What is Colocation? - Data Center Fundamentals
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- เผยแพร่เมื่อ 29 มิ.ย. 2024
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0:00 - Intro
0:23 - Office competition
7:50 - 60 Hudson Street
10:20 - What is Colocation?
25:54 - Colocation vs Cloud
28:44 - Outro
Colocation is leasing digital infrastructure from a data center operator.
This is an episode of HawkPodcast, datacenterHawk’s viewpoints on the data center industry. If you enjoyed this episode, you can check them all out on our blog.
On this podcast, David and Mike go over the second of eight topics on data center fundamentals. We covered this in a blog series as well as an email course. Today, we answer the question “What is colocation?” and discuss some of the defining characteristics of this aspect of the data center industry.
What is colocation?
One option of having digital infrastructure is to build and operate your own data center, but this is mainly for large scale data center users. Colocation offers the option of leasing data center power and space from a data center provider.
Colocation leases can range in size from several servers to an entire data center. Data center providers prefer to structure leases in different ways depending on user needs and lease size.
Leases of 50 kilowatts (kW) and less
Smaller footprints are usually all-in leases, where the user pays a set price per month with little variation. The price includes both the rental rate and power cost.
Leases of 50 kW - 5 megawatts (MW)
These leases are often Gross + Electric, where the user pays a set price per kW of data center infrastructure they lease per month, plus the cost of the power they use.
Leases of 5 MW and higher
Larger leases are often Triple Net (NNN), meaning the user pays the provider to use the space, but manages a larger portion of the operations and utilities themselves.
Benefits of colocation vs on-premise data centers
Many companies prefer colocation to owning and operating their own data center for the following reasons:
1. Save on outsourcing specialized skill sets
Data center operation requires a level of expertise that many companies often lack. While it’s possible for companies to develop a staff to fill this role, it’s often faster, less expensive, and more efficient to outsource the requirement. Data center providers are experts in colocation and can provide specialized solutions that best fit their customer’s needs.
2. Increased flexibility
Because IT strategy can change quickly, companies value fluidity with their data center infrastructure. A company’s data center may fit their needs today, but could be inefficient later. Colocating provides flexibility and helps users avoid getting stuck in a solution that doesn’t fit their needs.
3. Cost savings from provider’s scale
Data center providers are experts in designing and building data centers and often do it in a more cost-efficient manner. Large providers can also leverage their size to lower construction and power costs, and these lower costs are passed on to the user, creating lower operating expenses than owning the data center themselves.
4. Ease of customization
Data center providers offer a variety of services to meet their users’ needs. They can also use their scale to attract third-party service providers, which creates a valuable ecosystem hard for single users to replicate.
5. More fiber connections
A colocation data center often has stronger fiber infrastructure and easier access to cloud service providers, giving users low latency to their cloud environments and the end-customer.
6. Easier path for growth
Growing your data center presence is easier with a data center provider. The relationship between a user and data center provider is typically seen as a long-term partnership. Should a company need a data center in a new market, they can often deploy infrastructure in their provider’s facility in that region.
Colocation for the cloud
More and more demand is being placed consistently in third party data center facilities. Even large tech companies like Microsoft, Facebook, and Amazon find leasing data center space to be a viable strategy in addition to owning and operating the infrastructure themselves.
The benefits of colocation make it an essential aspect of many companies’ IT strategy. In this podcast, we discuss just a few of the reasons why a company would want to utilize colocation, but there are many more.
Don’t forget to check out the rest of our HawkPodcasts and don’t miss out on our latest release of market data for the data center industry.
#DataCenter #WhatIsColocation #DataCenterFundamentals - วิทยาศาสตร์และเทคโนโลยี
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Love your content. Thank you for all you are doing.
We're happy you've found it helpful!
Great work guys.. Love from India ❤️
Sameer Thorat Thanks for watching!
The 60 Hudson St. Westinghouse building was built for Nicola Tesla, who lived there and had a lab in the top of the building.
Very cool! Thanks for the fun fact about the building.
you guys killed it. I have one question though for the KWatts pricing, Say I have a server R740 and the documentation says it has a power supply unit of :495 W, With 1908 BTU/hr, with 50/60 Hz, along 100-240 Volts AC, and it draws current between 6.5 A-3 A.
Shall I ask for 495 Watts or shall I ask for 495*0.25 (assuming P25) or if it works all the time around the 70% cpu load-average I have to ask for 495 Watts * 0.7 (assuming P70). How does that work? or is it the case where the data-center operator will charge me for the 495 Watts regardless of the load-average?
I really love your content!! I have a question, What is the advantage of doing business with a smaller Data Center (1-5MW) than big players with a 20-100MW+ capacity? Like how Smaller Data Centers Attract Big Customers in Order to Grow?
Glad you like our content and thanks for the great question! We'll be sure to put this on our list of topics to cover in an upcoming episode so be sure to subscribe to be notified when we upload a new video.
Hi! We just released a new video and we mention your question above about the advantages of doing business with a smaller data center! Be sure to check it out. Thanks again for reaching out and let us know if you have any more questions or topics you would like us to discuss.
Here is a link to the video:
th-cam.com/video/8a9yJ9UUVEM/w-d-xo.html
Awesome content guys!
Could we cooperate?
Thanks, we will reach out to discuss further.
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