Cloud Providers are Utilizing Colocation to Deliver Services

Businesses aren’t the only ones looking to benefit from colocation services. Several cloud computing providers are making the decision to lease space in a colocation facility instead of purchasing or building their own data centers. The cost associated with constructing and managing a data center is significant, and many cloud providers aren’t interested in making the investment.


According to Reed Construction Data, the cost of building a standard one story 22,500 square foot data center starts around $7 million dollars. For many start-up cloud providers, they simply can’t afford to build or outfit a data center. Even the larger, well established cloud providers are opting to lease data center space instead of building or buying their own.

Most cloud providers are choosing to lease space because they need an efficient and robust data center to deliver their service. By utilizing colocation, providers are able to focus more on other aspects of their business, such as advertising or customer service, instead of spending money on hardware, power, or cooling facilities. Providers need to stay current and utilize marketing to establish a competitive edge in order to compete with the hundreds of cloud establishments in the marketplace.

Colocation also offers the opportunity to reach globally dispersed customers quickly. Instead of building an entirely new data center facility, cloud providers are able to lease space in multiple data center locations. This gives them a great deal of flexibility because they are not limited to a single location. It also provides them with a larger target market because they are no longer confined to one geographical area.

Utilizing colocation to deliver cloud services is quickly growing in popularity as more and more providers recognize the benefits. Although building or buying a data center facility may still be the right strategy for some cloud providers, colocation is making it easier for start-ups to enter and compete in the cloud market.

To learn more about the benefits of colocation, click here.

Blog Author: Vanessa Hartung

Data Center Tier Standards: Which is Right for Your Business?

Choosing the right data center for your business can be difficult, especially when there are so many options available. The Uptime Institute, an independent provider of thought leadership, certification, education and professional services for the global data center and emerging Digital Infrastructure industry, has established a system that is designed to rank data centers according to their reliability.

The ranking order is defined by tiers, with Tier 4 being the highest achievable level. The criteria which is utilized to establish the ranks for the data center facilities is several and include elements such as; annual availability of systems, the amount of downtime the facility experiences in a year, power and cooling paths, levels of systems redundancy, and the time the data center can continue to operate in terms of hours if it were to loose utility power.

It’s important to note that not all industry experts agree with this grading formula, but as of right now – this ranking methodology is considered the norm in the data center marketplace.

Below is a break down for each tier:

 Tier 4

  • 99.995% availability
  • Annual downtime of point zero four hours
  • Two independent utility paths from the street
  • Fully redundant (2N+1) infrastructure
  • Able to sustain 96 hours of utility power outage

Tier 3

  • 99.98% availability
  • Annual downtime of one point six hours
  • Multiple power and cooling paths
  • Fault tolerant (N+1)
  • Able to sustain 72 hours of utility power outage

Tier 2

  • 99.749% availability
  • Annual downtime of twenty two hours
  • Single path of power and cooling

Tier 1

  • 99.671% availability
  • Annual downtime of twenty eight point eight hours
  • Single path of power and cooling
  • No redundant components

Which Tier Level is best for My Business?

Most of the mid-size data center facilities in North America are classified as a Tier 3 based on this ranking system. For a majority of enterprises seeking data center space, a Tier 3 environment provides a good balance between infrastructure reliability and the costs associated in utilizing these types of facilities.

Tier 1 and Tier 2 facilities really do not meet the needs of most businesses today. These environments are economical solutions, but typically utilize very little redundancy and support systems to ensure that the environment operates problem free.

On the high side, Tier 4 data centers are the elite facilities and deliver the highest levels of systems and infrastructure to minimize downtime for their clients. These facilities are typically homes for very large organizations, including large financial institutions, as these environments tend to come with a very high price point.

Need help understanding which tier is right for your business? Click here.

Blog Author: Vanessa Hartung

Top 5 Benefits of Using a Data Centre for Business

More and more businesses are starting to recognize the benefits of colocation. By relocating their mission critical information and equipment to a data center, they can save time and money. Colocation data centers provide solutions to companies of any size, whether you only need 1U of space or if you need a whole cage. No matter how much space your business requires, your company will greatly benefit from the services offered by colocation data centers. Below, we’ve compiled a list of the top five advantages of colocation for business.

1. Physical Security: Data center facilities are equipped with multiple onsite security measures. This typically includes closed-circuit television (CCTV), 24/7 monitoring systems, and security personnel. Additionally, many data centers employ biometric security measures and pass cards for those who need to enter the premise.

2. Connectivity: A majority of data centers have fully redundant network connections to ensure that their customers’ business critical applications are uninterrupted.

3. Network Security: Colocation data centers have extensive network security measures, including the latest and greatest firewalls/IDS systems to detect and prevent any unauthorized access to customer data.

4. Redundant Power Supply: Data center facilities employ a combination of multiple power grids, generators, and battery systems in order to ensure that there is a constant source of power. Many centers also have an extensive maintenance process in place to ensure each power source is operating at optimal levels.

5. Customization: Colocation facilities offer a great deal of flexibility in terms of the amount of bandwidth or space your company needs. If your business needs to increase its bandwidth levels, or burst up to a higher bandwidth level, data centers can easily accommodate the increased activity. Additionally, if your company needs more space to store its data, you can easily upgrade your service to meet your storage requirements.

In summary, any business that stores its data offsite at a colocation facility stands to gain considerably from the greater security and performance levels provided without incurring any significant costs. Data center locations are equipped with resilient power and cooling systems, in addition to the high level of security that ensures its customer’s data and IT infrastructure is operating 24/7.

To learn more about data centers, click here.

Blog Author: Vanessa Hartung

Are You Sure Your Data is Protected?

As more Canadian companies adopt new internet technology services, such as cloud computing, cyber security is becoming even more important. Sadly, Canadian police are not able to provide businesses with the protection that they need against cyber crimes due to a lack of funding and man power. There are so many different types of cyber crime that it can be difficult for officials to decide where to set their focus. It is now in the best interest of businesses to do everything in their power to protect themselves against a cyber attack.

The most common form of cyber attack is espionage, which is commonly performed by attackers who are working on behalf of a competing company. In an online article written by Brian Bloom on February 24, 2012, he highlights the different types of espionage taking place. One of the examples that he provides is about a construction company that had gained remote access to their competitor’s computer. This allowed for them to see what prices they were quoting to customers so that they could under-bid them and obtain more customers.

Brian Bloom also breaks down the costs associated with training officers on cyber crime, which can range from $5,000 to $10,000 for just one course. However, this price does not include the price of the computers that they would need in order to perform cyber investigations, which cost $8,000 to $10,000 each. Once you learn the costs associated with training officers to investigate cyber crime, you can understand why there isn’t more support. With so many other crimes occurring, there isn’t much funding left to aid the fight against cyber attacks.

Having an understanding of the cyber security climate is very important for businesses because it builds their awareness. The unfortunate reality is that they are not fully protected by police officials if they are attacked. As a result, it is imperative that they invest in secure technology in order to protect themselves. Although many companies are aware of the different types of software that is available on the market, they may not be familiar with the protective services that are engineered and supplied by Internet Providers.

The point to point and point to multi-point radios used by TeraGo Networks are able to provide additional security against cyber crime because the signal is direct, unlike broadcast or WiFi. In order to intercept the signal, a person would need to be directly in front of the radio. Even then, proprietary encryption has been employed to all the data being transferred, which makes it difficult to decipher. Additionally, a Link ID, which is a unique serial number, is hard coded into each radio before they leave the warehouse. As a result, the radio can only be relocated by a TeraGo staff member.

 With so many companies using the internet to operate their business, it is vital that they have access to a secure connection. Cyber crime now comes in many forms and is continuing to grow. Since Canadian police departments do not have access to the requirements needed to effectively combat this rising issue, it is up to businesses to protect themselves. By investing in the right protective technology and transferring their sensitive data across a secure network, companies can avoid the possibility of a cyber attack.

To learn more about TeraGo Networks, and to view our current promotions, just click here.

To read Brian Bloom’s article, Cops: ‘Bad Guys’ have edge in Canada Cyber War, click here.

Images provided by Stuart Miles and David Castillo Dominici.

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