The Role Of Colocation In Modern Digital Infrastructure

Digital infrastructure colocation is the practice of housing the infrastructure needed to support digital services in facilities that are owned and run by third parties. This practice is used by businesses of all sizes and life-stages. With that in mind, here is a straightforward guide to what you need to know about using colocation services for digital infrastructure.

Understanding colocation services

Colocation services are essentially data centers without IT equipment. (This is provided by the clients). This means they provide the following key facilities.

Physical space: Colocation providers offer secure, physical rack space for a business’s servers and networking equipment, allowing organizations to house their hardware offsite.

Power: Colocation facilities are designed with multiple power sources, including backup generators and UPS (uninterruptible power supply) systems, to ensure continuous power availability for hosted equipment.

Cooling systems: Advanced climate control systems maintain optimal temperatures and humidity levels, preventing overheating and protecting equipment longevity.

Network connectivity: High-speed internet connections and interconnectivity options enable seamless data flow. Facilities often offer access to multiple network carriers for low latency and improved redundancy.

Physical security: These facilities implement strong security measures, including biometric access, surveillance cameras, and 24/7 security staff, safeguarding equipment from unauthorized access.

Compliance standards: Many colocation centers adhere to strict industry standards and regulatory requirements (such as SOC 2, GDPR, or HIPAA), supporting clients in meeting legal and compliance obligations.

Disaster recovery options: Redundant systems and backup facilities aid in maintaining operations during unexpected events, contributing to robust disaster recovery.

Benefits of colocation for digital infrastructure

Here are the five main benefits of using colocation services for digital infrastructure.

Cost efficiency: Colocation eliminates the high costs associated with building or buying a private data center. It replaces them with a regular expense that is usually predictable. Moreover, using digital infrastructure colocation often enables companies to unlock economies of scale for key utilities (e.g. electricity) and services (e.g. security).

Scalability and flexibility: Colocation offers the flexibility to scale IT resources up or down based on business needs without major reinvestment. Companies can easily expand their infrastructure in a colocation facility, supporting growth and adapting to demand, while avoiding the physical limitations of an in-house data center.

High-quality connectivity options: Colocation facilities offer access to multiple network carriers and internet service providers, facilitating high-speed connections and low latency. This interconnectivity is especially beneficial for businesses with multi-cloud or hybrid cloud strategies, allowing for seamless integration and optimal data flow across platforms.

Guaranteed uptime and performance: Colocation service providers guarantee a certain level of uptime. The current industry standard is a minimum of “five nines” (99.999% uptime. This is achieved by implementing redundant infrastructure, especially for power, cooling, and network connectivity. Colocation services also usually provide contractually enforceable performance guarantees.

In-built security and compliance: Colocation providers maintain advanced physical and digital security, including 24/7 monitoring, biometric access, and strict cybersecurity protocols. They are also generally certified in a range of data security standards, especially mainstream ones such as PCI/DSS, HIPAA, and GDPR. This provides their clients with a straightforward route to achieving compliance themselves.

Choosing the right digital infrastructure colocation provider

Here are the 7 most important points to consider when choosing a digital infrastructure colocation provider.

Location: Proximity to the business’s headquarters or main operations can reduce both latency and travel costs for equipment maintenance. Choosing a location near major connectivity hubs can also enhance network speed and reliability.

Scalability: Assess whether the colocation provider can accommodate future growth, offering flexible options to expand server space, power, and connectivity as the business evolves. Scalable providers help avoid frequent migrations to larger facilities.

Security standards: Verify that the provider maintains robust physical and cybersecurity measures, such as 24/7 surveillance, biometric access, and firewall protection. Robust security safeguards sensitive data and protects against unauthorized access.

Compliance: Choose a provider that complies with industry regulations relevant to your business, such as GDPR, HIPAA, or SOC 2. Compliance-ready facilities simplify regulatory adherence and reduce risk for businesses in highly regulated industries.

Reliability and uptime guarantees: Check the provider’s Service Level Agreements (SLAs) for uptime. Redundant systems (power, cooling, network) and strong SLAs ensure high availability, which is critical for businesses relying on continuous digital access.

Connectivity options: A colocation provider offering access to multiple network carriers enables flexible, high-speed, and low-latency connections. This is particularly beneficial for hybrid cloud setups, ensuring smooth data transfers and better redundancy.

Cost structure: Evaluate the provider’s cost model, including setup fees, monthly charges, and potential hidden costs. A transparent and manageable pricing structure aligns the colocation costs with business budgets and reduces unexpected expenses.