Why are companies moving primary data centers to wholesale colocation facilities like Lifeline Data Centers? Wholesale colocation can be a perfect place build the hub of a wide area network.
Wide area networks can be complex. The hub should have low-cost access to multiple carriers. This benefits companies that must use more than one telecom carrier. Some companies must blend carriers because of the location of their remote offices. Many companies are building in Internet redundancy and wide area network redundancy into their corporate networks . Access to multiple telecom carriers also puts the carriers in a more competitive pricing stance. Carriers know that companies which operate the network hub from wholesale data center have many telecom choices. Internet bandwidth is also competitively priced at outsource data centers.
But an outsource computer room must be a carrier neutral data center to offer the most benefit. That means that multiple carriers are available, and that the outsource data center shows no favoritism. The telecom contract is directly between the company and the telecom carrier. The data center is not involved.
To be the most financial benefit, the data center must have no cross connect fees. Cross connect fees are monthly add-on fees that a data centers charge to allow companies to remain connected to the telecom carriers. Look for outsource data centers that charge no cross connect fees.
Why are companies moving primary data centers to wholesale colocation facilities? Carrier neutral data centers with no cross connect fees give companies the ideal venue to reduce costs and to build diversity into a wide area network.
In Part 10 of this series, we will summarize why companies are moving primary data centers to wholesale colocation facilities.