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Manage colocation costs to avoid billing surprises

A switch to colocation isn't as simple as signing a contract, and doesn't mean IT teams can wash their hands of cost management. Carefully review a provider's SLA and actively monitor colocation costs to stay on budget.


The colocation market continues to grow, as organizations look to meet their growing needs for compute outside of their own on-premises data centers. An expansive marketplace of providers offers a plethora of colocation services, but a strong service-level agreement between providers and users -- and understanding colocation costs -- requires more than just a handshake.

IT admins who oversee the transfer of systems and workloads from inside an organization to a colocation facility have a lot of moving parts to deal with. Security, service-language agreement (SLA) jargon and, of course, budget concerns can all be a major headache. Before making the move to colocation, consult with the business side to make sure it's a good financial decision. After the move, be sure to carefully monitor, manage and optimize colocation costs.

1What to look for in a colo SLA-

SLA tips and tricks to avoid an unforgiving contract

An SLA helps IT organizations understand their colocation costs -- but it's important to read the fine print. What happens in the event of a power outage? How does the provider handle security at both the physical and technical levels? IT teams need to carefully examine each of these questions, and many others, to ensure the SLA is fully understood before it's signed. They need to understand their responsibilities, versus those of the provider, and whether colocation costs might change over the course of the contract.


Ensure your colocation SLA meets long-term IT needs

Don't view your colocation SLA as a short-term commitment. Identify providers with a strong track record and expansive features around cloud computing, third-party marketplaces and more to ensure a solid partnership in the long haul. Continue Reading


Don't let colocation SLA jargon trip up IT

Sometimes, the terms of an SLA can be tough to understand. Before signing an agreement, ask important questions, such as whether your colocation SLA allows a provider to back out at any time, or how often the terms will be updated. Continue Reading


Scrutinize security, uptime commitments in colocation SLAs

Before the negotiation process with a colocation provider, IT teams need to identify their specific redundancy, uptime and security requirements. Then, they should carefully inspect potential colocation providers, and their contract language, to make the right decision. Continue Reading


Noisy neighbors in colo can ruin the party for everyone

Noisy neighbors in a colo environment can negatively affect your workload performance. Ask your provider how it handles this issue and whether these terms are included in your SLA. Continue Reading

2Manage colocation costs-

Maintain and optimize your colocation budget

If an organization needs to save money, closing down an on-premises data center may seem like the best way to cut costs. But even after IT teams ship equipment and workloads to a colocation facility, cost management is key. Carefully monitor colocation costs to make sure you aren't bogged down by extra fees and services that don't apply to your organization. Learn what to look for in a colocation bill to avoid unexpected charges down the road.


Smart financial strategies steer admins toward colo and cloud

Annual budgets impact more than just the business side of an organization. IT teams should look to colocation and public cloud as money-saving measures versus expanding their on-premises data centers. Continue Reading


Pay-as-you-use model boosts colocation's appeal

Cloud's pay-per-use model makes it attractive for off-premises data storage and computing. But now with colocation providers, such as Aligned Data Centers, pursuing this same billing method, IT can better optimize colocation costs. Continue Reading


Automation drives down data center outsourcing costs

Increased automation has reduced the cost of outsourced data center options like colocation. But that doesn't mean IT teams should stop pushing their providers for more innovative services down the road. Continue Reading


Setup, uptime can drive up colocation costs

Setup, change and network charges, combined with hidden fees of uptime, can be costly additions to a colocation bill. Read your SLA carefully and identify tricky language that could increase your payments if you aren't careful. Continue Reading


Monitor your colocation bill to avoid expensive, surprise charges

Cabling, cross-connection and remote hand services fees can all cause your colocation bill to balloon with unexpected charges. Monitor your bill and evaluate your SLA to make sure your costs don't skyrocket. Continue Reading

3Colocation market evolves-

Growth, expanded features highlight colocation marketplace

While planning your future colocation budget, be sure to factor in new and evolving colocation provider services, such as interconnectivity to the public cloud, third-party marketplaces and more. Understand the benefits and tradeoffs of these new offerings, and the overall impact they could have on your organization's colocation costs.


New colocation trends entice data center teams

The colocation market continues to grow, and new trends like green and renewable energy, interconnections to the public cloud and expanded marketplaces offer IT plenty of options to take their compute needs outside the data center. Continue Reading


How to make a match in a colocation data center

New marketplace offerings from colocation providers allow users to find and interact with third-party services that meet their needs. This matchmaking process also drives new opportunities for partnership and expansion. Continue Reading


Colocation facility sales open door for neutral connections

The sale of colocation data centers from Verizon and CenturyLink created some questions from tenants, but the transactions may open the door for stronger cloud opportunities and neutral connections across platforms. Continue Reading

4Colocation glossary-

Important colocation terms IT needs to know

Use these terms to develop a general understanding of what exactly a colocation data center is, the services providers offer, and components of a colocation SLA.

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