3 Ways Colocation Services Can Benefit Your Growing Business

Colocation services help businesses scale IT resources without the costs and operational hassles of managing an in-house data center.

As businesses grow, so does their need for effective IT infrastructure. Colocation services offer a strategic way for growing businesses to enhance their IT capabilities without the overhead of maintaining an in-house data center. In this blog, we’ll explore the biggest benefits of data center colocation for growing businesses and what makes them an essential part of scalable IT infrastructure management.

What Are Colocation Services?

Expanding IT infrastructure is a significant challenge for growing businesses, especially given the cost and complexity of building and managing an in-house data center. Colocation services provide space in a third-party data center built specifically to host network infrastructure which allows businesses to scale their IT resources without the capital expenditures and operational hassles of managing their own data centers.

With so many emerging technologies transforming the way we work, having an agile and flexible IT infrastructure is more important now than ever before. A 2024 survey found that over 75% of organizations are considering moving AI-related workloads to colocation data centers.1 These facilities not only support essential functions but also help businesses stay competitive by meeting their digital transformation goals. 

Over 75% of organizations are considering moving AI-related workloads to colocation data centers.

Top 3 Benefits of Colocation Services for Growing Businesses

Colocation data centers don’t just provide space; they empower organizations to keep up with today’s rapidly evolving digital marketplace. Let’s explore the key advantages data center colocation can offer your business:

1. Scalable IT Infrastructure

Colocation services offer flexibility and scalability, making them ideal for businesses that need to grow. By moving your critical IT infrastructure to a colocation data center, your company can benefit from:

  • Customizable Setups: Colocation gives you the flexibility to modify your IT setup as needed. You can add servers, expand storage, or enhance network capabilities quickly, allowing for precise control over your infrastructure to ensure it always aligns with your business objectives.
  • Redundancy and Reliability: Colocation data centers provide redundancy and reliability with multiple power sources, backup generators, and redundant network connections. These measures keep your IT infrastructure operational even in the event of a failure.
  • Global Expansion: Colocation services can facilitate your expansion into new markets by providing IT resources in different geographical locations. This global reach can be crucial for maintaining fast and reliable service as your business grows internationally. 
The cost of global cybercrime is expected to grow by 15% per year through 2026.

2. Enterprise-Grade Security

With the cost of global cybercrime predicted to grow by 15% per year through 2026,2 prioritizing security is crucial. Colocation services provide comprehensive protection for your IT assets, with features such as:

  • Physical Security: Colocation data centers employ advanced physical security measures, including biometric access controls, surveillance cameras, and on-site security staff. These security protocols enable colocation facilities to serve as a fortress for your critical IT assets.
  • Cybersecurity: In addition to physical security, colocation providers can also enhance your cybersecurity with firewalls, intrusion detection systems, and frequent security audits. These measures safeguard your data from digital threats, while continuous updates and professional oversight ensure these solutions remain effective against evolving threats.
  • Disaster Recovery: Placing your IT infrastructure in a secure, off-site location helps protect your data and systems against physical disasters, ensuring quick recovery and business continuity. Plus, the strategic location of colocation facilities minimizes the risk of natural disasters impacting both the primary and backup sites.
  • Compliance: For businesses in regulated industries, colocation centers maintain a secure and compliant environment essential for adhering to stringent data protection and security regulations. This compliance support extends beyond physical security to include data handling and storage practices, making it easier for businesses to meet industry standards.
Colocation services can enhance your cybersecurity posture with firewalls, intrusion detection systems, security audits, and more.

3. Cost-Effective Infrastructure Management

Keeping costs down is always a concern for growing businesses, and colocation services provide an affordable way to manage your IT infrastructure. Here’s how:

  • Predictable Costs: Data center colocation comes with clear, subscription-based pricing to help you budget effectively and avoid unexpected costs. This financial predictability is essential for long-term planning and investment.
  • Lower Overhead: Outsourcing your data center operations reduces the expenses associated with energy, cooling, and staffing, potentially saving a significant amount over time. 
  • Energy Efficiency: Colocation data centers are designed to be energy-efficient, with advanced cooling systems and energy management practices that reduce power consumption. This not only lowers operational costs but also supports sustainability initiatives by reducing your carbon footprint.
  • Capital Savings: Since colocation moves your IT infrastructure to the cloud, you can save on the capital expenses typically required to build and maintain in-house data center facilities and redirect these funds toward other strategic investments. 

Partner With Netlink Voice for Scalable Colocation Services

Colocation services provide growing businesses with the necessary infrastructure to scale quickly and efficiently – all while managing costs and enhancing security. However, not all colocation providers are equal, and finding the right fit for your company’s specific needs is a must for ensuring long-term growth and success.

At Netlink Voice, we understand that you’re not a data center expert – and when you partner with us for colocation services, you don’t have to be. Our national colocation footprint makes us uniquely positioned to meet your data center needs anywhere in the U.S. Plus, our responsive support and Tier 1 facilities ensure your data is secure, connected, and monitored around the clock.

Ready to focus on growing your business while the experts handle the complexities of data center management? Contact the Netlink Voice team today to get started.