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Business Growth with Colocation

5 Ways Colocation Can Promote Business Growth

Every forward-thinking organization understands the power of transformation in today’s dynamic business landscape. The journey toward optimization and success often begins by partnering with a reliable colocation provider. This partnership unlocks a myriad of benefits, from boosting business growth to enhancing cost efficiencies. Such advantages contribute to colocation’s rapid growth trajectory. According to a study by Allied Market Research, the colocation market is expected to exceed $200 billion by 2030, representing a projected compound annual growth rate of 15.7% globally from 2021 to 2030.

In this article, we’ll explore five key benefits of colocation.

1: Enhanced Reliability and Uptime

Downtime can be detrimental to any business, leading to lost revenue, decreased productivity and damage to brand reputation. Colocation, which refers to housing servers and IT infrastructure in a third-party data center, is provided by purpose-built facilities that ensure high levels of reliability and uptime. Such data centers are equipped with redundant power supplies, cooling systems and network connections, reducing the risk of service disruptions. Additionally, quality colocation providers have a dedicated team of experts to monitor and maintain the infrastructure 24/7, offering rapid response times in case of any technical issues.

By leveraging colocation services, businesses can minimize downtime and ensure their critical applications and services are consistently available. This improved reliability fosters customer trust and loyalty for businesses, which, in turn, attracts new clients, keeps current clients satisfied and drives business growth.

2: Cost Efficiencies

Several factors contribute to an outsourced data center’s cost efficiencies for customers. Commodities like power and network consumption are major factors in this equation. Escalating power costs in specific regions are no longer a primary concern, since energy costs are spread over multiple colocation tenants In addition, clients tap into greater bandwidth at a lower expense, courtesy of colocation’s pooled resources. Top-of-the-line colocation providers also invest in infrastructure advancements that enhance energy efficiency, which helps to stabilize costs for everyone.

3: Predictable Spending

In the typical colocation model, a business houses its privately owned IT infrastructure in a data center facility and pays the provider for space, energy and other operational costs. In some cases, technical management of systems is also included.

Transitioning from a capital-intensive approach to an OpEx model has redefined predictability for numerous businesses, meaning they outsource the ownership of the IT equipment itself to the colocation provider.

In an OpEx model, customers pay a monthly subscription fee to use the provider’s hardware rather than purchasing and maintaining their own IT infrastructure. Typically, in such arrangements, the colocation provider also handles system maintenance and system expansion – thus freeing the business from the prospect of spending millions to maintain, upgrade, or purchase new hardware in the future.

A major benefit of using this approach is flexible spending and scalability. With colocation facilities enabling clients to expand or reduce resources based on evolving needs, businesses can be more agile and responsive, creating an environment conducive to rapid growth and expansion

4: Enhanced Security

Colocation, also known as multi-tenant data centers, in general, offer a higher level of physical and cyber security than individual businesses. Quality providers ensure that several layers of infrastructure security are in place to maintain operations in the event of a power outage. Redundancy is built across all platforms, solutions, and employee responsibilities. At the same time, physical security measures, such as limited building entrance points, key-card access to private areas, 24/7 security staff, and multiple layers of locked doors, ensure that systems are safe and only accessible to qualified personnel. Additionally, carefully monitored cooling systems make sure that proper temperatures are maintained for sensitive computer equipment.

5: Focus on Core Competencies

Colocation liberates businesses from the burden of managing and maintaining data centers, allowing them to concentrate on their core competencies. By offloading IT infrastructure management to trusted colocation providers, companies can divert their internal resources and expertise towards innovation, product development and customer engagement.

This streamlined approach enhances operational efficiency, improves time-to-market for new products or services, and fosters a culture of innovation within the organization. Ultimately, this increased focus on core competencies can drive enhanced business growth and market competitiveness.

LightEdge Can Help

As a top-tier colocation services provider, LightEdge provides a high level of availability and reliability through secure, certified data centers and dedicated staff on-site. Its customized and scalable services give you control, whether you need a colocation rack, cage, or custom suite now or in the future. Get started today with a free quote from one of our colocation specialists. Contact us here.


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