Changing the Rules: Flexible Colocation Models

Changing the Rules: Flexible Colocation Models

We all know that Infrastructure as a Service (IaaS) or Software as a Service (SaaS) allows us to pay only what we use. It allows us to parallel our costs with our actual usage. While traditionally only found in IaaS or SaaS environments, that model is now making its way to colocation providers. But does this align with your current colocation contract?

Previously, colocation was a fairly standard contract for 36 months or longer. It included space, allocated power circuits and a burstable bandwidth subscription. Downsizing the environment for a short period meant you paid the same amount, but just used fewer resources. Short-term agreements meant 12 months, no ifs, ands, or buts. You paid for the allocated space and power regardless of how much you were actually using. Internet bandwidth had a base amount you would select. Use it or lose it.

Progression within the data center business have come a long way. Much like cloud technology, companies are increasingly coming up with Consumable Colocation Model options, designed to help customers lower costs and be more efficient in their use of resources.

The positive impact of the Flexible Colocation Model for you as Customer:

Flexibility

Flexible colocation model (Colocation as a Subscription) allows you as a company to plan resources and predict revenue. If your company or your client wants to change the focus of the project? Or like to migrate a part of the infrastructure to the Cloud? No problem — nothing is “out of scope” because there is no scope. Colocation subscription allows you to be flexible in your tactics without having inconsistent service due to recalculating costs. It gives your company the ability to provide different types of services, not just deliverables.

This is also a benefit to your clients, as they always know that resources (whatever they may need) will be available to them as their needs change. It gives the option to change their objectives on the spot and adjust the game plan month over month.

Data Center suppliers are, due to the flexible terms, forced to always achieve maximum customer satisfaction, after all the customer is free to go if the service does not like it. Flexibility and freedom are the basis of contemporary as-a-service models.

Ability to Scale

If the need of your IT environment or your client environment changes dramatically, a flexible colocation model will give the ability to scale power allocation and cabinet positions up or down, without worrying about contracts. For instance, if you are running media projects and you need suddenly need more capacity, you have the ability to scale up the capacity and scale down the environment after the project.

Back-to-back cost calculation

When you deliver subscription-based services to your client, your business does not want to risk having costs that are not paid by your customer. The best prices and lowest risk are only possible if the full chain of products is delivered within the same pricing model. Lowering your risk and improving the cost price calculation.

If you’re considering colocation today, make sure you evaluate how each provider can help you in the areas of Cloud Connectivity and Flexible Colocation Contract. A real comparison of Data Center providers should reveal those that are committed to helping align with their customers’ business objectives.

Flexible colocation

Datacenter.com introduced StartDirect Colocation, a pure Colo-as-a-Service offering which helps to scale up (and down if needed) your business.

More information about the services which Datacenter.com you can offer? Contact our team or book a tour.

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