Right Time for Colocation

Dave Breith, CEO at O-bit Telecom says demand for colocation solutions is growing not least on the back applications being offered in the cloud.

At the moment, there is a growing demand from businesses for stable and reliable colocation solutions. The need for collocation space is increasing because many businesses are offering their services via the Internet. Whether this is a simple e-commerce website or a more complex cloud-based service, these companies need a reliable colocation solution to keep their business running. For many resellers, this presents a golden opportunity, especially as colocation is inherently a great service to be able to offer. Compared to traditional telephony products, it offers regular income for minimal effort. As it is also a zero-couch solution, it reduces hassle for the reseller and allows them to concentrate on maximising revenue. It also offers great opportunities to bolt on additional services, such as VoIP connectivity.

Although colocation can broaden a reseller's portfolio and offer an additional value-add service, this will only happen if the colocation service is of a high quality. From the location of the facility to the quality of the equipment and support being offered, it is important to realise that not all colocation services are the same. There are a couple of points to consider when looking at potential data centre partners to ensure that you can take full advantage of the opportunities that colocation offers.

Location and access: Look for a purpose-built data centre facility as opposed to an older converted building, as this will ensure that it has the infrastructure and space to cope with increases in demand and advances in technology. If possible, facilities outside of London should be chosen over those inside the M25, as they offer much better value for money, allowing reseUers to offer a cost-effective solution. It is also essential to look for a facility that allows 24/7/365 access to the servers, so that the end-user is able to resolve problems no matter what time of day.

Facilities: If a server loses access to power or the data connection, then it is rendered useless. If the data centre is unable to cool the server effectively, then it could be irreparably damaged. Resellers need to look for data centre facilities that have state-of-the-art air conditioning, UPS and generators to minimise the risk of downtime. A colocation provider should have the facilities in place to be able to provide a 100 per cent uptime service level agreement (SLA) for power and cooling, and a 99.99 per cent network uptime SLA. Resellers should also look for data centre facilities that take advantage of power efficient equipment, as this means a reduced carbon footprint, which is a very important issue for many end-users at the moment.

Flexibility and support: There is much more to colocation than simply connecting a rack to the Internet and supplying it with power and keeping it cool. There is no one-size-fits·all solution, and customers want a provider who can supply them with a bespoke solution. Customers' needs can vary from the amount of rack space they require to the levels of bandwidth they need to the amount of technical support they want. For the reseHer, it is easier to find a colocation provider with enough rack space to cope with additional customer demands, as this means that they won't have to deal with multiple data centre providers in order to meet end-user needs. Resellers who are able to find a colocation provider who can offer these levels of flexibility will be able to supply a solution that appeals to a wide range of people.

Colocation presents a great opportunity to resellers, and the number of businesses interested in taking advantage of this service is only going to increase as they become even more reliant on their IT systems. It can also provide valuable long-term income for resellers, as customers are tied into a contract, whilst also providing resellers with regular opportunities to 'cross-sell' additional products and services linked to the colocation space. However, resellers need to ensure that they are offering the right product. They need to find a colocation provider that is able to provide technical support for those customers that need it, and won't leave the reseller with the blame should anything go wrong. With the right provider, colocation presents resellers with a fantastic opportunity.

- Comms Business, June 2010