Colocation server hosting providers

Colocation Supports Price Savings

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

Colocation Supports Price Savings

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

As more companies invest the Marketplace, in colocation server hosting Continues to grow. According to the latest findings in 451 Research, the colocation market is on track to surpass $33 billion over the next two years.

Josh Moody

SVP Sales FORTRUST, josh Moody

While colocation services represent an investment on The portion of businesses, these solutions may also support an array of cost savings which extend to every business department.

“Cost reduction frequently starts with IT,” Accenture Strategy Pointed out. “By taking advantage of new technologies, CIOs are far better positioned to launch another wave of price reduction.”

Colocation services are uniquely positioned to support Businesses this way. Let’s Look at all of the ways companies can save costs by leveraging the expert services of a colocation provider:

Instead of buying, leasing

For businesses that find themselves in need of additional Computing support not dependent choices boil down Leasing distance in a colocation facility, or even building a data centre. The purchase price of establishing a brand new data centre is often cost prohibitive while using a dedicated computing center may seem like an attractive advantage. In accordance with OnlineTech, expenses involved here can comprise:

  1. Upfront investments:As much as 25 percent of the Price of a New data centre comes from designing spending connected with preliminary planning and commissioning.
  2. Taxation and permits:Prior to construction can start, Businesses have to ensure that they have the right permissions in place and local taxes are paid. These costs can add up, translating to up to $70 per every square foot that the planned facility will span.
  3. Building costs:Forrester researchers discovered that today’s Companies must plan on investing $200 for every square foot so as to build the shell of this facility and apply the required physical safety.
  4. Infrastructure:Enterprises must also factor in The expense of systems, the equipment and configurations required to support procedures. Infrastructure costs can range from $7,000 to $20,000 each kilowatt of IT load, depending on the company’s needs.

And this only scratches at the surface of their investments Needed for data center construction. Spending on power utilities can account for as much as 80% of operational expenditures, and maintenance can contribute to 5% of total expenses.

Many businesses don’t possess the financial Resources or a time-to-market strategy that is flexibe to support a data center’s building. It’s more cost effective and budget friendly to operate with a provider that has the facility, utilities, systems and computing equipment in place.

Built-in scalability

In addition to eliminating the requirement for the construction of Colocation, A brand data center may save companies money when it comes to scalable resources. As a result of the flexibility of colocation services, companies are always able to scale their surroundings down or up to match their needs. This way, companies never cover more funds than they need, and resources could be added in the cheapest manner.

Slimming onsite complexity

Cost savings result from reducing the Amount of Systems in the most important headquarters and branch offices of the business. With colocation support set up, the internal IT team of the company can rest easy knowing that their critical computing environment is in the hands of experts. At precisely the exact same time, colocation empowers IT admins to have total visibility into their environment and activity. This implies that while assets and gear are saved off-site, these resources that are vital are never truly out of the hands of the company.

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Reducing complexity This Way results in a range of Tangible benefits. Colocation means the internal IT group has more time to concentrate on additional initiatives that are mission-critical.

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

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

Reliability to prevent downtime prices

By now, it is no secret that downtime can be costly for Businesses, especially in regards to their applications. The most recent research on this topic from IDC and AppDynamics found:

Unplanned application downtime prices Fortune 1000 companies $1.25 billion to $2.5 billion each year.

Each hour on average.

Failure can cost up to $100,000 each Hour systems are inaccessible.

Thankfully, the redundancy and expert staff Colocation facilities will help prevent these staggering downtime costs. FORTRUST is a pioneer in the industry in regards to reliability, recently celebrating 14 years of critical systems uptime.

What is more, colocation services might help support additional Degrees of redundancy by providing companies with a site that is secondary. In this manner, even if a company’s main data center is due to weather or other issues, workers can access applications and information via the secondary atmosphere that is colocated.

Submitted by Josh Moody. Colocation can offer numerous other Opportunities for cost savings, especially when companies select a business Leader like FORTRUST. In addition to our systems uptime Record, our customers also have access to COLOVIEW to guarantee visibility into Their surroundings. To Discover More, contact us for a tour of our Denver data center today.