Calculating the Cost of Colocation
Similar to the dedicated server environment, colocation is a solution for those who require more control over server administration. This service involves an offsite company that houses your server and enables it to make an internet connection. Some will offer servers for a fee or even build a custom machine just for you. This type of hosting distinguishes itself from the dedicated environment as all of the network equipment is owned by you opposed to the web hosting company.
Dedicated hosting gets costly but a colocation setup is typically more expensive. Before making upgrades to your hosting environment, you might want to consider what’s involved to determine if it’s the right move. The cost of a colocation service can be associated with two categories: connection fees and rental fees.
Connection Fees: Conventional hosts generally measure the total amount of gigabytes transferred on a monthly basis. With colocation hosting, the amount of bandwidth used per month is usually divided by the total number of seconds in that particular month to determine a figure. An increasingly used method is known as the “95 percentile”, a system in which bandwidth is measured every five minutes. At the end of each month, the user is billed at the highest remaining percent while the top 5% of bandwidth measurements are discarded.
Rental Fees: These costs are associated with the service of storing your servers and other network equipment at the provider’s data facility. Prices range from 1U’s to full racks, which describes the measurements of the servers being stored. Most servers today come in one 1U or 2U sizes. Larger servers or those with multiple hard drives range from 3U to 4U.
Along with the primary fees come all the components that make up of the cost of your base service. Some of these fees are based on the following:
The Facility - When it comes to the facility that houses your equipment, price shouldn’t be the only issue. You want to make sure the company’s data center is physically protected against theft and natural disasters with redundant systems to ensure the functionality of your business. It is also important to know where the center is located as most providers give you physical access to your equipment.
Bandwidth – This is one resource you never want to run out of. Higher bandwidth will probably cost you a little more but it could be well worth it. Different internet connections make for different types of bandwidth. You should certainly confer with the web host to determine what’s suitable for your business.
Support Options – One of the most critical aspects of any kind of web hosting, your colocation plan should come with solid support. You need to know that the individuals maintaining your equipment are both knowledgeable and supportive.
Cross-connection fees - This is a rare feature that you might encounter. Cross-connection fees are applied when you physically house your server with one provider and allow another host to provide the internet connection.
Uptime guarantees – Any reliable colocation provider should openly publish their uptime guarantee. This ensures the overall performance of your operation and is essentially something that can make or break your business.
