How Colocating in a Data Center Can Benefit Your Small Business

/ May 15, 2019 | 5 Mins Read

How Colocating in a Data Center Can Benefit Your Small Business

Data centers aren't just for large enterprises…actually owning one is practically impracticable for many small businesses. Colocation gives tinier businesses the chance to acquire the same benefits as larger firms.

Operating a small business has many facets. If you are running your own business or looking into doing so, there are many things you need to think about for your small business to be successful. Once your company starts to grow, you will need to think about how and where to store your company data.

Should you run your own in-house data center or use a colocation service and facility? Data centers are an integral part of many businesses that have grown too big for an in-house setup. Do you know what’s best for your business?  

1. What are the different types of hosting?  

There are different ways of hosting your company data. The first type of data hosting is In-house hosting. If you haven’t thought about using a data center or a colocation service just yet, you are most likely using your version of in-house hosting. This refers to servers and networking hardware that is owned by your company.

Someone on your company grounds or at a stand-alone data center location controls your in-house data center. One of the downsides of controlling your own data center on your premises can sometimes be the lack of IT help and the latest hardware for your servers.  

A Dedicated Server is another great option if you are looking for some extra help with IT. Buying a dedicated server is a way to get the latest technology, and experienced IT professionals taking care of your data. This may also bring faster load times and a more secure setup since you are not sharing with any other businesses or individuals. Your site visitors may be able to tell the difference with the faster load times.  

Colocation is using a data center and its servers as a shared facility. A colocation provider can store your company’s data and manage it for you alongside other companies and other individual’s data as well. This is a more cost effective option for those looking into using a data center for the first time. 

Managed Hosting is the use of a data center, but the company uses assigned private dedicated servers or cloud servers.  

2. Managing your own In-House data center 

There is a lot that goes into managing your own in-house data. One of the things you or your in-house data center manager will need to do is keep your data clean. Effectively cleaning your data will ensure better performance. There is a belief that up to 70% of data could be out of date after just one year. 

If you continue to reach out to your clients and future clients using the wrong contact information, there is a chance of being blacklisted by email providers. There are also monetary consequences if this isn’t figured out down the line. 

There are ways to ensure you are using the correct contact information. This includes email verification, data validation, de-duplication, and data standardization and normalization. This data should be cleaned out as often as you can. You will need to formulate and execute a cleansing strategy to keep up with this.  

There are many steps in regards to managing your data. As you can tell, this alone can be very time costly. Which is another reason why using a colocation provider could be even more important to help you save time and money.  

3. What are the benefits of using a data center? 

Colocation has many benefits for your business and could be a great decision for many small companies. Some of these benefits include scalability, security, cost, and sustainability. But maybe the most important benefit of all is the cost.  

Every business (especially small businesses) is looking to cut costs and increase their profit margin. One advice often heard is get more focused. Make sure your small business has a specialty. This also goes for data management. If you leave your data management up to the professionals, you can focus and use more of that valuable company time doing what you do best. 

Colocation services can save on costs in many ways. Using a colocation service, your business doesn’t need to spend extra money on hiring a contractor, purchasing an extra space, or making room for it in your current building.

Your business also doesn’t need to spend extra money on added security or power as well. And as your business grows, you may need to expand your data center as well. This can be very expensive, and by using a colocation service there is no need to put more money into expanding the space.  

If you are managing your own in-house data center, security is another thing you need to think about. Not only does it cost more money to have security present at all times, but there are also other details and precautions that need to be dealt with.

Security should be monitoring your facility around the clock and should be ready for inside and outside threats. They should also be ready for emergencies including fire or flooding (depending on how your data center is being cooled). If your security isn’t taking care of all of the above, you might need to hire an around the clock data center manager as well. By using a colocation service, you can rest assured that all of these aspects will be taken care of.  

As your company and business grow, the idea of Scalability is another thing to should be ready for. Colocation services can offer your business the ability to expand and upgrade your system without overhauling your entire setup. Increasing your server capacity could typically mean adding more hardware, but these services can make expanding quick and painless.  

Using a colocation service within a building that was meant specifically for cooling purposes can mean saving on costs due to efficiency. While your current building and space may not be ready for this type of energy consumption and cooling, these services are ready to go with the latest technology.  

Data centers also have the latest and greatest technology to manage your data, which may not be the case when it comes to your own in-house data management system. Some data centers are incorporating artificial intelligent systems to help manage energy efficiency.Having an artificially intelligent managed data can give you many benefits.  

4. Why should your business co-locate? 

The main goal of any business is to steadily grow and increase revenue. Budgeting can play important part of growing your business. With this in mind, co-locating can be very beneficial to small businesses in many ways.

By using a colocation service, your business can focus on what your business does best and you can leave the storing of your data to the professionals. By doing this, you are also focusing more of your time on core activities. 

One of the things that successful entrepreneurs tell new small business owners is to outsource non-core activities. If your expertise isn’t in data management, leave that up to those with the expertise. Always be on the lookout for tips that will make your small business more efficient, and learn from those who have already done so.    

In an NSBA survey showed that out of 800 small business owners, more than 40% of them would take care of their own IT support. The ones that do say that the biggest challenges they face are the cost of upgrades, security issues, maintenance of technology, lack of service expertise, and time to fix the problems. Instead of dealing with all of this, small business owners can take that extra time to develop their business to become more successful.  

Physical security isn’t the only thing small businesses need to worry about—Cybersecurity is another factor that needs to be accounted for. There are many different cyber security threats that your small business can face

Hackers are getting better at what they do, and unless you know exactly how to deal with these threats, your business can be in danger. Most data centers are prepared for all security aspects, both physical and cyber threats.  

Using a colocation service can actually give small business owners more control over the future of their business. Although you may be letting others take control of your data, you are actually ensuring the well being of your business. You are able to spend more time growing your business, and making it even easier to expand when it comes time. You are always guaranteeing the best people in the business safeguarding your important data.  

There are many benefits of using a data center and a colocation provider. Take advantage of these benefits today.  


As a small business owner or potential small business owner, there are many things you are in charge of and little details you need to consider making our business a success. Colocation can take one of those little things off of your plate.

Not only will you be able to focus on the specialty of your business, but you can also rest assured your data is completely secure and taken care of by those who specialize in managing data. The many benefits of co-locating can be very advantageous for your business as well. Help your business thrive by contacting a colocation service provider today. 

Isberto is the Blog Director and Content Writer for Colocation America . He received his B.A. in Communication Studies with an emphasis in Public Relations at CSUSB. Isberto is a Communication professional with additional experience in Public Relations, Marketing, and Social Media.

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