Many businesses believe that colocation hosting is only suitable for small to medium-sized businesses (SMBs) that can’t afford their own server rooms and the associated maintenance costs. This perception is understandable, as hosting services, particularly virtual hosting, are so affordable that managing your own infrastructure seems impractical. However, colocation services offer significant benefits for larger companies, even if they have the resources for in-house solutions.
A major colocation center differs significantly from a basic web hosting provider. What sets a colocation data center, often referred to as a “colo” or “carrier hotel,” apart is its scale, telecommunications infrastructure, and advanced security and emergency protocols. The term “colocation” stems from multiple carriers and businesses sharing space and resources within the same facility.
Initially, Carrier Hotels primarily housed telecommunications carriers who established Points Of Presence (POPs) within the building and interconnected with other carriers in designated “meet me” rooms. Today, large colos cater to businesses of all sizes seeking reliable carrier connectivity, 24/7 security personnel, and backup power.
In a typical colocation center, you can rent space ranging from partial to full relay rack increments, cabinets, dedicated cages, or even private rooms tailored to your needs and budget. You get peace of mind knowing your servers and network devices are protected around the clock by security personnel who manage building access and use security cameras for constant surveillance. Cabinets and cages often have individual key locks for added security.
Reliable power supply is another crucial feature of colocation centers. Most facilities have battery backups to protect electronic equipment from power fluctuations. In case of an outage, diesel generators automatically activate, ensuring continuous operation until the main power source is restored. Some colos even source power from two independent transmission lines for enhanced reliability.
Just as crucial as power management is environmental control. Larger facilities meticulously regulate temperature and humidity levels using redundant Heating, Ventilation, and Air Conditioning (HVAC) systems.
While you could replicate this environment in your own data center, many large companies utilize colos to establish redundant infrastructure for disaster recovery. In the event of a fire, flood, or severe storm, your business operations could be disrupted for days or even weeks. With a secondary offsite facility, you can transition to your backup systems seamlessly, minimizing downtime and customer impact.
Another significant advantage of colocation centers is their ability to provide readily available and cost-effective bandwidth. As your business expands and bandwidth requirements surpass the capacity of T1 or bonded T1 lines, securing higher bandwidth options can be expensive and challenging. Major cities often have robust infrastructure, but smaller towns may lack fiber optic networks. Even if fiber optic cable is accessible, extending it to your location can be prohibitively expensive.
This issue is virtually nonexistent within a colocation facility. With one or more major carriers having a presence in the building, getting a direct connection to your rack or cage is straightforward. Colos often offer copper and fiber optic cabling services, ensuring you can access the bandwidth you need, from T1 and DS3 to Ethernet, Fast Ethernet, GigE, 10GigE, and OC3 to OC192 protected SONET rings. “Burstable” bandwidth options are also available, automatically adjusting to temporary spikes in usage. Physical proximity to the carrier translates to lower latency, which is critical for time-sensitive applications.
Furthermore, being situated within a colocation center with access to multiple carriers offers a competitive edge. The abundant bandwidth and minimal construction costs result in favorable pricing for your connectivity needs. The cost savings on bandwidth alone can sometimes justify moving your entire operation to a colo facility.
Determining if colocation services are right for your company requires careful consideration. Our expert team is ready to analyze your requirements and provide competitive pricing for various options. Simply share your needs with us at T1Rex.com.

