Saving Money with Colocation in Canadian Data Centres

If you are a business owner or executive, finding ways to save money on IT is probably high on your “To-Do List.” As necessary and vital as technology is to running virtually any kind of organization, it can also represent a bit of a budgetary black hole – and an area of the company where you might struggle to make the right choices and investments.

What you may not know already, however, is that reducing your IT expenditures doesn’t necessarily have to mean making hard choices between budgets, performance, and reliability. In fact, thousands of companies throughout Canada and the world are actually getting more from IT while saving money through the process of colocation.

How Colocation Works

In a traditional IT department, servers, networking equipment, and other pieces of technology are stored together in some remote portion of an office or facility. These typically receive attention only when something stops working the way it’s supposed to, and then the repair process can be lengthy and expensive – especially if new hardware or equipment is needed.

With colocation, things are simplified. Instead of keeping technology equipment on site, companies outsource those needs and simply lease what they need at a given point in time. In other words, they stop holding on to their own servers and networking equipment and simply use space on a business data centre located elsewhere.

Aside from the obvious benefits that come with not having to buy and install their own hardware, businesses gain tremendous advantages through the use of colocation in Canadian data centres.

5 Key Benefits of Colocation in a Canadian Data Centre

1. Lowered hardware costs. Actually, most businesses can eliminate their networking hardware costs altogether with colocation. That’s because, instead of investing tens of thousands of dollars in new equipment on a regular schedule, you pay a low monthly fee to use what you need. For most companies, that means a very significant cost savings. It also means they can stop worrying about the kinds of unplanned hardware investments decision-makers at every level worry about most.

2. Better technology and performance. Even though cost savings are a major attraction when it comes to colocation, you shouldn’t overlook the actual performance upgrades that are possible, as well. Because technology investments and upgrades can be pooled and shared over several different businesses in a data centre, you ultimately end up getting access to better equipment than most companies would purchase on their own. And, because performance is important to marketing colocation services, savvy IT providers upgrade to newer models all the time, meaning you get the very best for less.

3. Lower overall IT expenses. Aside from the obvious hardware savings, most companies that make the switch to colocation enjoy lower IT expenses in other areas, too. This often stems from the fact that software packages can be leased on similar monthly agreements, and that they suffer fewer problems associated with software and hardware failure. In other words, colocation in a Canadian data centre means fewer errors and less downtime. Those might be difficult costs to calculate, but every business leader knows the impact they can have on the bottom line.

4. The flexibility to scale technology up or down. Managing technology can be incredibly difficult if your company is growing too quickly, if only because the sudden need for more hardware and bandwidth can make expansion costs prohibitive. Even worse, if you need to scale your technology or operations back to save money, you might be faced with the uncomfortable prospect of selling equipment you’ve purchased at a loss. With a colocation plan in place, both of these problems are alleviated because you can scale your services up or down as needed – in an instant, and without any long-term financial repercussions.

5. Increased IT security. You don’t have to pay much attention to the news to know that the security of your technology is more important than it’s ever been in the past. What better way to keep data safe and sound than by having it stored and backed up regularly in a secure, climate-controlled, and continuously monitored environment? The average Canadian data centre is many times more safe and reliable than the office building or facility they replace.

Colocation Gives Businesses a Bit of Everything

For most organizations, and especially those that don’t have the resources to obtain or purchase high-performance technology equipment, colocation offers a number of important financial and performance benefits without any trade-offs. It’s no wonder so many companies are looking to Canadian data centres for colocation in 2014… shouldn’t yours be one of them?

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Comments

  1. Great points for colocation here! This can be a great method for those companies on a budget. You will benefit from super fast internet, high security facilities and usually 24 hour support and assistance should you need anything.

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