More Affordable Colocation – The Data Center as a Network Hub

Are there ways to actually save money by using and outsource data center?

The answer is yes.  And one of the best ways to save money is to use a carrier neutral data center as the hub of your wide area network (WAN).

Many companies build a WAN in a hub and spoke model.  Other topologies are becoming common, but most still have a centralized location.  Often times this hub has been in a company's enterprise data center at the home office.

  • Depending on the location of the home office, circuits may be affordable or expensive.
  • Each circuit brought into that office is typically subject to a number of add-on charges, including last mile charges.
  • Companies are often compelled to go with one telecom carrier to achieve the pricing economies needed to make the WAN affordable.

By moving the network hub to a carrier neutal data center, companies can realize a number of benefits:

  • Access to multiple telecom providers, so they can shop for the best price/value combination on each
  • No last mile charges, for cost reductions on all circuits
  • In an outsource data center that does not charge cross connect fees, no additional per circuit charges

Those of you who are network professionals have probably noted that you need one extra circuit (back to the home office) in this colocation-based network hub.  Some of our largest customers have paid for this extra circuit plus all of their outsource data center facilities with cost savings they have realized on their individual circuits.

Generally speaking, a WAN of about five nodes or more  is where the savings start to add up. But the additional benefits of an outsource data center, including hardened facilities, Rated-4 power, and the potential for use as a disaster recovery center may provide collateral benefit for your critical systems.

Alex Carroll

Alex Carroll

Managing Member at Lifeline Data Centers
Alex, co-owner, is responsible for all real estate, construction and mission critical facilities: hardened buildings, power systems, cooling systems, fire suppression, and environmentals. Alex also manages relationships with the telecommunications providers and has an extensive background in IT infrastructure support, database administration and software design and development. Alex architected Lifeline’s proprietary GRCA system and is hands-on every day in the data center.
Alex Carroll