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When is a good time to start collocating your hardware (dedicated servers)?

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  • When is a good time to start collocating your hardware (dedicated servers)?

    When do you think is a good time to start co-locating rather than leasing hardware? When earning such profit, or do you think it's best to start with as good as a possible business model and colocate from the outset? Co-locating sure isn't for the smaller guys who have to worry a lot about cash flow and the like.

    The disadvantage to co-locating is if any hardware fails you need to replace it yourself and have one of your staff to carry out such work, whereas the advantage of leasing dedicated servers is the data centre replaces any faulty hardware for you. They certainly both have their pros and cons.
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  • #2
    As a Start-up, I would rather Lease a Server from a Provider as there are too much of Costs involved when Co-locating.

    Leasing from a Big Provider will also be cheaper than Co-locating when you Lease Less Space.

    Marcus
    FHCL likes this.

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    • #3
      Really that is a hard one. For every business that will be different. A few things to keep in mind. If you are starting out Leasing is going to be the best option. You want to make sure you are at least at a 50% margin or its not going to be worth anything in the end.

      If you want to switch to COLO a few things you have to keep in mind are,
      Switch, Firewall, PDU, Servers

      A Lot of times you can use the DC firewall and you will just have to get the switch and PDU
      Then on the servers depending on who you buy from you may be able to get a good group of servers for almost what you were leasing your servers for.

      Going into colo is not an over night deal as it takes planning
      FHCL likes this.

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      • #4
        I would like to add, Speak with your DC as we colo most of our servers, the Datacenter holds parts for us and will switch parts if we have a failure. obviously there is a charge etc but stops me having to drive hundreds if not thousands of miles depending on DC location

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