Colocation has become popular as a way for businesses to access private data facilities at a low cost and with minimal commitment. It is especially useful for accessing locations with high real estate costs such as major cities. At a high level colocation works in much the same way in any location. At a more detailed level, however, there are some differences between different areas. With that in mind, here is a simple guide to colocation in Phoenix.
Historically, Phoenix’s economy was based on the “5Cs” of copper, cattle, climate, cotton, and citrus. In the early 1920s, however, the establishment of rail and air infrastructure laid the foundations for a transition to a more modern economy. The city’s growth really began in the 1950s when its position and transport infrastructure allowed it to develop a strong manufacturing and logistics center.
Manufacturing is still a key sector today. Other important sectors include tourism, leisure and hospitality, healthcare and biotechnology, aerospace and technology, and financial services. Companies range from startups to Fortune 500 companies via numerous SMBs.
In addition to the private sector, the government (local, state, and federal) is also a major employer. Phoenix is the capital of both Maricopa County and Arizona State so it is the hub for most of the administrative functions of both. It also hosts Luke Air Force Base.
Geography matters even in cyberspace. The closer you can host your services and/or data to your users, the quicker you can serve them. This is a major competitive advantage.
Phoenix is home to over 1.5 million people and is one of the key hubs for the USA, particularly the Southwest. It’s therefore the sort of location where many businesses would want to have some level of presence.
For some businesses, using a public cloud service provider with a data center in Phoenix would be sufficient. For others, however, there is a clear benefit to using a private data center.
For many of these companies, building and running an in-house data center is likely to be far too much of a load (both financial and administrative). This is where colocation in Phoenix comes into its own. Businesses get access to data center infrastructure without the upfront cost of buying it or the hassle of running it.
Here is an overview of the 7 main factors influencing the cost of colocation in Phoenix. Overall, these are the same factors that influence the cost of colocation anywhere. There are, however, some details that have particular relevance for colocation in Phoenix.
Real estate is always a big part of the cost of any physical infrastructure and this is as true of colocation in Phoenix as it is of anywhere else. There is, however, some variation in the cost of real estate in different parts of Phoenix’s approximately 500 square mile area.
It can therefore be very worthwhile to research the city thoroughly to see which neighborhoods offer your particular business the best value for money.
A data center’s tier level is essentially a measure of its resilience. This is evaluated based on uptime guarantees and fault tolerance. Cost is also taken into consideration. Higher tiers provide higher levels of protection but at a higher price.
Energy efficiency is a huge consideration in Phoenix since robust cooling is a must. It’s no coincidence that Phoenix’s growth into an economic powerhouse coincided with the development of air conditioning. Summers are brutally hot even at night, due to the urban heat island effect. Basically, this means that heat is trapped in concrete during the day and released at night.
Network connectivity is often linked with location as the colocation vendors located closest to the main network hubs can generally offer the best connections. These vendors can often charge more than vendors in areas with lower-grade connections.
In the context of colocation, security typically covers business continuity and disaster recovery as well as protection from real-world and cyber threats. In the context of colocation in Phoenix, environmental threats do need to be taken very seriously. Phoenix is notorious for monsoons in summer. These can trigger flash floods, high winds, and dust storms.
Most colocation vendors in Phoenix can provide some level of on-site support. The more they deliver and the quicker they deliver it, the more they are likely to charge.
As with most contracts, the more you offer the vendor, the more you are likely to get in return. Businesses that commit to high-value contracts are therefore more likely to get favorable terms on colocation in Phoenix than those that prioritize flexibility.
If you are looking for colocation services in Phoenix, DataBank is an excellent choice. DataBank has three state-of-the-art data centers in the Phoenix area, which combine to offer 9,890 square feet of raised floor space, and 1MW critical IT load. Learn more about DataBank’s Phoenix data centers.
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