Bosgoed Business Projects

Many companies, even those companies whose core business is website hosting or telecommunications outsource their data centre to a colocation provider. A data center is just a room, or many a whole building in the case of typical London colocation providers, that house a company’s servers and other related equipment in a room with strict environmental controls, tight security, and back-ups for all the systems.

Why would a company that say, provides website hosting, outsource their data centre to a London colocation provider? There are several benefits to using colocation as opposed to an in-house data centre. First, a data center requires large capital outlays, something many companies wish to avoid. Not only does expensive equipment have to be purchased, personnel have to be retained to monitor this equipment as well as perform necessary repairs.

Second, colocation allows a company to expand and upgrade easily with far less expense. A new promotion or pricing plan from a company may bring a sudden surge in new customers to their website hosting business. With a London colocation, a new server an be added to the rank with one phone call, assuring all these new customers are happy with the website hosting service and remain as a steady stream of revenue. Imagine if a new server had to be added to a company’s in-house data center? If it wasn’t purchased and installed in time, service could suffer and the end users would experience delays.