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What is Server Colocation?

Published 19 Apr 2020

Most organisations run their own IT hardware, from a few servers in an office to full racks in a comms room. Keeping that equipment online takes more than floor space. It needs resilient power, effective cooling, and the right physical security. Building and maintaining those capabilities in-house comes with significant cost.

Colocation offers a different route. By housing servers in a specialist data centre, businesses access enterprise-grade infrastructure without the capital expense. In this blog, we outline what server colocation means, why it is often the more cost-effective option, and how it can support future IT growth. 

Server Colocation Definition

Server colocation is the process of placing your organisation’s IT hardware, like servers, storage, networking, and security appliances inside a professional data centre run by a trusted provider. Instead of managing your own server room, you rent rack space in a purpose-built facility with enterprise-grade power, cooling, security, and connectivity.

What Does Colocation Mean?

It means your business still owns and manages the servers, but the colocation provider supplies the environment they run in.

How Colocation Services Work

Using a data centre removes the need for your business to spend money and resources on housing servers on your own premises. You simply move your existing equipment into pre-built racks, and the data centre looks after the supporting infrastructure.

Colocation Service Levels

Service Level 

Description 

Best For 

Shared rack 

Rent part of a rack for a few servers 

SMEs starting small 

Private rack 

A full rack dedicated to your business 

Growing IT estates 

Secure cage 

Multiple racks in a locked cage 

Enterprises needing segregation 

Private suite 

Dedicated room within the facility 

Large-scale, compliance-driven needs 

How Much Does Server Colocation Cost?

It’s important to understand the factors that can determine your colocation costs. 

The commercial goal of colocation is to avoid the up-front capital expense of building your own hosting facilities. This is done by following an OPEX model of paying the colocation provider only for the hosting space and services you need. 

Our colocation contract terms are flexible. We allow you to rent a space as small as part of a shared rack, up to multiple racks locked in your own secure cage. You can even have a dedicated private room within the facility, depending on your needs. 

The point here is, you only pay for the capacity you use. Billing is monthly, and you don’t need to commit to lengthy contract terms. Furthermore, as your IT needs grow, your data centre footprint can scale accordingly. 

This system saves you from having to pay the up-front costs of expanding your own on-premise server room. 

The Advantages of Server Colocation

  • Frees up your IT resources – engineering staff maintain the facility and respond to issues 24/7. 
  • More cost-effective – shared facilities reduce costs through economies of scale. 
  • All the infrastructure is provided – building, power, cooling, generators, CCTV, maintenance, and backup. 
  • More reliable – redundancy ensures uptime and business continuity. 

 

Colocation vs Other Hosting Models 

Feature 

Colocation 

Managed Hosting 

Cloud 

Hardware ownership 

You own & manage 

Provider owns & manages 

Provider owns & manages 

Control 

Full control 

Limited (outsourced) 

Limited (abstracted) 

Scalability 

Expand physical space 

Fixed by provider 

On-demand 

Cost model 

OPEX: rack space + power 

OPEX + service fees 

Pay-per-use 

Best for 

Control + resilience 

Businesses outsourcing ops 

Elastic workloads 

 

How Safe is Server Colocation?

The ISO 27001 accreditation for IT security management covers all of our data centres. Each one is designed from the ground up to be reliable. 

As part of our server colocation package, you can expect: 

  • Multiple redundant cooling systems 
  • Multiple power feeds 
  • High-capacity UPS systems 
  • On-site diesel generators 
  • Steel perimeter fencing 
  • Internal and external CCTV 
  • Diverse network connections 

Because we own and manage the entire environment that houses your servers, it provides us with clear visibility of any issue affecting your colocated servers and vastly increases the speed of diagnosis. 

Where Can I Colocate My Servers to ?


One of the potential downsides to the colocation approach is that it can mean long travel times if your engineers need to physically access your hardware. 

To mitigate this, we own and manage a range of data centres across the country, with excellent transport links. 

All of our data centres are constructed to enterprise-class specification, allowing you to choose a facility that is geographically convenient for you. 

We also offer a ‘remote hands’ service, where our engineers act on your behalf in carrying out essential maintenance, repairs, or upgrades to your colocated equipment. That means, in many cases, you can avoid sending your own engineers entirely. 

You still own the servers, and you are responsible for setting up and configuring them. Your own engineers will have access to them 24/7 if required. 

How to Get Started with Server Colocation

Pulsant operates one of the UK’s most comprehensive colocation networks, with 14 interconnected data centres, ISO 27001 certification, and 24/7 expert support. Whether you need part of a rack or a private suite, we’ll find the right solution for your business. 

Contact our team today

 

 

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