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What Are the Business Benefits of Colocation?

Today, businesses have more options than ever when it comes to managing their business critical information. As technology continues to evolve, the question of how to best manage larger and larger amounts of data in a corporate setting has become increasingly common, and for many, colocation has emerged as a possible solution.

Business continuity is essential for success, and in managing all of the additional working parts of a company, outsourcing may be a practical option. Here are some of the business benefits of colocation.


Transitioning from managing data in-house to outsourcing within a data center can prove to be very cost-effective for businesses. By taking on the responsibility of data management internally, businesses are tasked with managing all major variables and expenses independently, which can be both time-consuming and distracting in maintaining everyday business operations.

Colocation service plans are a comprehensive package, providing built-in benefits such as support, security, redundancy, and connectivity at either a bundled or reduced cost compared to on-site hosting. Additionally, by outsourcing, businesses can be assured that their information will be stored in a resilient and reliable environment, so unpredictable variables such as hiring additional security staff, costly equipment maintenance, office migration, or power outages will be eliminated. By utilizing colocation for IT outsourcing needs, businesses regain the ability to focus on core initiatives and resources more efficiently.

Support & Redundancy

In addition to being a cost-effective alternative, colocation provides businesses with a secure, redundant environment in which to house their information. As stated above, there are endless ways in which business-critical information can be compromised. Office migration, power outages, security threats, mismanaged equipment, and natural disasters only scratch the surface – and as such, ensuring that data is stored in a protected environment with proactive support is essential.

Colocation providers will do everything in their power to ensure that their customers’ business operations are maintained. Most data center facilities provide 24/7 onsite support availability, which is especially convenient for situations that require immediate attention, When an issue arises at an unexpected moment, customers need someone to help them out as soon as possible. 24/7 support offers a peace of mind, knowing that the data center provider has their back.

Additionally, facilities will have multiple generators and mechanical systems in place to back up data in order to guarantee that services are not interrupted no matter the circumstance. The support staff continuously tests and monitors these systems, investing the time and energy necessary to ensure 100% uptime for business operations. Supporting customer need is the number one priority of a data center facility. Overseeing all of these measures internally could prove to be time-consuming for businesses, and presents the risk of stalling business operations if not properly executed.

Learn more about why support matters when choosing a data center.


Perhaps the most valuable benefit of colocation is the robust, state-of-the-art IT infrastructure in place to store customer information. A colocation solution provides businesses with environmental benefits that may not otherwise be accessible (or affordable) if managing in-house.

Data center providers differ from many Enterprises or SMBs in that they have the resources in place to build, deploy, and maintain the infrastructure that is needed to properly host and maintain large amounts of data. Not only do facilities provide the best equipment for storing information, they also deploy the best support systems for providing power, bandwidth, cooling, and redundancy within a single plan. Trying to implement these systems in-house could quickly exceed a company’s internal IT budget, nor do many businesses have the time or money to devote to implementing and maintaining such complex hardware and systems. By utilizing colocation, businesses are able to house their servers within the advanced environment allocated by the data center facility, affording them the benefit of optimized infrastructure for their business needs.

Scalability & Connectivity

Without a secure, reliable connection to its customers, businesses are unable to deliver on their products and services. As such, connectivity within the data center is essential. Data centers provide access to high-speed, high-quality bandwidth. This product ensures that sites are running at top speed, allowing for faster downloads and the ability to handle more traffic. If issues do arise, the support team is available 24/7 in order to troubleshoot and restore optimal performance quickly and efficiently.

As a business brings in more traffic and begins to expand, the colocation facility has the flexibility to expand as well. Much of the value of colocation rests within the customization of solutions to fit industry need. Not all businesses require all of the features and functionalities a data center may offer. Instead of having to add or subtract equipment in order to maintain operations in-house, businesses can simply contact their colocation service provider in order to scale their solution as needed.

Marketability & Peace of Mind

There are various business benefits of colocation. However, one that many businesses may not take into account is that protecting their business-critical information serves as a great selling point. As businesses are trusted to manage their customers’ sensitive information, being transparent about the fact that they are utilizing a colocation facility for their business needs promotes the idea that data management and security is a priority, which has the potential to build a positive reputation and generate sales.

Ready to take the first step? Check out our Ultimate Buyer’s Guide to start! At ColoHouse, our infrastructure is managed more efficiently so it adjusts to the needs of your business . Need help with a plan for your business? Please contact us at +1 305-731-2225 or use our contact form. Our team is happy to discuss your situation and requirements to help you get the best solution for your business.

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