Top 5 Things When Considering Managed Colocation Services & Colocation Providers

The global market for data center colocation services is strong and is expected to experience significant growth.  A report issued in Dec. 2013 by Research and Markets, an international market research and data firm, predicts that from 2013-2018,the market for managed colocation services will grow from $25.72 billion to $43.34 billion.  Read the Research and Markets news release on Reuters here.

There are many factors driving the increased adoption of colocation services.  However, three primary market drivers stand out – global Internet traffic growth, core business competencies and aging data centers.

Global Internet traffic, driven primarily by online video consumption, social media, the Internet of Things and mobile devices, such as tablets and smartphones, continues to increase rapidly.  Managed colocation services offer organizations a cost-effective and reliable solution to house the servers and storage devices that power the Internet economy, and meet their immediate and future IT infrastructure requirements.

For the majority of enterprises and government agencies, the operation of data centers is not a core capability.  Outsourcing data center operations enables a focus on core competencies while reducing the need for capital and personnel.  Read the Verizon Terremark report titled “Verizon Colocation: Grow Your Business Not Your Infrastructure”.

To meet the demands of the 21st century economy, many organizations are faced with the costly and time-intensive prospect of upgrading or replacing their legacy data centers.  For many, the expense is prohibitive considering land acquisition costs, construction expenses and the budget needed to equip and staff a facility capable of meeting current and future IT requirements.  The more effective option for many is to rent (lease or license) space in a facility operated by a provider whose core business is data center operations.

Given that there are hundreds, if not thousands, of data center providers around the globe, the following five recommendations will help any enterprise or government agency evaluate their options when selecting a data center colocation provider.

  • Uptime is table stakes. A provider’s commitment to reliability is absolutely essential. Your colocation provider should offer service level commitments for power and availability at or near 100 percent.  Service levels are not an option and should be clearly communicated and documented. Availability commitments are not a factor in making a decision; rather they are a standard requirement.
  • Make an informed decision. Ask questions, meet key facility personnel and tour the data center. In preparing for a facility tour, prepare a comprehensive list of questions and request documentation.  Be sure that your colocation provider demonstrates a strong commitment to its business and is able to clearly articulate a forward-looking commitment to growth and investment.  Equally as important, a data center provider should be transparent when it comes to sharing operational metrics, providing robust tools for ongoing management and reporting, and should have regularly scheduled meetings with operational and technical staff, as well as executive leadership. The more you know, the better informed decision you can make.
  • Lease vs. License. Fully evaluate your options and understand the long-term costs involved.  While leasing space may be cheaper, it often comes with a lengthy commitment and the requirement that the lessee provide staffing and management at their expense.  Licensing offers greater flexibility, reduced complexity and manages costs over the long term.
  • Portfolio diversity. Determine the breadth and scope of offerings and operations of service providers being considered.  How many data centers do they operate globally and what are their established processes and procedures.  What types of services are offered? In many cases, an enterprise may start as a colocation customer but over time, as their business changes, they may need additional support services or find the need to migrate to a higher value service, such as managed hosting or cloud computing.  A provider should have a broad portfolio to meet the current and future needs of its customers.
  • Security is essential. Well documented security procedures are a must and a colocation provider must be available for you to conduct audits on your IT infrastructure.  While cybersecurity is of vital importance, physical security is of equal concern. What is the use of protecting your data from someone trying to burrow in through your network when they can access a physical data center cage?

One final piece of advice— the old adage holds true, “Nobody ever got fired for hiring a recognized leader.”

Learn more about managed colocation services offered by Verizon Terremark, including current promotional offers.

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