Server colocation, or how to reduce the costs of running your own server

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We do not need to convince us how important the server is for the company. It is on the server that all company data and documents are located. The server is required to set up a company’s website, e-commerce store or portal. That is why more and more enterprises decide to purchase their own server, tailored to the needs and expectations of the company. However, there is a problem where to put it. Companies that provide the server colocation service come to the rescue. Is it profitable to buy such a service?

What is collocation?

The server colocation service is the purchase or rental of space in a server room belonging to a given hosting company. To purchase such a service, we must have our own server. Then we put it under the care of a given company, which provides us not only with optimal conditions for server operation, but also an Internet connection, power supply and anti-burglary protection.

Collocation – saving or unnecessary expense?

Many people wonder if hoteling is actually saving money or just an extra cost. After all, we have to pay for space rent and electricity. But would own server room be associated with lower costs? Well not necessarily! To see how profitable server colocation is  , it is worth considering all the costs that we would have to incur if we wanted to create our own server room.

  • Place – usually we have to build a separate room for our own server room. Then the costs must include both the price of erecting the building and the purchase price of the land. Remember that the building will contain not only server cabinets, but also rooms for staff.

  • Fire protection  –  extinguishing systems, smoke detection sensors, etc. Costs, depending on the size of the server room, can reach up to 100 or 200 thousand. zlotys.

  • Internet connection – we must remember that retail connections will cost much more than wholesale connections.

  • Data center infrastructure and all installations – electrical installations, transformers, air conditioning, cabling, telecommunication connections, etc. The rack cabinet itself can cost about 6,000. zlotys.

  • Training and employment of employees – for servers to function properly, someone must supervise them and be able to repair them in the event of a failure. Hiring specialized employees or training for those present can cost us a lot. 

  • Annual building and infrastructure maintenance costs – we must remember that these costs may change every year and we are not able to estimate them in advance.

There are also costs that are not directly related to server room equipment. It is mainly about a power outage in our company. It is a random event – completely independent of us. The lack of electricity is associated with a break in the server’s operation. This, in turn, translates into a broken online store. Depending on how long the company has been without electricity, the losses can be huge. And it’s not just about losing orders that might have been made while the server was down. Many customers will perceive a broken website as a sign of our unprofessionalism and will start looking for competitors. The colocation service ensures that the server will not stop working thanks to the backup power sources.

As you can see, the costs of building and maintaining your own server room are considerable and often exceed our financial capabilities. When buying a colocation service, we have fixed fees that are much lower than if you have your own server room. So if you do not want additional investments, it is worth entrusting the care of the server to a proven company.