Does Your Business Need a Colocation Service?

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As your company grows, keeping up with the amount of servers necessary to upkeep the business’ data can be expensive. That’s where a colocation service comes in handy. A colocation service will allow you to scale up your business while automating the security and technical support necessary with data servers. 

Whether or not you choose to invest in a colocation service depends on many factors. However, assuming your business continues to grow, there will come a time you will need to expand your data infructues. A colocation service is just one way to do so.  

Does Your Business Need a Colocation Service?

What is a Colocation Service 

Before businesses went digital, companies would generally expand their space by building upon the storefront or opening another location, allowing them to accept more customers and therefore earn more profits.

A colocation service is essentially a way for businesses to expand within the online sphere. Although you can very well start a business from a single computer or a small office, your office servers will likely no longer be able to handle the data necessary to upkeep your business as it grows. 

This would mean if you can’t afford to rent out more space for servers, your business will be forced to stay small or experience downtimes and lags as you try to upkeep the growing information. 

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A colocation service offers an affordable alternative to renting out more office space. It allows you to rent a space, whether it be a cabinet or room, in a shared data server facility. On top of being able to grow your server collection and therefore your business, a colocation service will generally have cooling infrastructure, higher bandwidth and an onsite technical team to avoid digital downtime, and a security system to ensure your information remains safe. 

Benefits of a Colocation Service 

Cost Efficient 

One of the main benefits to a colocation service is that it is a far more affordable option for storing data than a cloud service or renting out extra space on your own with cooling infrastructure, security and extensive bandwidth. 

Since colocation services rent out space in their facility to multiple businesses looking to store their data servers, the cost of rent is split, almost as if your data had roommates. On top of splitting the cost of rent, colocation services are generally built to be energy efficient, meaning storing your data in a colocation service rather than your office should reduce your energy consumption, thereby saving you money.  


Although not all colocation services are as flexible, they usually offer scalability at a more accessible price. You may be looking into a colocation service in the first place because your business is expanding. And if all goes well, your business should keep growing, in which case you will need a data service that offers scalability. 

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Since colocation services generally have massive facilities, adding additional data serve shelves to your collection is simple, and generally not too expensive, especially in comparison to trying to expand your data servers on a cloud or in an office space. 


Even if your business is still small, security should be a prime concern. Just as you wouldn’t give just anyone the key to your office or the password to your computer, your data should be well guarded at all times, since one slip up can ruin your company’s reputation permanently. 

Different colocation centers have various degrees of security available ranging from security guards and security cameras to the most extreme having armed guards and perimeter fences. 

No matter the size of your business, your data should have some form of 24/7 security and seeing as colocation services offer security for all of the businesses renting the facility at one time, the cost of security is split and reduced, especially in comparison to the cost of hiring your own private security. 


Although bosses take on many tasks within a business, there comes a time when expanding your business will depend on your ability to pass off and automate tasks, so you can focus on what’s truly important. Colocation services generally offer varying degrees of automation such as IT technical staff and customer support. 

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With your data in a colocation service, small everyday technical issues that could usually result in a few hours of website downtime, can often be fixed without you even needing to know about it.

Once again, since a colocation service can hire one IT staff to handle all of the potential technical issues in their facility, you and the businesses sharing the colocation facility’s services will essentially be splitting the cost of the IT staff, saving everyone involved money. With everyday technical issues being taken care of, you can focus your energy on the core of your company, allowing you to be more productive and expand your business with less stress. 


Overall, a colocation service is an excellent option for growing businesses looking to expand their data infrastructures without the expensive and tiring upkeep required to do so. Although a colocation service is not a necessary investment and it really comes down to personal choice, renting space in a colocation facility is an accessible way for businesses to scale up. The cost of security, IT staff, cooling infrastures and bandwidth will be shared amongst all of the businesses renting space. 

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