Five Things to Know About Colocation Pricing

Colocation data centres are now popular among companies. Renting space from third-party data centres offers organizations convenience and flexibility. While the market for colocation services expands, the cost of collocating servers remains a significant consideration for businesses. Thus, understanding colocation pricing is crucial. Colocation costs vary depending on the unique needs of a business. However, with insights on factors that impact pricing, determining prospective colocation costs is a simple task.

Here are five things to know about colocation pricing

1.    Costs depend on the physical space on rent

At a colocation facility, servers are placed into racks within cabinets. Service providers charge fees from clients depending upon the number of racks on rent. The types of server in a colocation data centre vary at times. So, different categories of racks can have different costs. Sometimes renting an entire cabinet with multiple racks is also a viable option. Providers have separate pricing policies while renting out cabinets and colocation cages.

Physical space in a colocation data centre is rented out on a square foot basis as well. Providers charge a fee depending on the amount of square footage that a company's assets occupy.

2.    Internet and bandwidth requirements influence costs

A major part of the total colocation charges is linked to connectivity options that a company chooses. Superior connections are essential for businesses to operate with the least downtime. Thus, providers offer high-speed internet and factor in the prices for it. More specialized connections are also available for companies at a higher cost.

Colocation bandwidth is another variable in colocation pricing. The higher the bandwidth, the more data a company can transmit in a certain period. Providers offer flexible bandwidth plans. So, companies can pay for the bandwidth they need.

3.    Power demands determine prices in collocation

Power demand is a primary factor in colocation pricing. Colocation providers offer different modes of power billing. Companies can buy power by kilowatt or on a per circuit basis. Metered power billing and combined power and space billing options are also available. Power usage efficiency has a lot of impact on power costs. When a data centre has energy-efficient equipment, its customers can enjoy lower power bills.

4.    Location influences colocation pricing

Distance and location of data centre facilities have major implications for companies. Hence, colocation pricing depends on the region where a facility is situated. Data centres in central areas ensure proximity to end-users. Hence, they cost more than the ones that are located in outskirts or growing markets. This is so because proximity reduces latency and facilitates smooth operations.

5.    Pricing varies according to specialized on-site services

Colocation providers offer many services besides renting out servers. Companies can opt for on-site support for routine maintenance or troubleshooting. In some data centres, there exist colocation hosting services as well—these services impact colocation pricing dynamics in many ways.

Conclusion

By looking at individual components of colocation pricing, it is easy to understand how service providers quote costs. Thereafter, striking a perfect balance between the costs and benefits of colocation becomes possible.