Colocation is a term in the data storage world that refers to the practice of renting space in a data storage facility for your company’s servers. Collocation service generally includes the building where the servers are housed, networking, security, redundant power, and cooling components, and of course, the server space. Utilizing colocation services allows businesses to drastically reduce costs by avoiding building and maintaining their own data storage facilities altogether. So, could colocation services benefit your business? Find out below.


Colocation Features


     Data Storage Facilities

Colocation facilities offer a physical space in a data center for your business’s IT hardware. These facilities are audited regularly to ensure reliability. Colocation facilities include racks, cabinets, and cable trays for you to use for your own IT equipment.



Colocation data centers are designed to be fail-proof. They have backup generators with redundancies and battery backup systems. Tier 3 and above facilities have uninterruptible power supplies.



As anyone in the IT field knows, cooling is a vital component of data storage. Colocation facilities provide cooling systems to protect your hardware and your data. These systems include redundant HVAC systems and chill configurations with cooling towers and water pumps.


     Physical Security

Security is another crucial component of data storage. While cyber security may seem like the obvious focal point, physical security is also necessary for data storage and protection. Colocation services include high levels of surveillance, typically 24/7/365.

Why is colocation important?


In addition to saving companies cost, colocation allows businesses to rest easy knowing their data and physical IT are safe from physical harm. Additionally, colocation lets your business run several applications and services. For example, combining several servers together can provide additional security and a more stable internet connection for your business. Colocation facility’s geographical location can also help companies reduce load time when nanoseconds matter. In the financial industry, high-frequency trading relies on colocation facilities to reduce the time it takes trades to go through. In the last 10 years, high-frequency trading has grown exponentially, thanks in part to colocation. High-frequency trading now accounts for roughly 55% of trade in the United States in volume and almost 40% in Europe in value, according to Tabb Group. Now that high-frequency trades involve cryptocurrencies, whose prices fluctuate rapidly, colocation is more relevant for traders than ever.

So, is colocation right for your business?


If your company values security and performance and doesn’t want to deal with the high cost and physical space required to house your servers onsite, then yes. Colocation is just one of many services Thin-nology offers. Thin-nology is a virtual one-stop-shop for your business’s technology needs. Offering everything from Colocation to Backup and Recovery, Edge Computing, and Remote Workplace Solutions, Thin-nology is the ultimate tool for businesses to meet their data needs. To find out more about Thin-nology’s Colocation Facilities, click here. To find more valuable information on how our technology can better serve your business, head to the Thin-nology blog.