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Colocation Costs What Your Company Needs to Know

Posted by QuoteColo on August 16, 2020 - Updated on December 13, 2022
1U Colocation Advantages and Pricing

What Your Company Needs to Know Regarding Colocation Costs

Many companies today are looking to improve their server operations with colocation. They know that it’s possible to rent space in a data center, which can help to reduce their power costs, the costs of housing their server, and more. Even when collocating, companies will often have full access to and control over their hardware and their data. However, many do not understand the costs associated with colocation, and they may believe that it will be too expensive for them.

Fortunately, this is not the case, as long as you are choosing the right colocation center. Let’s look at the biggest considerations in pricing when it comes to colocation, so you have a better understanding of how much it will cost.

The Cost of the Hardware

When using a colocation company, you will be the one to supply your own hardware to the company. Since you will be using your own equipment, you need to buy that equipment beforehand. Even though this may seem costly upfront, it will mean that you own the equipment. It’s a one-time cost for the hardware you need. It’s always a good idea to get a high-quality server that will have the capacity and power needed for your business. Buying your own also gives you more control over what hardware components you choose.

The Rack Capacity

One of the main factors in the price of colocation will be the cost of the physical rental space for the server. Racks will be measured in rack units or per square foot. Keep in mind that not all racks are the same size. Some are different sizes, which means that the costs can vary. Many things can cause the cost of rack space to vary, so this is one of the first and most important things that you will need to look at when calculating your costs.

Cost of Electricity

Electricity costs should be calculated, as well. The price of electricity will vary depending on where the colocation center is located. You will find that many colocation centers opt to build in locations where the electrical costs tend to be lower, which helps to reduce the cost to the end-users. However, this is not always the case. Check to see how much the electricity costs at the site you are considering, and what it will run you each month.

Getting Set Up

One of the other potential costs you have to consider is the cost of setting everything up at the colocation center. Some companies choose to ship their hardware to the colocation center, which will then set everything up and get it running. Others who are near the center, or who can send someone to the data center, may opt to take care of the setup themselves.

Cost of Remote Hands

Some colocation companies also offer remote hands. This is a service that is available for troubleshooting in the event there is a problem with the server once it is in the colocation center. Sometimes, this service is included, but other companies may have an extra fee for remote hands. Choosing this service can help to make it easier for you and provide you with more peace of mind in case of an issue.

Bandwidth Blending

Many companies are choosing colocation because they want to blend their bandwidth. It means that users can directly connect to an ISP, which can provide much faster speed. When you choose a carrier-neutral colocation center, it becomes possible to create a blend of bandwidth. This means that if an Internet provider in the area goes down, it’s possible to transfer workloads to a different provider to ensure service is still available.

The Location

The location of the colocation center is important for more than just the cost of electricity. You will find that colocation centers that are located in areas where the real estate costs are high will have higher prices. Naturally, the opposite is true, as well. Other operational costs, such as the wages of the people who are working at the colocation company will affect the prices that they have to charge for their services.

Fortunately, there are plenty of colocation centers located around the world, so finding a solution that works well and that is affordable should not be too difficult.

Talk with the Colocation Provider

You will want to make sure that you speak with the colocation provider you are considering so you can learn not only what they offer, but what your costs will be every month. Different providers will have different prices of course, as well as different electricity costs based on the location, as mentioned above. When you are making your choice, make sure that you get several quotes from different companies. Find the one that has the features you need, as well as a price your company can afford.


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