Choosing a Data Center Colocation Provider vs. Building Your Own

Posted by Chris Isham on Dec 6, 2016 10:46:13 PM

Choosing a Data Center Colocation Provider.jpgIf your business is growing and expanding, you may find yourself at a crossroads. Which is better: choosing a data center colocation solution or building your own. 

Extensive market research reports that the building your own data center in-house can cost up to $3,000 per square foot. This in itself may make looking at colocating your servers to a nearby data center more attractive, but there are some other considerations to keep in mind.

Colocation Makes More Long-Term Sense

IT departments aren’t generating revenue, and more and more they’re charged with saving the company money on critical IT infrastructure.

If you have an in-house IT infrastructure, not only do you need more highly specialized IT staff to monitor and maintain your solution, but their time and attention will be focused on services other than helping you build better products and services. And the size of your IT staff will be in direct proportion to the amount of infrastructure that needs management.

When you choose to colocate your servers with a nearby data center colocation provider, your IT staff won’t be tasked with worrying about power outages or network outages. They can focus on ways to use technology to help your business grow and expand.

Dedicate Your IT Staff

Onsite data centers require around-the-clock maintenance, monitoring, and staffing. Do you have the staff necessary to perform these functions, or would it be more cost-effective to dedicate your IT staff to performing system administration remotely and letting a qualified data center handle everything else?

Since private data centers deal with outages more frequently than a commercial colocation data center, you need to factor into your staffing resources and costs the down-time required to deal with outages. Does your budget allow for additional IT staff that can be available to manage infrastructure? Or would your business needs be better met with a small, talented IT staff that can focus more time and attention on business-building activities and technology?

It might make more sense to have a nimble IT staff that can focus on projects rather than on maintaining and monitoring infrastructure.

Save Money While Focusing on Sales

Building your own data center will cost a lot more than contracting with a data center colocation provider. Over a ten-year period, outsourcing costs compared to the total cost of ownership shows that colocation is 42.3% less expensive for a medium-sized company.

Imagine if you took those savings and invested in technology that supports your sales process and helps convert leads. You can spend more time growing your business and less time worrying about all of the wiring needed, the sophisticated cooling system, raised floor space, and a top-notch physical security system that meets or exceed industry standards.

Perhaps the best reason to consider a data center colocation provider is that you can purchase as much data center space as you need without having to worry about the infrastructure needed to support it. It’s the responsibility of the data center to monitor and address the root causes of outages and physical security breaches, while your IT staff helps support your company’s mission and vision.

The ByteGrid Difference

ByteGrid put together a comprehensive new resource we call the Regulatory Roadmap to help you evaluate and select the best possible data center colocation provider for companies in the healthcare and life sciences fields or those that deal with sensitive government data.

The Regulatory Roadmap is a handy cheat sheet that shows documents, policies, and procedures you should request from a data center colocation provider to ensure they’re compliant in all respects.

You can download your copy today at for free. Before you choose a colocation provider, look through this handy resource and use it as a checklist for comparison. You’ll notice the difference immediately.

Topics: Compliant Colocation

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