Why colocation?

An article by Rickard Hilmersson on how to release funding, increase sustainability and improve connectivity.

My experience, from discussing data centers over the last 15 years, is that if you run an in-house data center, but your core business is something else, you risk ending up with less data center efficiency and accuracy. This is why:

Keeping an in-house data center is a struggle
Data centers require constant investments in technology, security, and people to deliver the best service. Often, it’s a struggle to keep an in-house data center up to speed, both from a technical and compliance perspective. On-premise data centers also require continuous capital investments to ensure the right infrastructure, power, cooling, connectivity, and more, to run in a reliable and effective way. Not to mention new regulations and demands from your customers regarding how data is to be treated, that can require new investments to comply.

With few exceptions, managing an in-house data center is not economical. Sometimes companies with in-house data centers can’t even give an exact number for the cost of running it as the cost is allocated to different areas and departments. In most cases the results rarely meet the standards of professional data center providers whose whole job is specifically focused on the reliability, security and sustainability of their facilities.

This is also why so many companies are looking to colocation to house their IT. Colocation is a flexible strategy that works for most types and all sizes of companies and organisations, even for those that have very high requirements on for example security or sustainability. Colocation is simply less expensive because the housing, necessary data center infrastructure and staff is already in place, and in a large scale. Shared resources, the overhead cost, can be split over several customers without losing quality.

The budget is needed for digital transformation
With colocation you do not have to spend significant budget on the core infrastructure of the data center, like redundant power, generators, or the server room. That is potentially significant savings in CAPEX, money that can be better used to enable your digital innovation.

Besides avoiding building, staffing and managing a data center capable of supporting operations, some of the main reasons businesses turn to colocation are security, data compliance and sustainability. But we will get back to these topics in further details in this blog series.

Connectivity is key
Another important driver is the ecosystem. If you are executing your cloud strategy or a digital transformation, you must optimise communication between different IT systems, platforms, clouds, partners and end-users. And this is all within reach when you chose the right colocation, because you will find other important digital partners in the same facility, to which you can connect with just a cross connect, no need to go out on public internet. And you’ll be able to choose from a number of operators and carriers to connect to your end users.

At DigiPlex, our sites in the Scandinavian capitals, are directly connected to each other through our Nordic Connect platform. This enables our customers to connect to others within the ecosystem – across borders as easily, as securely and almost as fast as if they occupied neighbouring racks in the same facility.

In today’s digitalised world, most organisations rely heavily on secure, reliable and efficient data centers that deliver a high level of business value in a financially viable way. Gartner predicts that already by 2025, 80% of enterprises will have shut down their traditional data centers, compared to 10% today. Finding the right colocation service might be one of the best decisions your organisation can make. It provides all the infrastructure and security you need, without the cost and resources to maintain it – while you still have full control over your servers.

Rickard Hilmersson, Head of Nordic Sales,
+46 707701546

Read more about the benefits of the DigiPlex colocation offering.