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Datacenter Colocation vs. Building Your Own 

February 4, 2016
Colocation , Datacenter
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All you need to know about Datacenter Colocation

Datacenter Colocation, growing organizations often find themselves weighing the pros and cons of building their own data center versus buying colocation hosting services.

Various market research firms have found that the total price of constructing a data center onsite can cost up to $3,000 per square foot.

Businesses must make a critical decision: Should they bite the bullet and absorb the costs of an onsite data center construction or should they look at colocating their servers into a nearby data center?

Datacenter Colocation, if you’re being tasked with these critical decisions, consider these distinct advantages that colocation provides over onsite data centers.

Colo Gives Your Organization More Long Term Value

Let’s face it, most IT departments aren’t turning a profit for their companies; Datacenter Colocation, IT departments are there to save the company money on critical IT infrastructures.

Although having IT staff is absolutely necessary for most businesses, the size of your IT staff will likely be proportional the amount of infrastructure that your business has built onsite.

Theoretically, if your IT staff has less responsibilities, there should be a smaller chance of an outage occurring on your network.

When you put your servers in a nearby colocation data center, your IT staff won’t have to worry about power outages, network outages or outages that are out of the realm of your IT crew’s control.

Maintain a Nimble, Talented IT Staff

With this in mind, consider the fact that onsite data centers require constant maintenance, monitoring and staffing.

Combined with the fact that private data center outages occur more frequently than they do in a colocation data center, it’s easy to see why colo is becoming a more popular choice for businesses all around the world.

Not every organization has the budget to bring on additional IT staff that can be available to perform the core tasks associated with data center administration.

Datacenter Colocation – With this in mind, doesn’t it make more sense to hire a small, talented IT staff that can perform systems administration tasks remotely?

Your Organization Can Focus on Sales, Not Deploying IT Infrastructure

Building a datacenter Colocation is less cost effective than colocation services. In fact, over a 10 year period, colocation is actually 42.3 percent less expensive based on a standard build-out for a medium sized company! Building your own facility will require wiring, a sophisticated cooling system, raised floor space and a physical security system that meets or exceeds industry standards.

If your business is growing rapidly, consider leasing colocated data center space for your critical IT systems, Datacenter Colocation.

By deploying IT infrastructure inside of a colocated data center, your business will can focus on what it does best: making sales and converting leads.

The best part of implementing a datacenter colocation strategy is that your business can buy as much as data center space as it needs, and your IT staff will never have to worry about addressing the root causes of network outages, power outages or physical security breaches ever again.

What is colocation?

Colocation is a service where businesses rent space in a third-party datacenter colocation to house their servers and hardware. The Colocossing data center provides power, cooling, physical security, and network connectivity, while clients retain control over their equipment and data.

What is the difference between colocation and hosting?

  • Colocation: You own and manage your hardware, but rent space and infrastructure in a third-party data center.
  • Hosting: The service provider owns and manages the hardware and infrastructure, and you rent resources like servers or storage.

How much does colocation data center cost?

Colocation costs vary based on factors such as location, rack space, power usage, bandwidth, and additional services. On average, prices range from $100 to $1,000+ per month per server, depending on the level of service and customization.

Is colocation a managed service?

Colocation itself is not inherently a managed service—it primarily provides space, power, cooling, and connectivity. However, many colocation providers, like ColoCrossing, offer optional managed services such as hardware maintenance, monitoring, and technical support.

Why do companies use colocation services?

Companies use colocation services for:

  • Cost savings: Avoid building and maintaining their own data centers.
  • Scalability: Easily expand resources as needed.
  • Reliability: Access redundant power, cooling, and connectivity.
  • Security: Benefit from advanced physical and digital security measures.
  • Focus: Free up internal resources to focus on core business activities.

ColoCrossing excels in providing enterprise Colocation Services, Dedicated Servers, VPS, and a variety of Managed Solutions, operating from 8 data center locations nationwide. We cater to the diverse needs of businesses of any size, offering tailored solutions for your unique requirements. With our unwavering commitment to reliability, security, and performance, we ensure a seamless hosting experience.

For Inquiries or to receive a personalized quote, please reach out to us through our contact form here or email us at sales@colocrossing.com.

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Jon Biloh
Jon Biloh

As president I'm responsible for developing and executing our global strategy, generating new business opportunities, enhancing the customer experience and ensuring that ColoCrossing provides world class service!