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What is Enterprise Level Colocation?

“Enterprise-level Colocation” sounds like a very scary word; however, this article will break it down in a way that will have you excited and talking about it at your next dinner party. Ok, maybe you won’t talk colocation at your dinner party, but definitely at your next IT meeting.


What is enterprise level colocation?

"Enterprise-level Colocation" sounds like a very scary word; however, this article will break it down in a way that will have you excited and talking about it at your next dinner party. Ok, maybe you won't talk colocation at your dinner party, but definitely at your next IT meeting.

Enterprise Level Colocation Explained

When explaining something fairly complex, it's always best to break it down. Let's start with understanding colocation. According to PCmag.com (http://www.pcmag.com), "Colocation often refers to Internet service providers (ISPs) or cloud computing providers that furnish the floor space, electrical power and high-speed links to the Internet for a customer's Web servers." Essentially, enterprise level colocation is taking a company-owned server and equipment and placing it in an "purpose-built" colocation facility – a datacenter – which is a safe environment that provides hosting, connectivity, security, and maintenance.

Enterprise Level Colocation: A Perfect Fit

When we talk about enterprise level colocation, we are generally referring to businesses that need a system-wide datacenter solution that offers speed, dependability, support, efficiency, and productivity. Enterprise level colocation may be a perfect fit for companies that are in need of a datacenter solution that must be used in multisite applications with large volumes of traffic or transactions and require the highest level of connectivity, reliability, and security.

Benefits of Enterprise Level Colocation

1. Enterprise Level Colocation Gives You Trusted Experts

Why is this beneficial to enterprise-level companies? Well, the major benefit is that it eliminates the need for companies to have to be server-hosting experts. You can take your equipment to a trusted datacenter and bypass the investment, time, physical and human resources required to build and maintain a secure facility with the necessary controlled and protected environment for company-owned servers.

2. Enterprise-Level Colocation Providers Enhance Reliability and Speed

In addition, your company gets the added bonus of network reliability and speed. Since colocation datacenters are often located near major Internet connecting points, your company and all of its network users will experience these benefits. This translates into peace of mind, cost efficiencies, less work for you, and enhanced productivity for your IT department and your company.

3. Enterprise-Level Colocation Can Enhance Profit Margins

When a system works faster, more transactions can be processed. As data is quickly becoming one of the highest valued assets to organization, securing it, accessing it and managing it is at the forefront of management's strategy. Flawless planning and execution of a colocation datacenter deployment can translate into a strategic edge versus its competitors but also increased profits. For example, high-frequency trading firms have used enterprise level colocation to place their servers next to those on the stock exchange floors. This has reduced travel time in executing orders, which, according to studies, could result in big gains. Eliminating one millisecond from every trade is estimated to be worth $100 million to a high-speed trading firm over the course of a year! This is just one example of the potential for increased profit margins using the speed of enterprise-level colocation.

4. Enterprise-Level Colocation Can Scale into A Hybrid Solution

While enterprise level colocation may be the best solution for your company, there are many datacenter solutions available, which is why it is best to speak to a qualified datacenter provider to understand which options are the most appropriate for your company's data and network needs.

Many clients are choosing a hybrid solution of colocation and cloud services, or moving completely to the Host.net Smart Cloud platform. The combination, along with Host.net's other managed services, enables the unique ability to provide clients with highly customized solutions that are distinguishable from other providers.


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