Server room (colocation) or colo with several cabinets, server, switches and gateways.
Colocation pricing refers to renting server racks and space in a data center. This method works for businesses whose computing needs exceed the capabilities of their hardware and software. It’s also used by companies that don’t have the resources or expertise to build data centers or manage their IT infrastructure and need someone else to do it for them.
Colocation providers offer data center facilities where customers can place their servers and equipment. They provide power, cooling, and other essential services, such as backup power generators or fire suppression systems, to keep servers running smoothly. Most importantly, they provide security so only authorized staff members can access the equipment being hosted at their facility.
Discussed below are four new technologies that have changed the way data centers operate and how they affect server colocation pricing:
- Open-Source Software
Open-source software has made it easier for companies to build customized systems without paying licensing fees or relying on proprietary software from vendors. This software allows users to access services from multiple providers through a standard interface instead of being locked into one service or another. This way, the vendor can offer different services at various price points, such as security or monitoring.
For example, a company might want to use an open-source firewall to secure its network but then it also needs to purchase security scanning tools from another vendor to address any vulnerabilities discovered by the firewall. Open-source software allows clients to keep their options open and give them more control over their business’s technological infrastructure without committing to a single provider
- Cloud Computing
Cloud computing allows companies to rent processing power and storage space from third-party data centers rather than building their facilities. This has opened up new opportunities for colocation providers and made their services more affordable for customers who need more computing resources at affordable rates.
Cloud computing can affect server colocation pricing in many different ways. For example, renting a server in the cloud may be cheaper than renting a server in your facility. This is because it allows companies to purchase only the capacity they need at any given time and pay only for what they use on an ongoing basis.
- Virtualization
Virtualization allows multiple operating systems to run on a single server, which reduces power consumption and hardware costs. This has also led to more efficient use of space in existing data centers.
Virtualization technology has evolved over the years, but today it’s found in everything from smartphones to mainframes and supercomputers. Here’s how virtualization impacts colocation pricing:
- Reduces Power Consumption: Server virtualization is a highly efficient use of resources, which means your data center can save money on electricity and cooling. This modernization translates into enormous savings for you as a colocation customer.
- Minimizes Cooling Costs: With virtualization, you no longer need dedicated hardware for each application or service. Instead, you can consolidate all applications into one physical server.
- Relieves Network Stress: Virtualization’s ability to consolidate multiple physical servers onto one or more powerful servers relieves stress on your network infrastructure and reduces the need for expensive maintenance contracts. Virtualization also eliminates redundant hardware components, reducing network maintenance and administration costs.
- Improves Disaster Recovery Capabilities: Disaster recovery becomes easier with virtualization because each virtual machine is independent of other systems, allowing it to replicate at any time and location.
- Increases Flexibility: Virtualization enables you to move workloads between physical machines with minimal effort. This allows for more flexibility when responding to changing business needs or disaster recovery scenarios.
- Software-Defined Networking
SDN allows network administrators to manage multiple networks as if they were one extensive network through software, instead of manually using hardware switches and routers. This makes it easier for IT departments to manage networks without hiring additional staff or investing in more equipment. By shifting the management of network resources from hardware devices to software algorithms, SDN reduces operational costs and improves performance at the same time.
For instance, imagine you want to build a new data center facility for your company’s growing business needs. For this, you’ll need SDN to create a ‘smart’ data center that’s easier to manage, more efficient, and more reliable than traditional data centers.
Instead of relying on expensive physical hardware such as routers and switches, you could use SDN software on commodity hardware. This would allow you to quickly set up and supervise new networks when needed and expand existing networks’ capacity without buying new equipment each time you need more bandwidth or processing power.
Key Takeaway
Experts can manage data infrastructures through colocation to prevent cybercriminals from accessing your information. Do remember that the latest technologies affect colocation pricing. But the good news is, these new technologies can make colocation prices more affordable—considering new types of software can handle tasks without the need for additional hardware.