Colocation Overview


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Cloud-based Virtual Networks vs. Colocation

Datacenter co-location and cloud computing are essentially two sides of the same coin. Both are meant to help companies control IT infrastructure costs and improve efficiency.

Cloud-based Virtual Private Servers (VPS) and networks are designed to deliver computer infrastructure as a service, through the shared use of hardware resources for a computing cluster. In a typical cloud, operating costs are spread across multiple users, requiring each user to pay only for the portion of overall cluster resources they actually consume.

Cloud systems almost always rely on the public Internet to deliver encrypted data and applications. This provides an extremely convenient solution, but also exposes users to the typical security risks that are commonly associated with the public Internet. To combat this, many co-location providers offer private interconnects and specialized network systems to transmit data to corporate WAN and LAN systems, providing an added layer of security.

Access to Multiple Carriers

Access to multiple Internet or telecom carriers is one of the advantages that DLS co-location offers to it users, since Telcos take every opportunity to bill clients for connecting to their premises because it’s how they make money. Switching carriers or adding redundant carrier connections can be accomplished quickly via a cross-connect within the same facility.

Co-location’s cost savings comes from sharing computing facilities. This service model enables organizations to lease physical space, power, network infrastructure and Internet access in a third-party data center while exercising control over their equipment and data, savings are realized through the organization’s access to data center resources at a fraction of the cost of building and owning their own facility.

The lesser known value of co-location is comprised of the service levels, expertise and management functionality that it offers that individual businesses are unable to easily reproduce. Moreover, the cost savings in human capital may offer a ROI that actually exceeds the cost of the co-location service itself.

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