7 Benefits of Leveraging Colocation in Your Enterprise IT Strategy in 2020

Jan 22, 2020

By 2025, 80% of enterprises will shut down their traditional data centers according to Gartner. “That staggering DSC_6500.JPGnumber is driven by the aggressive adoption of hybrid and multi-cloud strategies, and the reality that the private data centers built just a decade ago require very costly ongoing maintenance and upgrades to bring them up to modern-day standards,” explains Scott Arnett, President of Arnett Group, an IT consulting firm and 365 Data Centers’ partner that works with enterprises to define strategy with IT requirements and technology to support those goals.

The increasingly data-centric nature of business is challenging enterprises both large and small to rethink how they approach their IT strategy. Colocation has become a critical component of how they are re-tooling their infrastructure - and here’s why.

Cost Savings

Colocation offers the infrastructure of a dedicated data center without the costs of maintaining, upgrading and staffing a private facility. Colocation facilities are able to take advantage of economies of scale with expenses such as power and cooling, and pass that savings on to their tenants. “From disaster recovery to security, business continuity, and backup and recovery, colocation offers access to a variety of state-of-the-art managed services to optimize the enterprise IT infrastructure, resulting in even more cost savings,” says Arnett.

Reliability and Uptime

In a 2019 Statista survey, 25% of respondents worldwide reported the average hourly downtime cost of their servers as being between $300,000 - $400,000, and it can be significantly more depending on the industry. To ensure reliability, colocation providers have the systems, processes and staff in place to deliver 100% availability year after year and provide uptime SLAs (Service Level Agreements) to back it up.  

Hybrid Cloud Solutions

It’s no longer a question of whether an enterprise is using the cloud, but how? With colocation, companies enjoy the benefits of having their servers in the public and private cloud, while still maintaining physical control of their systems.


“Protecting data is vital and colocation facilities have advanced security protocols in place for the physical infrastructure, as well as cyber security protocols utilizing next-generation firewalls to create the utmost security,” explains Arnett. In addition, enterprises can opt for Backup-as-a-Service (BaaS) for resilience and redundancy, so a duplicate copy of data can be retrieved in the event of a security breach.

Flexibility & Scalability

The rapid increase in data creation and consumption has left many enterprises unsure of their future capacity requirements. “The IT leaders of these enterprises seek colocation as a scalable solution with flexible contract terms that allow them to grow quickly when the need arises, says Arnett.”

IoT and the Edge

Colocation in an edge data center allows enterprises to place and manage data closer to their cloud, network and security functions with quick, scalable capacity, all while reducing latency for the end user - a crucial component for Internet of Things (IoT).

24/7 IT Support

Increased complexity of IT environments requires expert help. The colocation staff essentially acts as an extension of the enterprise’s IT team, available 24/7 to troubleshoot and assist with any issues at a moment’s notice remotely and onsite.

Next Steps to Integrate Colocation into Your IT Strategy

With over ten years of continuous uptime across our data centers, you can rest assured that 365 Data Centers is laser focused on delivering reliable and secure colocation services no matter what happens. We have 24/7/365 monitoring and meet the data retention and security requirements to achieve compliance with HIPAA, PCI DSS, SOC 2, SSAE 18 and ISAE 3404. We are so confident in our systems that we offer a 100% power SLA guarantee.

Many enterprise leaders turn to the experts like the Arnett Group to help them develop a new IT strategy and seamlessly migrate on premise, a new colocation or to the cloud. The Arnett Group’s professional data center relocation services can help with the planning, moving and delivery of your equipment to its new location at one of 365 Data Centers’ 11 facilities – and most importantly – the technical support to ensure the systems are ready to go back into operation.

Are you ready to take the next steps? Click here to contact your 365 Data Centers team today.