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How Data Centers Colocation Reduce IT Costs

Data Centers Cost

Technology has transformed the way businesses are conducted, with Internet and networking bringing speed, efficiency and reliability to businesses. Technology has also increased competition and businesses are continuously trying to access wider customer base and mark their presence in market. But, this scenario has also made it vital for companies to invest in technology assets and create a sound IT infrastructure for their business. Whether it is Intechnology products or IT services, businesses today cannot afford to ignore them. Even though increasing technology assets requires monetary investment, it is vital for keeping up with the business trends. Not only assets, even using IT solutions like data centers incur operational and set-up expenses. But these expenses initially, can reduce operating costs for businesses in the long run.

With companies moving towards integrated information, volume of digital data for any business is mounting and organizations are struggling to manage it. Not just managing, companies also need to secure it and make it readily available when needed. This is the situation where the need of data center and data center services arises. But, for any business setting up their data center is not feasible option, in terms of money, expertise and man power. So instead, businesses can opt for data center colocation. Colocation refers to the scenario where data center provided by one owner is used by multiple customers. The data center owner provides racks, building, network connectivity and staff and companies can put their storage systems and servers in that facility. Not just infrastructure, several data centers also provide routers and firewalls along with other services for customer support.

Data centers reduce complexities of information technology while enabling convergence of IT services and sharing of costs. When businesses prefer to keep their IT infrastructure, within their premises, they incur costs related to the office space, utilities, infrastructure and staff. Also, companies need greater bandwidth internet connectivity to keep the data accessible at all times. In case of colocation, the setup costs are completely absent and companies can also reduce on their internet connectivity costs. By routing networks through external data centers, companies can free their internal networks for better utilization. Maintenance costs of data center are also significantly high. It involves costs of hardware assets like redundant power and cooling systems, and related staff like system administrators, computers operators and other specialists. It is not only setup or maintenance costs that need to be incurred by companies, there are serious risks too. Digital data is one of the most important elements of every business, and in case of of data loss, the loss cannot even be measured in monetary terms. Colocation data centers have secure off-site environment with high standards of security that reduces vulnerability of data to physical damage or loss. For bigger companies that require more than one data center, these expenses, costs and risks grow multifold.

For any business, big or small, finding ways to reduce cost is always a better strategy as a business that is operationally efficient has higher prospects for future growth. Opting for data center colocation is a smart move!