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How Colocation Supports Cost Savings

BY VOICES OF THE INDUSTRY – SEPTEMBER 5, 2016 LEAVE A COMMENT

How Colocation Supports Price Savings

In this week’s Voices of the Market, Josh Moody, Senior Vice President of Marketing in FORTRUST and Sales, discusses colocation supports price savings.

As businesses invest the Marketplace, in colocation services Continues to grow. According to the latest findings in 451 Research, the global colocation marketplace is on track to exceed $33 billion within the next couple of decades.

While colocation services represent on an investment The part of enterprises may support an array of cost savings that extend to company section.

“Cost reduction often begins with IT,” Accenture Strategy Pointed out. “By using new technologies, CIOs are better positioned to launch the next wave of price reduction.”

colocation server hosting are uniquely positioned to encourage Businesses in this manner. Let’s Look at all the ways businesses can save costs by leveraging the expert services of a colocation provider:

Rather than buying, leasing

For businesses that find themselves Computing support not determined by cloud, choices often boil down Leasing distance in a colocation facility, or constructing a data center for the only use of the company. The purchase price of establishing a data center is often cost prohibitive while using a dedicated computing facility may seem like an attractive benefit. In accordance with OnlineTech, expenses involved here can comprise:

colocation server hosting

  1. Upfront investments:Just as much as 25 percent of the Price of a New data centre comes from designing spending connected with planning and commissioning.
  2. Taxation and permits:Before construction can even begin, Businesses must ensure that they have the right permissions in place and local taxes are paid. These costs can accumulate, translating to up to $70 per every square foot the facility will span that is planned.
  3. Building costs:Forrester researchers discovered that today’s Companies must plan on investing $200 for every foot so as to create the shell of this facility and implement the security.
  4. Computing infrastructure:Enterprises must also factor in The expense of systems, the equipment and configurations required to support processes. Infrastructure costs can range from $7,000 to $20,000 per kilowatt of IT load, depending on the organization’s needs.

And that just scratches at the surface of the investments Required for new data center construction. Spending on electricity utilities can account for as much as 80 percent of costs that are operational, and maintenance can lead to 5% of initial costs.

Many companies simply don’t possess the necessary financial A flexibe strategy to support a data center’s building. In this way, it’s more budget friendly and cost effective to work with a colocation provider that has the facility, utilities, systems and computing equipment in place to encourage business requirements.

Built-in scalability

In addition to eliminating the requirement for the construction of A brand data center, colocation may save businesses money in regards to scalable resources. As a result of this flexibility of colocation services, businesses can always scale their environment down or up to match their needs. This manner, companies never pay for more resources than they want, and resources can be added in the cheapest way possible as requirements grow.

Reducing on-site complexity

Other cost savings result from reducing the number of Systems at branch offices and the business’s main headquarters. With colocation support set up, the internal IT staff of the company can rest easy knowing that their computing environment is in the hands of specialists. At the exact same time, colocation enables IT admins to have visibility in their environment and activity. This implies that while resources and gear are saved off-site, these assets that are vital are not truly from their company’s hands.

Free Resource from Data Center Frontier White Paper Library

Hybrid Cloud

High-Tech Firms Tackle Business Challenges with Hybrid Cloud

In order to take advantage of DX and handle Business challenges, tech businesses are currently utilizing the cloud — especially . Download the new report from Digital Realty explores how the hybrid cloud provides tech companies with the capacity to drive down IT costs, greater speed and agility when embracing new business opportunities, along with the capacity to protect critical business data and software from external and internal threats.

Reducing complexity Tangible benefits. Colocation means the internal IT team has more time to focus on other mission-critical initiatives.

“Reductions in operational cost and the ability to Focus your IT team in your core business means that information centers offer organizations the ability to maximize the capacity within their businesses,” Data Center Knowledge contributor Rowland Kinch wrote. “For financial supervisors and IT directors, colocation provides the perfect win-win scenario, providing cost savings and delivering state-of-the-art infrastructure.”

Colocation services are cost effective Than building a dedicated data center.

Reliability to Avoid downtime costs

By now, it’s no secret that downtime can be expensive for Enterprises, particularly when it comes to their applications. The most recent research on this topic from IDC and AppDynamics found:

Program downtime prices Fortune 1000 companies

Each hour normally.

Failure may cost as much as $100,000 each Hour systems are unavailable.

Luckily, the redundancy and expert staff at Colocation facilities can help prevent these downtime expenses. FORTRUST is a leader in the industry in regards to reliability, recently celebrating 14 years of systems uptime.

What is more, colocation services can help support Levels of redundancy by providing a secondary location to companies. This manner, even if a company’s main data center is due to other issues or weather, employees can access critical data and applications through the atmosphere that is colocated that is secondary.

Submitted by Josh Moody. Colocation can offer numerous other Opportunities for cost savings when companies select an industry Pioneer like FORTRUST. In addition to our systems uptime Record, our clients have access to COLOVIEW to guarantee visibility into Their environment. To find out more, contact us center today.

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