The cost benefits of colocation

Web Written by Rack Alley

The two fastest growing areas of IT services are cloud hosting and colocation. Organizations are starting to see the cost benefits of using third parties for critical IT services. Here are some the areas where you will see significant cost savings:


The average organization spends as much as 30-40% of their revenue on staff costs. These staff costs are more than just the salaries. There are other costs like health insurance, transport, leave, and yearly increments. When you Move to a server hosting Los Angeles provider, you will no longer need 24-hour monitoring, technicians, etc. A single network engineer will look after the entire operation.


The biggest component of costs goes to electricity. Running HVAC units all-day every day is expensive. However, much like the staff costs, there are other hidden costs. All infrastructure associated with a server room require maintenance, regular replacement, and monitoring. When you use Los Angeles colocation, the provider looks after the infrastructure. Also, you can get more for the same amount you pay for existing services like internet connectivity.


When critical data is on the premises, you need an additional level of security. Most organizations do not use much security and only do so for the purpose of protecting the data center. At a third part data center is strict 24-hour security with video camera coverage and patrols. Also, there is physical security for your racks and servers.


Rack Alley is a provider of LA web hosting and colocation services at their data center.