Traditional colocation offers cost savings and service enhancements based on economy of scale. The idea is that one larger environmentally controlled, highly secure and well connected data center is more efficient than hundreds or thousands of stand alone private data centers that have to meet the same requirements. This certainly makes sense. A server in your rack may be the same as the server in the colo rack, except they host hundreds or thousands of them. The backup generators at the colocation center aren’t hundreds or thousands of times larger or more expensive than the one you have in its own building out back. Nor is the fire suppression equipment, HVAC, or 24/7 staffing.
The other advantage that you find in colocation centers is connectivity. There is no way that multiple carriers are going to move into your company just to give you the option of connecting with them. They do just that at the colo. Carriers love to set up shop in colocation centers because they know that there are plenty of potential customers needing high bandwidth WAN connections. Once established, all that is needed is a simple cross connect to connect users and carriers.
In itself, this is a good reason for you to move to a colocation center. Even if you are perfectly happy with your infrastructure and technical staffing costs, how easy is it to get bandwidth? Well located business have many options to choose from. Companies that have built off the beaten path may find that fiber optic services are hard to come by or very expensive to bring in. There’s a strategic advantage in moving your high performance servers and bandwidth demanding public facing applications to a colocation facility. You can then use more modest bandwidth to communicate with your server farm.
Telx takes this to the next level with their Cloud Connection Centers. Telx is a major player in colocation services and carrier connectivity. This year, they’ve started offering a new service called cloudXchange that is a global community of providers and users of cloud services. Members colocate within the Telx facilities. Telx provides the cross connects and other interconnections to link users and providers.
Isn’t the whole idea of the cloud that it is “somewhere, out there” and you save money by buying cloud services on pay as you go basis instead of managing your own equipment? For smaller companies, especially those who don’t want to deal with technicalities, that’s a model that works. Larger organizations have found problems with this simplistic model. A big problem is latency and bandwidth in connection to the cloud. Other issues include the need for private as well as public clouds to ensure security and performance while reducing costs.
The whole movement to the cloud has become so important that Telx has rebranded their 15 colocation and connection centers as Cloud Connection Centers. Within those centers, you have easy access to cloud computing, storage and Software as a Service (SaaS) resources. You have an almost infinite array of options from running your own equipment to completely outsourcing to cloud vendors and any mix in-between.
How strong is this trend to everything in the cloud? Strong enough that Telx is breaking ground on a brand new 215,000 square foot data center in Clifton, N.J. to complement their existing Clifton facility and their New York City center at 60 Hudson St. A private fiber ring will connect 60 Hudson and Clifton to minimize latency.
Are you in the midst of doing private vs public vs hybrid cloud tradeoffs against traditional colocation and operating your own private data center? This would be a good time to explore additional options offered at a Cloud Connection Center to complete your cost/benefit analysis.