According to Dark Reading, the average data breach costs a business around $4.5 million. Even a single incident can have catastrophic consequences, such as irreparable damage to your company’s reputation.
Working with a colocation service can provide additional security, but not everyone understands what they should budget for. We’ve written a detailed guide on the key information you should keep in mind about colocation pricing during your search. Let’s take a closer look at what to consider so you can make the process as streamlined as possible.
1. Location
The data center’s location is located plays a huge role in determining colocation pricing. Facilities in major cities often have higher data center costs due to real estate prices and demand.
However, those located in remote areas may offer lower prices, but they can come with trade-offs like increased latency or fewer connectivity options. It’s crucial to weigh the benefits of being closer to major hubs versus potential cost savings in rural areas. A strategic choice of location can balance affordability with performance, especially for businesses looking to manage server colocation expenses efficiently.
2. Data Center Tier
The tier of the data center also impacts pricing significantly. Higher-tier facilities offer greater redundancy and uptime, which can come with a premium. For businesses with critical data, opting for a Tier III or Tier IV data center may be worth the additional cost.
On the other hand, Tier I and II data centers might be suitable for companies that can tolerate occasional downtime. Understanding the tier structure helps in selecting a facility that matches both operational needs and budget constraints, avoiding unnecessary server colocation expenses.
3. Power Requirements
Power consumption is a significant factor in colocation pricing, as facilities charge based on the energy used by your equipment. Businesses with high-performance servers or extensive hardware setups will see higher costs due to increased power needs. Efficient power management (such as using energy-efficient hardware) can help control these expenses.
It’s important to assess both the current and future power demands of your infrastructure to avoid unexpected charges. Planning for energy needs upfront can minimize server colocation expenses over time.
4. Connectivity Options
The type and amount of connectivity required also influence pricing. Data centers offering multiple carrier options often charge more for access to premium bandwidth. However, having diverse and reliable connections is essential for businesses that rely heavily on data transfer or have global customers.
Investing in higher bandwidth now can prevent bottlenecks and improve overall performance. Leveraging these colocation pricing tips can help reduce costs without sacrificing speed.
5. Security Features
Security is often a major component of colocation pricing. Facilities with advanced security measures, like biometric access control and 24/7 monitoring, tend to charge higher fees.
However, cutting corners on security could lead to much bigger expenses down the road, especially if your data is compromised. It’s essential to evaluate what level of security is necessary for your business and balance it with your budget. Knowing which security features are worth investing in can keep data center pricing manageable while protecting valuable assets.
6. Scalability
Businesses that anticipate growth need to consider how easily they can scale their infrastructure. Some data centers offer flexible contracts that allow for rapid expansion, while others may require long-term commitments for additional space or resources. Planning for scalability ensures that you won’t face unexpected colocation cost factors as your company grows.
It’s also wise to evaluate whether your current data center can meet future needs without significant upgrades or relocations. Choosing a facility with built-in scalability options can save money in the long run by minimizing server colocation expenses.
7. Support Services
Support services, such as remote hands or managed services, often come at an additional cost in colocation pricing. These services can be invaluable for companies that lack an in-house IT team or need quick responses to emergencies.
However, it’s important to carefully review what is included in the base price versus what requires extra fees. Having a clear understanding of the available support can help avoid unexpected data center pricing increases. Investing in quality support services now can reduce future operational headaches and ensure smooth colocation management.
Finding a Service Provider
When searching for someone to work with, it’s important to consider more than just availability or price. Look for a service provider who has a solid reputation, backed by positive reviews from clients (while avoiding fake ones during your search).
Pay attention to how long they have been in the industry, as experience often indicates reliability. You also want to ask for references or examples of previous work to ensure their expertise matches your needs. Communication is key, and you’ll want a provider who is easy to reach and willing to answer questions.
Choosing a reputable company helps avoid potential misunderstandings down the line. When comparing options, research each provider’s qualifications. Do they specialize in what you need, or do they offer a wide range of services?
Specialized providers may offer more tailored solutions. It’s also worth asking about their processes and timelines so you can set realistic expectations.
Don’t hesitate to trust your instincts, though. If something feels off during your initial conversations, it might be a sign to look elsewhere.
Make sure you feel comfortable working with the provider before making a final decision. Choose wisely to ensure a smoother project and a positive outcome. Once you’ve selected a service provider, maintain clear communication throughout the process to achieve the best results.
Don’t Neglect Colocation Pricing
The tips in this guide will help you identify colocation pricing and find the ideal service provider for your needs. From here, you’ll have no issue getting the desired outcome and avoiding common issues you may have otherwise encountered.
Great Lakes Colocation offers 100% uptime guaranteed with N+1 redundancy, ensuring continuous availability for your critical systems. Our secure colocation facility provides robust infrastructure and hands-on support, helping businesses protect and manage data effectively.
Since 2005, we’ve had a proven track record of reliability and growth in IT infrastructure services. You’ll learn more about how we can help when you get in touch with us today.