Why do large organizations opt for colocation over in-house systems?

Written by Rack Alley

Why do large organizations like Riot, Dropbox and others still use colocation rather than build out a data center? Here are a few of the reasons a company would choose LA colocation over an internal data center:


Organizations that run and provide data center services specialize in that infrastructure. They have developed the cost efficiencies, the expertise, and the experience. That type of expertise is expensive. Also, it will take away resources from the primary aim of the business. Colocating shares the cost of this expertise with several hundred clients.


Enterprise applications are more complicated than before. For applications that are more complex than server hosting Los Angeles, it is important to be closer to the customer. Colocation gives any company the ability to put a server in one or more geographical locations. Data centers can connect to other data centers, often at much better rates than a company will get directly.


Even the largest organization will not get the same rates for bandwidth as data centers. These bandwidth rates mean that they can provide speeds as much as ten times faster for the same cost. Also, you can increase that bandwidth on demand and only pay for utilization.

These are just three reasons why even the largest organizations choose colocation of in-house systems. Some of the others include infrastructure, security, and redundancy at every level.


Rack Alley is a provider of colocation services at their LA data center.