Colocation: Why SLA Agreements Are Smart For Business

Colocation and service level agreements. What are they and why do you need them? In this article, we’ll review what colocation is, how its services are useful to businesses, and then why service level agreements are so important.

Colocation, what is it?

Colocation providers refer to data center companies, cloud computing providers, or Internet service providers who provide businesses with data solutions that are usually hosted in colocation facilities. They eliminate the need for businesses to set up secure data storage facilities that require a sizable running cost.
Additionally, colocation offers businesses with the option to keep their data secure, in a monitored off-site environment for a lower cost. If a company employs external colocation services, then they won’t have to set up a data storage facility which would require electricity, internet connection, air conditioners to keep the equipment cool, space to keep the equipment, and resources (a team) to monitor, save and protect the data. Also, colocation data centers sometimes provide cloud computing services and access to multiple Tier 1 Internet backbones, as they are located near Internet connecting points.

What’s an SLA Agreement?

Traditionally, Colocation providers draw up a service level agreement (SLA) with their intended client. The document should highlight the type of services that will be provided to the customer. This includes:

  • The terms of the agreement
  • Information about percentage uptime
  • Data monitoring and reporting guidelines
  • Restraints and escape clauses so no party can take unfair advantage

This agreement is drawn up as instructions for both the provider and the client.

What Should an SLA Agreement Include?

Before securing or signing on an SLA, a business should inquire about what exactly the client entails, and what services they will accurately be receiving. The main points that are covered in an SLA, which the clients should know about before agreeing to, are:

  • Volume and quality of work
  • Guarantees
  • Speed
  • Efficiency
  • What the facility will be responsible for
  • Warranties
  • Response time

The document establishes and legalizes the services supplied and received between both parties.

How Does an SLA Agreement Protect You?

The primary requirement for a business seeking the services of a colocation provider is that they keep the companies data safe and accessible. An SLA exhibits how the provider aims to keep your data free of breaches. Be sure to read the SLA carefully before signing it. This can help avoid disputes over services.
To learn more about colocation services, check out our certifications and feature HERE!


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