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Beyond the Co-lo Checklist: Tech Services — or Landlord?

Beyond the Co-lo Checklist: Tech Services — or Landlord?

Thinking about renting space in a co-location facility?

I suggest you visit any site you’re considering with the usual due-diligence checklist that addresses matters of security, compliance, environmental risks, power redundancy, and networking capabilities.

This checklist will get you only so far, however. You’ll need to keep a couple of other co-location considerations front-of-mind, too.

First, who owns the co-lo site you’re considering? If it’s a real estate investment trust (REIT), this may impact how the co-lo site operates.

After all, REIT profits come from real estate — in this case, renting rack space — rather than providing technology services. At minimum, you’ll need to know the parties represented in your contract. A co-lo outfit operating on the REIT’s property? The REIT itself? What happens if, say, the REIT’s facility rather than the co-lo provider is responsible for a costly power outage?

By contrast, co-lo data centers owned and operated by experienced technology services providers act as much more than landlords, since they’re committed to fielding cutting-edge data center environments supported by a deep technical and business expertise that enables them to take full responsibility for what they provide.

So here’s the second co-lo consideration to keep front-of-mind: even if you don’t currently anticipate needing anything more than rented rack space, you may someday be glad for a tech-savvy co-lo provider able to also offer round-the-clock monitoring, remote hands, and the ability to deliver cloud integration or managed services whenever you need them.

Tim Burke
Meet the Author

Tim Burke is the President and CEO of Quest. He has been at the helm for over 30 years.


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