The term “cloud” refers to the servers and other equipment from many different companies that are ‘co-located’ in one data center. Typically, a data center provides the building, cooling, power, bandwidth, and physical security. The hardware is usually owned by the individual companies themselves and simply housed (and sometimes maintained) by the data center staff.

It also refers to the concept that a company can have their equipment located in multiple places. They may have servers, for example, in three or four different data centers. This is important for companies that have large geographic footprints and want to ensure their computer systems are located near their physical offices.

For companies, or even individuals, who want to use colocation data center services, there are many great benefits to enjoy. The following are some of the most significant to be aware of when deciding if this type of service is a good option.

Lower Costs – When comparing the costs of a colocation data center with the option of building your facility, the choice is obvious. Unless your equipment requires a huge amount of room, costs are far lower when using the colocation option.

Fewer Technical Staff – You don’t need to worry about things like running cables, managing power, installing equipment, or any other technical processes. In many cases, the colocation data center will even be able to replace components or perform other tasks as needed. This means you don’t need to employ a large IT staff to handle this work.

Exceptional Reliability – Colocation data centers are typically built with the highest specifications for redundancy. This includes backup power generators, excellent physical security, multiple network connections through several telcos, and much more. You can even choose the location of your data center so that it is near your users.

Predictable Expenses – The costs associated with a colocation data center will be very predictable. You can often sign contracts that last one or more years, so you can know exactly how to budget your IT needs. When your business is growing, new servers or other equipment can be quickly and easily added to the facility. When your equipment is in a small local data center or server closet it can be much more difficult to expand.

Disaster Recovery is restoring systems to a given point when the systems were functioning within an acceptable loss of data or functionality.

A Disaster Recovery plan is essential for any company that would be negatively impacted if it could not open its doors for an extended period.

To quantify this, consider the economic impact an hour of downtime can have on your business. How much revenue will your company lose if your clients cannot get to your mission-critical systems?