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How to Know It’s Time to Move Your IT Infrastructure to a Multi-Tenant / Colocation Data Center
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How to Know It’s Time to Move Your IT Infrastructure to a Multi-Tenant / Colocation Data Center

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How to Know It’s Time to Move Your IT Infrastructure to a Multi-Tenant / Colocation Data Center

By Mike Alvaro, Senior Solutions Architect, DataBank 

Your IT infrastructure plays a critical role in the success of your business, and it is essential to keep it updated and modernized. Yet, beyond managing IT assets, it’s also important to pick a strategy that is right for your business.

Many companies start by managing on-premises servers, networks, databases, applications, and workloads, but soon realize they would be better served by migrating to a multi-tenant data center, also known as colocation.

There are usually many different reasons behind this decision: complexities of managing your own data centers, rising costs, overwhelmed IT resources, a demand for more computing power, geographic diversity for disaster recovery, evolving edge-computing strategies, and more. For many companies, it can be hard to tell when it is the right time to make the move.

To help, let’s take a closer look at some of the most common key indicators. Are you asking any of these questions?

Security concerns: Have your worries about security – both physical and digital – grown? You’re not alone. One of the primary benefits of a multi-tenant data center is increased security. As businesses continue to collect and store more sensitive data, it’s crucial to have a secure infrastructure in place. Colocation data centers are equipped with state-of-the-art security measures, such as biometric access controls, multi-factor authentication, and 24/7 monitoring, that can provide a higher level of security than most in-house IT infrastructures.

Also, managed security and specialized cybersecurity solutions at colocation data centers will protect your most critical digital assets.

Compliance requirements: Do you know whether your systems and processes are compliant? How would you respond if you were to be audited? For businesses that are subject to regulatory compliance requirements, such as FISMA, SOC 2, HIPAA, or PCI-DSS, moving to a colocation data center can provide peace of mind. Colocation data centers are designed to meet a wide array of compliance requirements that provide a secure environment for storing and processing sensitive data.

Scalability: Is your current model hampering your ability to grow? Another significant advantage of a colocation data center is scalability. As businesses grow and change, their IT infrastructure must keep up. Multi-tenant data centers offer scalability options that allow businesses to quickly increase their IT resources as needed, without the need to manage expanded facility space and operations.

This scalability can be a valuable asset to businesses that are looking to grow rapidly, or those that have unpredictable workloads.

Cost savings and control: Is the cost of managing your own data center spinning out of your control? Moving to a colocation data center can also result in significant cost savings. By sharing resources with other tenants, businesses can benefit from economies of scale, which can reduce the costs of maintaining their IT infrastructure, such as energy-efficient equipment and cooling systems, which can significantly reduce energy costs.

Additionally, moving to a colocation data center also moves your management costs from a CapEx to an OpEx model for greater control.

Outdated technology: Are you simply making do with your current technology stack? The best colocation data center providers continually invest in the latest technology, which ensures that businesses have access, without the need to invest in new equipment or infrastructure. The equipment you use and the facilities where is all resides must stay ahead of your needs.

Disaster recovery: If a disaster where to strike, how long would it be before you can recover precious data? A colocation data center can also provide improved disaster recovery options. With multiple redundancies in place, including multiple power sources, backup generators, and backup storage, multi-tenant data centers are designed to provide uninterrupted service, even in the event of a disaster.

Additionally, colocation data center have a wide geographic footprint. (DataBank currently has 65+). This gives you options when it comes to selecting two or more data centers to a create a geographic diversity strategy to best support disaster recovery objectives.

Moving to a multi-tenant / colocation data center can provide numerous benefits to businesses, including increased security, scalability, cost savings, and access to the latest technology. If your business is facing security concerns, needs to scale quickly, is using outdated equipment, is subject to regulatory compliance requirements, or is looking to improve its disaster recovery capabilities, chances are good that it’s time to consider a move to a multi-tenant data center.


Interested in learning more about Databank, and how we’re helping our customers with the best colocation options and services to drive their business? Visit today.

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