Colocation Security: Facilities, Services, Meaning

Colocation Services: Why Use Them?

Colocation services provide businesses with the space, power, cooling and security required to host their IT equipment in a data center. Colo security providers offer a wide range of services tailored to the requirements of organizations of all sizes, from small businesses that may need only a few server racks to large enterprises that require entire data halls.

With cybersecurity as important as ever, it pays to work with information technology experts who can help store and manage your data. Specialized third-party service providers know how to do exactly that, no matter your company’s size or industry.

Let’s talk in more detail about what colocation security is, as well as its benefits.

One aisle of a colocation security data center. It's dark with blue-green lights reflecting off the floor.

8 Benefits of Colocation Data Center

  1. Improved uptime and reliability: To ensure that your data is always available, colocation data centers have implemented security measures against physical threats, as well as redundant power and cooling systems. This can result in improved uptime for your IT infrastructure.
  2. Reduced costs: Colo services are also a great way to lower costs as it’s much more affordable than building and maintaining your own data center. Colocation providers have economies of scale that you can benefit from.
  3. Improved security: Colocation providers have a strong focus on security, with strict physical and environmental security measures in place, protecting your most sensitive data from unauthorized access, theft or damage.
  4. Enhanced performance: You’ll also tap into high-speed networks and other resources that can improve the performance of your IT systems. This can be important for businesses that need to process large amounts of data or that need to provide high-availability services.
  5. Greater flexibility: Scale your IT infrastructure up or down as needed, so you can easily accommodate changes in your business. Businesses that are growing rapidly or that are facing seasonal fluctuations in demand will find this especially helpful.
  6. Improved compliance: Experienced providers often have experience working with businesses in regulated industries, and they can help you to meet your compliance requirements.
  7. Access to expertise: Each provider’s experts can help you to manage your IT infrastructure. This can free up your internal IT staff to focus on more important projects, such as developing new products or services.
  8. Peace of mind: Knowing that your data is safe and secure in a colocation data center can set your mind at ease. That way, you can focus on running your business without worrying about your IT infrastructure and sensitive data.

Colo Security Use Cases

Disaster Recovery

By colocating your IT equipment in a colocation facility, you can ensure that your data and applications are always available, even in the event of a disaster. Colocation facilities have redundant power and cooling systems, as well as security measures in place to protect against physical threats. This can help to ensure that your data is always available, even if your primary data center is unavailable.


Many industries, such as financial services and healthcare, are subject to strict compliance regulations. By colocating your IT equipment in a colocation facility, you can ensure that your data is being stored and managed in accordance with these regulations.

Colocation providers often have experience working with businesses in regulated industries, and they can help you to meet compliance requirements.

Data Protection

Colocation can help you to protect your data from unauthorized access, theft or damage. Colocation facilities have strict physical and environmental security measures in place, such as 24/7 security guards, video surveillance and fire suppression systems.

READ MORE: Platform Modernization: App, Software Upgrade

Where are Colocation Facilities?

Colocation facilities are located all over the world, in major cities and data center hubs. Some of the most popular locations for colocation facilities include:

  • North America: The United States and Canada are home to some of the largest and most reliable colocation facilities in the world. Major cities in North America with a high concentration of colocation facilities include:
    • New York City
    • Chicago
    • Los Angeles
    • Dallas
    • Toronto
    • Ashburn
  • Europe: Europe is another major market for colocation facilities. Major cities in Europe with a high concentration of colocation facilities include:
    • London
    • Frankfurt
    • Paris
    • Amsterdam
    • Dublin
  • Asia: Asia is a rapidly growing market for colocation facilities. Major cities in Asia with a high concentration of colocation facilities include:
    • Beijing
    • Shanghai
    • Hong Kong
    • Singapore
    • Tokyo

When choosing a colocation facility, it is important to consider the following factors:

  • Location: The location of the colocation facility is important for both performance and security. You want to choose a facility that is located in a low-risk area with access to high-speed networks.
  • Security: The security of the colocation facility is critical. You want to choose a facility that has strong physical and environmental security measures in place.
  • Uptime: The uptime of the colocation facility is important for your business. You want to choose a facility that has a high uptime guarantee.
  • Cost: The cost of colocation can vary depending on the size of your equipment, the level of services you need and the location of the facility. You want to choose a facility that fits your budget.

ALSO SEE: How To Choose Your Tech Stack

What is the Difference Between Cloud and Colocation?

Cloud computing and colocation are both viable options for hosting your IT infrastructure. Cloud computing can offer scalability, cost-effectiveness, and reliability, while colocation can offer more control, dedicated environments and high availability.

Ownership and Control

With cloud computing, you don’t own the physical hardware or infrastructure that runs your applications. Instead, you rely on the cloud provider to manage and maintain the underlying technology.

With colocation, on the other hand, you own and control the servers and other hardware that run your applications. This can give you more control and flexibility over your IT environment, but also requires more management and maintenance from your team.


While both cloud and colocation can be scalable, the process is different. With cloud computing, you can easily add or remove resources as needed by adjusting your subscription or service plan with the provider. With colocation, you need to physically add or remove servers and equipment as needed, which can take more time and resources.

READ MORE: What is Technical Debt in Due Diligence?


While cloud computing can be more cost-effective than traditional on-premises infrastructure, it’s important to note that costs can vary widely depending on your usage, the services you choose and the provider you use.

With colocation, you pay for the space and power your equipment uses, as well as any additional services like security or maintenance. Over time, the costs of colocation can add up, especially if you need to invest in additional hardware or infrastructure.

Security and Compliance

Both cloud and colocation providers offer high levels of security and compliance, but the responsibility for maintaining that security is different. With cloud computing, the provider is responsible for securing the underlying infrastructure, while you are responsible for securing your applications and data.

With colo security, you are responsible for both the hardware and the applications, which can give you more control, but also requires more resources.

Ultimately, the choice between cloud and colocation will depend on your business’s specific situation. A dedicated third-party resource can be a valuable asset as you consider the pros and cons of each.

What are the Different Types of Colocation?

Retail Colocation

This is the most common type of colocation, where a company rents space in a data center to house its own servers and equipment. The organization is responsible for the hardware, software and security of its systems.

Wholesale Colocation

A company leases an entire data center or a portion of a data center. The company is responsible for the hardware, software and security of its systems.

Hybrid Colocation

This is a combination of retail and wholesale colocation. The company leases space in a data center to house its own servers and equipment, but the colocation provider also provides some of the services, such as power, cooling and security.

Managed Colocation

The colocation provider also manages the customer’s servers and equipment. This can be a good option for businesses that do not have the resources or expertise to manage their own IT infrastructure.

Carrier-Neutral Colocation

This type of colocation facility offers connections to multiple telecommunications providers, making it ideal for businesses that require high levels of network connectivity and redundancy.

Edge Colocation

This type brings the data center closer to end-users by placing it in smaller, more distributed locations. This can improve latency and reduce network congestion for applications that require real-time processing.

Containerized Colocation

IT equipment is placed in shipping containers that can be transported easily and deployed quickly in different locations. This can be useful for businesses with dynamic infrastructure requirements, such as those in the events or construction industries.

READ MORE: Business Intelligence & Analytics: What is it?

Colo Rack: What is it?

A colo rack is a specialized cabinet or enclosure designed to house servers and other IT equipment within a colocation facility.

Typically, colo racks are either 42U or 47U in height and come in either an open-frame or enclosed design. While open-frame racks are more affordable, enclosed racks provide a more secure environment for IT equipment.

Colocation racks often come with additional features such as power distribution units (PDUs), cable management systems and security features such as locks and security cameras.

When choosing a colocation facility, it’s essential to select a colo rack that meets your specific situation. Your choice depends on your IT equipment’s size, your budget and your security requirements.

Larger colo racks are more expensive but can provide more space for your equipment. On the other hand, smaller racks may be a better fit for smaller businesses with less equipment or lower budgets. Additionally, you must consider security features to protect your IT equipment from unauthorized access.

The invite-only Business Builders’ Network is full of IT professionals who specialize in colocation services.

Our latest quarterly insights report showed that cybersecurity continues to be a top priority for private equity firms and their portfolio companies. Private and public companies are also investing heavily in this area.

With so much at stake, many companies are turning to expertly matched third-party resources to walk them through colo security services. Our research and operations team works hand-in-hand with the top cybersecurity firms in industries including healthcare, manufacturing, technology and more.

When you’re ready to connect with a niche-specific provider to explore and enhance your colocation security strategy, we’ll be ready to make tailor-made introductions within a single business day.

Org Chart Planning: Aligning with Growth Strategy

Are you a business leader looking to take your organization to the next level? Are you struggling to find the right structure to support your growth? If so, you’re not alone.

Many companies struggle with org chart planning, but it’s a critical step in any successful growth strategy.

Let’s explore the benefits of org chart planning and how a senior advisor or consultant can help you create a structure that supports your growth goals.

Interim CFO carveout

What is Org Chart Planning?

Org chart planning is the process of designing an organizational structure that aligns with your business goals. This includes determining the roles and responsibilities of each employee, as well as the reporting relationships between them. A well-designed org chart can help you streamline your operations, improve communication, and increase efficiency.

The Benefits of Org Chart Planning

  • Improved clarity and accountability: By clearly defining roles and responsibilities, a well-designed org chart can improve clarity and accountability. This prevents confusion and overlap, while ensuring that everyone knows their job.
  • Better communication and collaboration: The right org chart can improve communication and collaboration by breaking down silos and displaying how different teams and departments interact.
  • Increased efficiency and productivity: Streamlining procedures and processes can increase efficiency and productivity, saving both time and resources while improving work quality.
  • Greater adaptability to changing business needs: Flexibility is key in today’s rapidly changing business environment. The right structure design can help your company adapt to changing needs.
  • Increased employee satisfaction: Org chart planning also gives employees a clear understanding of their role and provides them with the necessary resources to succeed. This can cause greater motivation and productivity.

How a Senior Advisor Can Help

Creating an effective org chart requires experience and expertise in organizational design. This is where a senior advisor or consultant can be invaluable. A senior advisor with COO/management experience can help you:

  • Improve your current org chart and identify areas for improvement: An experienced consultant can thoroughly analyze your structure, ensure that it is efficient and align it with business goals. They can also detect any overlapping roles or confusion to eliminate redundancy.
  • Design a new org chart that aligns with your growth goals: A management pro can identify key areas of focus and design a structure that supports them, creating a flexible org chart that accommodates future growth.

READ MORE: Employee Management Softwares: 13 Reasons To Use Them

  • Ensure your org chart supports your company culture and values: An expert in organizational design can analyze your current structure and identifying discrepancies with your mission, vision and values. They can then make sure your updated org chart accurately reflects those priorities.
  • Guide you on implementing the new org chart and managing change: A skilled advisor can help you communicate the new org chart to your employees and manage the transition process, including addressing any concerns or resistance. Strong communication and the ability to address employee questions and concerns is key.
  • Manage the transition process: An experienced change management professional identify potential challenges and develop a plan to address them. They can also track the progress of the transition and make any necessary adjustments.

The Importance of Strategy

Effective org chart planning requires a strategic approach.

  • Having a clear understanding of your growth goals: Before you begin designing your org chart, you need to have a clear understanding of your growth goals. What do you want to achieve in the next year, three years, five years? Once you know your goals, you can begin to design a structure that will help you achieve them.
  • Identifying key areas of focus: Once you know your growth goals, you need to identify your business’s key areas of focus. These are the areas where you will need to allocate the most resources in order to achieve your goals. For example, if you are planning to expand into a new market, you will need to allocate resources to marketing and sales.
  • Allocating resources to support your key areas of focus: Once you have identified your key areas of focus, you need to allocate resources to support them. This means hiring the right people, providing them with the training they need, and giving them the tools and resources they need to be successful.

Creating a Structure for Growth

Your org chart should be designed to support your growth strategy.

  • Create a scalable structure: Your org chart should be designed in a way that allows you to add new employees and departments as your business grows. This may mean creating a flatter structure with fewer levels of management, or it may mean creating a more decentralized structure with more autonomy for individual teams. There is not, however, a magic bullet for this step.
  • Build in flexibility: It should also be flexible enough to adapt to changing business needs. This may mean creating cross-functional teams that can work together on projects that cut across traditional departmental boundaries. It may also mean reorganizing to better align with your growth strategy.

READ MORE: Post-Merger Integration: Framework, Keys to Success

  • Regularly review your org chart: Don’t set it in stone. It is important to regularly review your org chart to make sure that it is still aligned with your top KPIs and while remaining flexible enough to adapt to changing needs.

Org chart planning is a critical step in any successful growth strategy. By creating a structure that aligns with your business goals, you can improve communication, increase efficiency and build a foundation for future growth.

Private equity firms often seek outside help to reorganize their portfolio companies, but private and public organizations can also reap the benefits of a niche-specific senior advisor.

Our research and operations team knows the exact resource you need before you ever contact us, and they’re ready to connect you in less than 24 hours. Reach out now to tap into the invite-only Business Builders’ Network that’s already helped thousands or companies like yours with growth strategy.