Choosing a Hosting Option: Colocation

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There are many hosting options out there, but every company has their own needs when it comes to data center solutions. Therefore, it's important for businesses to examine their individual requirements before choosing the right provider. To maximize IT returns on investments, companies should perform a cost-benefit analysis to determine the total expected benefits. Many small- to mid-sized businesses will find that the following three things make colocation worth the investment.  

Cost Savings

With IT budgets shrinking and data continuing to grow, the need for cost-effective alternative storage solutions is more obvious than ever. Utilizing colocation services allows companies to cut back on high operation overhead which is a practical way to address budgetary issues. The cost savings also include sharing bandwidth and managed IT services. With so many opportunities to save money, colocation hosting is one way for businesses to meet the increasingly difficult demands of dwindling IT budgets.

Risk Reduction

Colocation involves placing your server machine in a hosting provider's rack or renting a server machine from the provider in an off-site location. There are many benefits to using off-site storage facilities, including online backup and storage replication for disaster recovery and business continuity purposes. With colocation hosting, if an interruption should occur for any reason, critical data always remains available. And, companies that are able to maintain their regular business operations in the wake of a disaster experience a lesser impact on their reputations and ultimately their bottom lines. For example, if a major power outage occurs, the protection offered by colocation facilities protects critical data from being lost and websites will remain up and running; this prevents the company from losing face, as well as losing business.

Staffing Flexibility

Managed IT services allow companies to reduce their overhead and focus their efforts on business development plans instead of server machines and their potential problems. Businesses that are looking for more flexible staffing solutions, without the consequences of a reduction in force, should consider colocation to fulfill their needs. A team of experts dedicated to managing the company's Web server delivers much-needed peace of mind to the business owners who choose this solution.
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