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Data center colocation services vector illustration of server rack equipment

Choosing colocation services for your business means that you’re leasing data center space, power, and cooling from a provider that owns and manages a data center facility for you. The popularity of colocation has grown alongside Cloud services, offering major benefits when compared with on-premises solutions.

In this blog, we focus on colocation’s financial benefits, covering five key ways it boosts your bottom line.

5 Financial Benefits of Colocation Services

1. Cut High Capital Expenditure

Building and implementing your own data center facility comes with a massive price tag up front, including having to create the proper environment and redundancies to store your servers. Colocation allows you to reduce capital expenditure because you only have to invest in hardware and software, not the storage environment itself.

This means you can enjoy a spacious, high-quality colocation data center at a price you can afford not only now, but also as your business grows and changes in the future. Colocation’s capital expenditure savings are ideal for businesses that don’t want the permanent investment of an on-site data center or can’t currently afford to build one that will meet their needs well.

2. Lower Operating Costs

On top of an already costly initial investment in having your own data center on-premises, you’ll also pay enormous amounts to keep your data center environment running smoothly and up-to-date. No matter how much space and energy you actually need at a given time, you may often find yourself paying more than necessary to cover management and maintenance.

With colocation services, you can reduce unnecessary operating costs because you only pay for what you need when you need it. This efficiency means you can expect a consistent, predictable cost without significant miscellaneous expenses.

Additionally, your provider’s team of experts are handling the huge colocation data center environment for you, meaning you don’t need to invest as much in personnel as you would if you owned the data center. This includes maintaining the space, power, bandwidth, IP address, and cooling systems necessary. Colocation hosting gives you greater bandwidth with a lower cost so you can enjoy the features of a large IT shop without the massive price tag.

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3. Reduce Risk

Did you know that colocation is more secure than hosting your own server? Colocation offers a higher level of security and maximizes your uptime thanks to the following features when you choose a provider like LightBound:

  • Powerful generators and backup power to keep your servers safe during an outage
  • Servers stored in ideal temperatures with redundant power, cooling, and fire suppression
  • 24/7/365 monitoring and assistance
  • Advanced physical security including biometric access, cameras, individual cage locks, and substantial access logs
  • Compliance with ever-evolving industry regulations

When your infrastructure is protected and monitored by a trusted data center services provider’s environment, you can rest easy knowing your business operations will run smoothly and get quickly back on track when something goes wrong.  

By avoiding the costs of downtime and remediation, your bottom line will thank you. Plus, you don’t have to pay to keep up with expensive security technology, monitoring, and certifications.

4. Improve Customer Loyalty

Housing your infrastructure with the right colocation provider means your customers can trust that you are keeping their data safe. Reduced downtime and smoother business operations will mean less frustration for your customers and increased brand loyalty. When your business runs well, it fosters happy customers that have faith in your business.

5. Scale Easily

When you store your server equipment in your own server racks, there’s no easy or cost-effective way to move, grow, or shrink the space you store your infrastructure. With colocation services, you own your server hardware and can upgrade anytime rather than being stuck with the initial facility plan in your own data center. Rather than having to completely rebuild your own data center, your provider will provide you space to easily scale your infrastructure up or down on-demand.

Plus, if your office building moves locations, you won’t have to worry about transporting your infrastructure with it—it can stay put at your colocation site. This flexibility and scalability can be a wise investment in your bottom line, especially if your company is fast-changing, a startup, or requires a fast time to market.

Landscape view of very large data center data storage array for colocation services

Choosing the Right Colocation Provider

As much as 4-5 times less expensive than insourcing, colocation offers many benefits to your bottom line. If you think colocation is right for your business, then it’s time to get serious about choosing the right colocation provider.

This is a crucial step to ensure colocation success because no two providers are the same when it comes to the value of their offerings and service delivery. Look for a provider like LightBound who will be a partner to your business, providing continued personal attention,  24/7/365 support, top-notch security, and custom solutions.

Want to learn more about colocation services? We’d love to hear from you! Contact LightBound today and our experts will help answer all your questions and share how colocation hosting can benefit your business.

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Concept for new trends showing a hand moving forward a yellow arrow on a wood cube leading the way for a set of cubes with blue arrows following behind on a wooden table

Businesses continue to shift away from costly and time-consuming, on-premises solutions in favor of colocation services. By choosing colocation, a business is able to rent the physical space, power, redundancies, and cooling needed to house their own hardware from a provider, all while continuing ownership and management of their equipment.

While colocation isn’t considered “Cloud”, it’s a solution that still offers huge advantages to the right business in terms of time, money, and physical space savings. Whether you’re currently colocating or looking to make the switch, we’ve gathered four key colocation trends for you to consider when creating your own IT strategy.

1. Network Agility Will Be Pushed to Keep Up

Growth demands on networks are high and this pressure will only continue thanks to “the advent of 5G, increasing cloud maturity, and the explosion in numbers of IoT devices,” explains Hosting Journalist. While network agility is more important than ever, it’s equally as important to choose a colocation hosting provider with a network that can keep up with the pace of demand.

Illustration of running people with speed increasing from pixels as a concept for trends, changes, and digital transformation

2. Colocation Will Be Core to Hybrid Cloud

Hybrid Cloud solutions are on the rise, explains Data Center Knowledge, which isn’t surprising considering that Hybrid Cloud solutions offer increased flexibility and efficiency for businesses by integrating the use of private cloud and public cloud solutions. Colocation services will rise in use alongside Hybrid Cloud as businesses seek a cost-effective solution to house their private cloud solutions.

3. Evaluating Providers Will Go Beyond Cost Calculations

It’s already widely recognized that colocation services offer huge cost savings. Now, Forbes explains that businesses will look beyond that established fact when choosing a provider to evaluate how a provider will help them improve efficiency and capacity. It will become increasingly important to ask, “Which provider will give me an edge as a business?”, and “Which provider will work personally with me to create a custom strategy for success?”

Server control panel hosting software vector illustration for colocation services

4. Advanced Security Will Be Non-Negotiable

With today’s ever-increasing cybersecurity threats, security and compliance are on everyone’s minds. Choosing the right colocation services provider will be essential to ensuring you have top-notch security that can stand up to the threats. Businesses will look for a provider’s ability to offer advanced security features including virtual security, redundancy, compliance with industry standards, and physical security measures such as registration and biometric access.

Interested in colocation services?

Do you want a colocation hosting provider you can trust, that will grow with you as a true partner to your business? LightBound’s colocation services can help make your life simpler and less stressful, offering Choice Network, custom Hybrid Cloud solutions, compliance and security you can count on, and a true interest in the success of your business.

We’ll sit down with you one-on-one to ensure a successful enterprise strategy and you can rest assured knowing we’ll be there for you whenever you call. Contact LightBound today to get your questions answered and learn from our experts what a colocation site can offer your business.

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Hand with marker writing the word "Facts" and crossing out the word "Myths"

Before Googling “data center services near me,” are you sure you have the information you need to evaluate potential providers? Do you know for certain that everything you’ve heard about data center hosting is true? Chances are, you’ve heard one of many myths circulating that need to be set straight.

When shopping for data center services, it’s important to separate fact from fiction so you don’t run into any surprises down the road that could leave you frustrated or disappointed. This blog reveals the truth about five major myths to give you the information you need to know before signing the dotted line on data center services.

Close-up of network cables and servers for data center services

5 Data Center Services Myths

1. An impressive-looking facility means you can expect equally impressive service delivery.

False.

The saying “don’t judge a book by its cover” absolutely applies when it comes to data centers. There are plenty of data centers that look amazing when touring the facility, but it’s also true that the devil is in the details. The distracting flashiness of certain facilities can pull you away from all of the details you need to truly consider when it comes to data center colocation, of which cost would probably not even make the top ten.

Before becoming carried away by appearances, arm yourself with the knowledge that some colocation data centers do quite a bit of window dressing to make things look better than they are. Of course, the converse is also true in that while some colocation sites aren’t much to look at, their uptime performance is top-notch. Why? Because while they didn’t focus on aesthetics, they were designed with functionality as a priority from the start and with all of the appropriate redundancies.

2. Every provider’s data center services are the same.

False.

While providers might seem similar in cost and services at first glance, it is the differences you don’t see right away that end up counting the most. Most of what data centers have and do you can’t see with your eyes, including their access to fiber, which other data centers they have on the network for secondary sites, whether they provide adequate cooling for your footprint, their expansion possibilities, and more.

You’ll want to consider key questions up front such as, “are their physical security access requirements too loose? Too tight? Or just right?” After the honeymoon is over with your new provider and you’ve settled into your new home, that’s when you’ll discover that your main point of contact is really the support and engineering staff. Every provider has a different company culture, meaning every provider will offer you a different customer experience that has the ability to make or break your services.

3. Data center services are a commodity nowadays, so pretty much anyone can handle them.

False.

Data center services are so much more than a simple commodity. As you conduct your due diligence, you’ll discover that some facilities don’t take care to apply data center hosting the correct way, doing your business a huge disservice in the process. Not every provider works with the level of care necessary when it comes to the mission-critical nature of colocation hosting services.

For example, did you know that some providers will cut maintenance costs by stalling upgrades for infrastructure elements beyond vendor recommendations? You’ll want to be sure you’ve seen your potential provider’s upgrade plans, being aware of what’s already been upgraded and what is planned for the coming year, plus how expensive and difficult those upgrades will be to achieve.

After all, most of these upgrades involve risks that may become your risks even though your provider is the one responsible for them.

4. Services in the Cloud are not as secure.

False.

Many assume that the Cloud is less secure, but this is an incorrect assumption. In fact, data center hosting providers should be able to provide far superior security compared to a typical on-premise data center. The right provider will offer protection in the following ways:

  • Advanced physical security such as registration, I.D. badges, and biometric access
  • A team of trusted, expert staff members managing and maintaining the data center, ensuring peak security and performance
  • A 24/7/365 Network Operations Center to ensure high visibility and protect your data
  • Disaster Recovery services
  • Meeting strict industry certifications and standards
  • Your business continuity and disaster recovery (BC/DR) will automatically be better because your data center isn’t in the same location as your business

Rest assured, your data will be safer with a trusted provider than you would likely be able to achieve both successfully and affordably on your own.

5. It’s a data center, so my main focus needs to be centered on evaluating the tech details.

Maybe.

How many times have you signed an agreement and found out later that it was really the people you were buying that mattered? Culture and people are what stand the test of time, every time. Carefully examine the team of people that will be there for you when the chips are down. Are you instilled with trust and confidence in their care and expertise?

What you learn about a provider’s staff will tell you a lot about the quality of that provider. As much as any provider plans, designs, and implements their systems to avoid failure, all of the systems in a data center are electro-mechanical. At some point, they will fail. It all comes down to that staff getting systems back online quickly and the transparency of communication—something you can’t put a price on.

Two business people standing and talking in data center server room with laptop

Are You Shopping for Data Center Services?

The vast ocean of information out there about data center services can be confusing, but through knowing the truth about these five myths, you can move forward in confidence, and find the right provider for your business.

Choosing the right provider will be key to your success because they’ll make a huge difference in how your services are delivered. Be sure to choose a provider like LightBound that you can trust, who is willing to sit down with you in person, answer all of your questions with clarity, and customize your solution.

With LightBound, our data centers are among the safest and most secure in the nation. Our always-on, always-available service will have your back, and our expert team is ready to ensure the success of your services.

Contact us today to learn more about LightBound’s data center services and how we can be a true partner to your business.

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