SSAE 16 compliance is the latest and greatest audit developed by the American Institute of Certified Public Accountants (AICPA) for colocation data center providers. Compared to the older SAS70 audit methodology, SSAE 16 colocation providers are held to a more strict and comprehensive standard. To become a SSAE 16 colocation provider, the SSAE 16 audit process requires the colocation provider to supply written documentation of all of its operating procedures and data center’s infrastructure and redundancies in place.
Major Benefits of Picking a SSAE 16 Colocation Provider:
Colocation providers that have spent the time, energy and money involved in doing a SSAE16 audit are committed to being the best data center option available. They are reinforcing their marketing and sales claims of having the most redundant, secure and reliable data center infrastructures in place. SSAE16 compliance assures that the data center provider has taken all the steps available to make sure their data center(s) are top notch. Best of all, it is in WRITING backed up by the AICPA!
Picking a compliant SSAE16 data center will give you a competitive and strategic advantage in your company’s marketing and sales efforts. Due to today’s more stringent financial and security regulations, more and more companies are requiring that their supplier are compliant. Picking a SSAE16 compliant data center, will give you an upper hand compared to others who are using generic telecom colocation options that have not met the stringent and written compliance requirements.
Accounting audits like SAS70 and SSAE16 cost over $100,000. By picking a colocation provider that is already compliant, you save both time and money in doing so. Today, your clients may not require the such stringent compliance standards. What happens when you are trying to land a new client who requires it? It is much easier to pick a compliant provider today than to move to a new compliant data center down the road.
Outsourcing your colocation infrastructure with a SSAE16 compliant vendor will allow you to market to new industries and verticals by meeting industry specific regulations. Regulations like PCI compliance, HIPPA and Sarbanes-Oxley are becoming more and more common everyday.
SSAE 16 compliant data centers tend to be about 15-20% more expensive than their generic counterparts but in the long run you will save both time, money and headaches. Consider both local and national data center options in your preferred area and make sure you do your due diligence. Your customers will thank you for it!