The Right Data Center For Your Business
Advantages of cloud, colocation, managed and in-house data centers.

By: John Shepler

Data centers are certainly in the news these days. Most of it focused on the near-viral expansion of AI hyperscale facilities that are overwhelming local power and water utilities, resulting in a contentious standoff between concerned citizens and massive tech innovators. But that’s just a small part of the data center industry. Your business is unlikely to go hyperscale, but you can still benefit from data center services. In fact, it’s likely you need them.

What is a Data Center?
A data center is where you find data, right? That’s correct. But it’s also where you find the computing, storage, networking and facilities to store and make use of that data. If all you have and use is a single computer, the data center is right inside. But, if you need to support a website, sell online, interconnect multiple computers or process files too big for a single machine, you’ll be using a data center. Even that single computer might want online backup.

Types of Company Data Centers
Data centers come in various sizes, depending on your needs. The simplest is an in-house data center, once called the server closet. It may be as simple as a single rack with a few servers, network disk storage, backup power supply and ventilation or cooling. Security is a lock on the door. 

Larger companies create whole rooms or special buildings dedicated to their computing resources. These are enterprise data centers. They are under the control of a single company and dedicated to its needs. Often this facility will be in the same building or on the same campus as other company buildings. However, it may make sense to locate the enterprise data center a distance away for protection from disasters such as fires, floods and earthquakes. 

When you get this much equipment, you’ll likely need larger scale HVAC environmental control, fire suppression, security monitoring, and building maintenance. Now the question is whether to provide all this yourself or outsource it. A managed data center is an enterprise data center that is run by a third party. This operator may own the facility and provide the staff. They may also handle IT tasks such as software updates and server maintenance. 

Moving Out to a Colo Data Center
A colo or colocation data center is a multi-tenant version of the single company enterprise data center. The colo operator provides the facility, security, environmental control, backup batteries and generators, rack and cage space, and wiring. They also generally have multiple carriers with a presence in the building. You get easy access to massive amounts of bandwidth that might be harder to come by where you are located. That includes fiber, wavelength, and dark fiber services depending on your needs.

The advantage of colocation is that you are saving money vs running and/or owning the facility yourself. That’s the upside of sharing costs. It likely won’t affect a small to medium scale business because you’ll have your own racks and perhaps a cage to house them in for security. When you need to make updates, you just visit the facility. 

Some colo companies offer extended services. They will maintain the servers, patch the software, add disks and so on using their in-house tech staff. They may also offer to lease you servers, disks, switches and the like so you don’t have to bear the capital expense. Pick and choose the level of support you want. That’s especially great for smaller companies that don’t have large tech staffs. 

Cloud Data Centers
They say there is no cloud. It’s only somebody else’s server. That’s about right. The thing we call the cloud looks a lot like a colocation data center. The difference is that the cloud operator owns and runs everything. Resources are shared among tenants but not segregated like in a colo. Instead, most everything is virtualized. You don’t necessarily know what server is running your process or what disk your data is stored on. It’s likely that many companies are sharing all the facilities. 

The cloud might offer even greater cost savings than colo. The massive facilities also have reserve capacity so that you can easily scale up or down as your needs change. It is possible to make this automatic or “elastic” so that you pay for what you use on a moment by moment basis. 

This is what is known as the public cloud. There are also special versions of cloud data centers. A private cloud uses the same virtualization as the public cloud, but all resources are dedicated to one company. That can be located within your own facilities or in a third party location that might have many other private clouds physically separate in the same building. A hybrid cloud is a mixture of public and private clouds that share data and applications. You may want privacy for sensitive data but a public cloud for web traffic. 

What type of data center is the best match for your business? Compare capabilities and costs for general hosting, managed, colocation and cloud data centers to see what works for you. 

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