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Your data centre colocation, your home: finding the right premise to sustain and grow IT and business operations

Shehara Viswanathan, Head of Cloud Portfolio, Telstra | Oct. 14, 2016
For most companies, the process of licensing space from a data centre colocation service provider is no different from purchasing a new home. You wouldn't want critical information and processes to reside in a facility that is far-removed, susceptible to outages and breaches, and lacks the necessary amenities to sustain day-to-day business operations and growth.

Making room for tomorrow, today

Finally, if kids are on the cards in the near future, or you're considering having your parents move in at some point, you need to ensure your property has enough space. Scalability is essential in many industries, and IT is no different. Data centres must provide a flexible infrastructure that has the capability to seamlessly support simple and quick upgrades and sustain a rapid growth in performance.

Your colocation provider should offer modular systems that let businesses conveniently address and adapt to growth and other changing business conditions without major disruptions, especially those that are unanticipated. One example is the inclusion of on-demand infrastructure services that make it simple to create and scale applications, so businesses can easily meet enterprise requirements for security, governance and data sovereignty. Lastly, the colocation provider must offer scalability and flexibility to their own network connectivity, should you need to scale your bandwidth due to seasonal loads or short-term projects.

The colocation market is becoming more competitive as new entrants seek a piece of the pie. This drives down rack space prices as providers slash profits to remain competitive. However, as with purchasing a new home, what the building management might or might not disclose is reduced prices come at a compromise, and that's usually quality.

When service providers have to sacrifice quality to meet the market price, customers eventually bear the unforeseen and hidden cost of failure. Service level agreements (SLAs) may even be there to protect the interest of the customer, but they are pegged at a certain percentage of the overall contract value and may not be sufficient to cover the business losses and opportunity costs in the event of a breach or outage.

As the market outlook becomes increasingly challenging, compromising on your data centre quality and capabilities may cost you more in the long run. Fortune favours the prepared mind and true advances come from being knowledgeable at the beginning of an endeavour. At this juncture, choose your data centre colocation provider like you would choose a home for the long haul.


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