Colocation: Cost Breakdown

Getting to Know Colocation

In the digital age, sharing and storing information is starting to become a challenge for companies. Most companies want to have access to reliable and cost-effective hosting. Colocation also termed as Colo, is a method of keeping servers and networking equipment in a data center, operated by a third party.

Cost of Colocation Services

The colocation fees depend on the hosting that your business requires. Each data center has a unique pricing policy. Whatever decision you take, consider that hiring a colocation center is usually cheaper than managing your own data center. Businesses can choose from Private, Public or Hybrid Colocation services. The colocation cost will vary according to the services provided. Below is an in-depth breakdown of the positive and negatives of each variation.

When do you need a Private Colocation?

Private colocation can provide businesses with an opportunity to have better economies of scale by high-density equipment. This kind of service will provide you with a dedicated rack space. Your business will usually get all the cooling equipment, very high bandwidth, CCTV monitoring for increased security, backup options and uninterruptible power supply in case of a power failure. The colocation fees will depend on the services provided by the private data center. Private colocation is one of the best services, but the costs are usually higher as compared to public and hybrid colocation. 

Private Cloud Summary

  • Positives: Highly secure, tailored to your compliance needs, more control, and more flexibility.
  • Negatives: Can be more expensive to manage.
  • Cost: $500 – $3000 per month (including hidden fees)

How about a Virtual Colocation and How Much Does it Cost?

When your business aims to reduce your capital expenditures while searching for a reliable colocation service provider with access to the in-house technical ability to organize your virtual resources. If these points cover your needs, then you should select a Virtual colocation service that allows you to deploy your virtual servers. The data center can allocate different resources for you using a secure virtual private network.

Hybrid Cloud Summary

  • Positives: Highly secure, scalable, and cost-effective.
  • Negatives: Can be difficult to manage.
  • Cost: $500-$1500 per month (including hidden fees)

Public Colocation Service and its Cost

Public Colocation is a recommended method for companies to resolve their storage problems. Instead of keeping large, expensive servers in-house that require a complete staff for operations. Companies are now focusing to co-locate their privately owned servers to data centers by renting out their space at a colocation site. In this type of service, the clients do not need to manage their data and equipment. The management of the data center is responsible for maintenance and management of data. The colocation Colorado fees depend on the subscription and service type you choose.

Public Cloud Summary

  • Positives: Public cloud deployments are inexpensive, scalable, and quick to deploy.
  • Negatives: Not as secure, at times not compliant, can be difficult to manage.
  • Cost: $500-$1000 per month (including hidden fees)

Colocation Wrap Up

Overall some organizations don’t want the hassle, others simply don’t have the bandwidth to provide a proper environment for their infrastructure or staff to support it. Breaking down all of the elements in play with a proper solution for your business, the price ranges listed above are what you can expect to include in your IT expenses.

To learn more about Colocation Services see our Data Center Direct Connect services.