Processor.com: Colocation Providers


Getting it right the first time is crucial when selecting a colocation provider, says Darin Stahl, Info-Tech Research Group lead analyst. “When you get into a colocation, switching costs are enormous,” he says. “This isn’t like buying a bunch of photocopiers, being unhappy with them, and putting them to the curb and getting new [copiers] in. It’s a big deal to go through switching.” To find a good fit with a collocation provider, consider the following.

Understand The Options

Stahl says the colocation/managed service providers market can be categorized into three tiers. Tier one vendors typically have significant market influence and enormous geographic scale, he says. Tier two vendors generally have the same qualifications but less market influence and possibly less geographic scale. Tier three vendors are basically everyone else, he says.

Although price is a factor when comparing providers, it shouldn’t be the driving factor. Smaller colocation providers that compete on price and don’t own their facility typically can't offer an iron-clad SLA around the actual facility, Stahl says.

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