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Colocation: concepts and benefits of collocating shared data center spaces


Colocation or housing are nothing more than shared data centers. In this type of service, the operator rents spaces to several companies, this includes all the necessary infrastructure for the operation of the data center, such as energy, cooling equipment, internet access, security and others.

In logistical terms, it would be something similar to installing your distribution center in a logistics condominium, or even a last mile operation in a selfstorage, instead of renting an individual warehouse. With this, several advantages are obtained, such as the reduction of operating costs. To learn more about the subject, click here.

Being in a colocation can help save long-term costs, ensure 24/7 reliability with minimal power outages, and achieve more business sustainability and flexibility.

Which companies can take advantage of a colocation to house their data center?
Large technology companies like Microsoft, Google, Facebook, cloud service players have their own data centers. This makes perfect sense, as they process a huge amount of data. In fact, data is its core business.

But the vast majority of companies need a data center and do not have the demand to justify the high investment in one. The colocation is ideal for this type of company.

In Brazil, there are several data center operators in colocation mode: Equinix, HostDime, Ascenty are some of them.
Main advantages of sharing this type of space:

Cost savings
With enterprise data throughput doubling every two years, on-premises data center facilities will need to keep up with increasing storage and maintenance requirements with the need to manage outdated infrastructure, IT sizing, connectivity solutions and power/cooling systems. , which can be expensive and inefficient.

As with real estate leases, migrating to a colocation data center can help you achieve a more predictable cost structure with long-term Capex and Opex savings of between 30 and 50%.

On-premises data center facilities typically have a PUE above 2.0, while most colocation and hyperscale data centers aim to achieve a PUE below 1.5. This means that just by migrating your data center to an off-site colocation facility, you can reduce your organization's carbon footprint.

Due to increasingly stringent government regulations and updated criteria on the impact of data centers on the environment, operators are required to consider sustainability measures in the construction, operations and maintenance of their data centers, automatically helping occupants with their ESG goals.

Security and reliability
colocation data centers are built around state-of-the-art infrastructure with high levels of physical security and skilled professionals with 24/7 on-site maintenance providing optimized information and up-to-date operations.

They also have multiple layers of power backup solutions across standby and fully wired network connections to provide more protection against outages and help ensure critical business functions can run with 99.9% - 99.999% availability and reliability.

Scalability and flexibility
colocation players operate hyperscale facilities with sufficient IT power load in single or multiple locations, providing sufficient infrastructure that can facilitate the most demanding requirements. As a result, they can meet the company's downsizing or expanding needs.

The colocation operation is critical to achieving peak time, performance and efficiency to enable the enterprise to leverage a cloud operating model that can cater for everyone, increasing online demands and remote working requirements.

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