will offer some level of on-site support. Even if you plan to use your own staff or a separate vendor, it can be useful to check what is on offer and at what price. That way you will know if it is feasible to use your collocation vendor’s support as a contingency option.

Contract length and flexibility

Colocation vendors in New York City value both their revenue and their cash flow as much as any other business. That means customers who are able and willing to commit to a longer-term contract can expect to be able to negotiate more favorable terms than those who want shorter ones. Likewise, the more flexible the contract is, the more the vendor is likely to charge.

Colocation New York City

If you are looking for colocation services in New York City, DataBank is an excellent choice. DataBank has three state-of-the-art data centers in the New York City area, which combine to offer 234,600 square feet of raised floor space, and 41.4MW critical IT load. Learn more about DataBank’s New York data centers.

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