Capital allocation
Building a data centre is capital-intensive. It consumes a lot of up-front cash whose benefit is slowly realized over a long time. Running your services from a colocation data centre means not investing capital to build a data centre – the colocation operator does all of that.
There are no Balance Sheet implications. You don’t have to raise either equity or debt. You can use your capital for more productive purposes.
Staffing your operations
You don’t have the costs of support or maintenance staff when you place dedicated servers or telecoms equipment in a colocation data centre. Nor all the time, effort and risk involved in recruiting, allocating, motivating and retaining the people.
You benefit from the shared expertise of staff who do this all day long and from a high level of resources pooled with others - without incurring the costs.
No nasty surprises with colocation
Your costs are fixed at the outset for as long or as short a time as you agree with the colocation operator. You have a constant cash flow and don’t have to worry about finding money for nasty surprise cash peaks.
In control in colocation
You are in control of your hosted server or telecoms equipment at all times. You don’t have to rely on others buying and configuring for you and be subject to their priorities, not your own.
You use your hosted server or telecoms equipment, working the way you want it to work and the colocation data centre keeps it safe, secure and running.
Managing cost and reducing cost
You can spend all the capital you can raise on growing your business.
Your costs are fixed, constant and predictable. You can meet your budgets and financial targets more easily.
You benefit from the efficiencies and economies of scale of the colocation data centre.
You won’t experience nasty operational financial surprises.
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