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.
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
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 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.
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
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
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.
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
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.