What is Colocation and Does My Medium Business Need It?

Many small businesses eventually grow enough to face the challenge of managing their IT infrastructure efficiently while still focusing on their core business operations. Colocation services can be part of a solution to this challenge, offering to house a company’s servers and computing hardware in third-party data centres. At SilverServers, we proudly manage the Kamloops Data Center, providing tailored colocation services that meet the unique needs of small businesses. This article explores what colocation is, when a small business might need it, and some advantages (and disadvantages) of choosing a local colocation provider over larger, well-known providers.

What is Colocation?

Colocation is a service where businesses can rent space for their servers and other computing hardware in a third-party data center. The data center provides the physical space, power, cooling, bandwidth, and security necessary to house the servers.

When Would a Small Business Need Colocation?

A small business might need colocation services in the following scenarios:

• Scalability: When the business needs to scale its IT infrastructure without investing heavily in building and maintaining a private data center.
• Reliability and Uptime: When the business requires high availability and reliability for its applications and services, which a professionally managed data center can provide.
• Security: When the business needs enhanced security measures for its data and IT assets.
• Cost-Effectiveness: When the costs associated with maintaining a quality in-house data center are higher than the cost of colocation.
• Focus on Core Business: When the business wants to focus on its core operations rather than managing data center facilities.

Types of Small Businesses That Often Need Colocation Services

• E-commerce Companies: Require reliable, secure, and scalable infrastructure to handle online transactions.
• Financial Services: Need high levels of security and compliance for sensitive data.
• Software Development Firms: Require robust and scalable environments for development, testing, and deployment.
• Media and Entertainment: Need large storage and high bandwidth for content delivery.
• Healthcare Providers: Require secure and compliant storage for patient data.

Difference Between Big Name Colocation Data Centres and Local Smaller Colocation Data Centres

Choosing between big name colocation data centres and local smaller ones can significantly impact your business. Below are some key differences to consider when making your decision.

Big Name Colocation Data Centres (ex. Telus)

• Scale and Reach: These data centers have extensive infrastructure and global reach, making them suitable for businesses with international operations and high budgets.
• Advanced Features: They offer a wide range of advanced features, such as enhanced security protocols, redundant power supplies, and disaster recovery options.
• Compliance: They often comply with international standards and regulations, which is crucial for businesses in highly regulated industries.
• Reputation and Reliability: Established brands are known for their reliability and service quality, reducing the risk for businesses.
• Cost: Typically, these services come at a higher cost due to the premium features and extensive infrastructure.

Local Smaller Colocation Data Centres (ex. Kamloops Data Centre)

• Cost-Effective: These data centers often provide more affordable pricing options, making them suitable for small businesses with limited budgets.
• Personalized Service: They may offer more personalized and flexible services, catering specifically to the needs of small and medium businesses.
• Local Support: Proximity allows for easier access and quicker support for maintenance and troubleshooting.
• Community Focus: They often understand the local market better and can tailor their services accordingly.
• Limited Features: While they provide essential colocation services, some may lack some of the advanced features and scalability options offered by larger providers. Ask about the data centre’s offerings and consider your business needs against them.

Selecting A Canadian Colocation Data Centre

Choosing between a big name and a local colocation data center depends on the specific needs of your small business, including budget, required features, and the importance of local support versus advanced infrastructure. Each option has its own set of advantages and potential drawbacks that need to be carefully evaluated based on your business' unique requirements. Contact a data centre near you for more specific details about their particular features and strengths.

If you're a small business in western Canada seeking a reliable, local colocation provider, consider contacting the Kamloops Data Centre managed by our SilverServers team. Our facility is strategically built right on top of the cross-Canada fibre lines and in a geographically stable location, ensuring low latency and dependable connectivity. We offer personalized service and cost-effective solutions tailored to your business needs. Reach out to us today to learn more about how our colocation services can support and enhance your IT infrastructure.

Ask About Colocation Today

For related articles, visit the colocation section of our blog. Visit our Colocation Services page for more information.