Five Factors to Consider Before Signing a Colocation Hosting Agreement

Published: 21st December 2011
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It would be wrong to believe that all colocation centres provide completely the same service. While the basic principals are indeed identical, different centres will provide colocation hosting services that can offer one of a number of different versions of the same service. For this reason, it is essential that a company is clear on which one they are getting when they sign the service agreement. The internet is very complex, not just because of the technology that is involved, and all of its facets but because of how it is commercially operated. The vast array of network providers, and the commercial interests they each have, mean there is a web of agreements and contracts signed between them. This, in turn, has created different methods through which internet traffic moves between the different network providers, such as internet transit, for example. Of course, cheap colocation services do not necessarily mean poor access to the world wide web, but the best colocation centres will not cut corners when it comes to getting the hardware and offering network access that are of the highest quality. Knowing which service provider to choose, however, means knowing where they stand on a few issues. Here are just three of them. Which Tier Network This is one of the more complicated areas, but basically the tier network has a direct effect on overall internet access and costs. When someone is using the internet, they frequently switch between internet service providers. These providers have agreements which allow users to access the internet. There are two ways of doing this, namely peering and transit. Basically, peering is free and transit is not. There are three network tiers, simply named tier 1 tier 2 and tier 3, and which tier a colocation centre is using will directly effect the overall monthly costs. Tier 1 systems have peering agreements, while tier 2 networks have agreements based on peering and transit. Tier 3 is transit only, and so users of this network will have to pay a fee. Usually, this monthly fee is charged on a megabyte per second basis, with a minimum amount of bandwidth part of the rental agreement. The best tier is tier 1, mainly because it has its own international backbone network in order to operate effectively, but also because they have as many as 300 other networks to exchange traffic with. Managed or Basic Colocation When it comes to a colocation agreement, it is essential to establish whether it is a basic or managed colocation deal. A basic service provides room to house the server of the client company, but little else. This means there is no monitoring service, no regular upgrading and no maintenance service. All of these aspects will be the responsibility of the client. Obviously, a managed colocation agreement means that monitoring and maintenance is part of the price. However, there may be some limits to the amount they do. Some of the most basic expectations can be missed because of a lack of clarity over the service provided. For example, whether one will be notified when disk space is running out, and how close to it that will happen. Also, whether that notification will be received via email or phone. Security and Back Up The third factor relates to the security of the hardware. With regards data security, it is the centre that should provide back up services, but it is important to know what software is used, and whether back up is available on site or off site. Physical security relates to both intruder and fire protection, which are key concerns in the area of colocation hosting. Both passive and active fire sensors should be included in any fire alarm system, with smoke detectors and a sprinkler system in place. There should also be cctv systems in place, reliable locks on the doors and a properly managed access control system. The need for such security relates to the value of the data a company has, with both financial and personal information stored. Industrial sabotage is a major issue for some companies. Even cheap colocation centres do not overlook this. The complete list of questions that should be asked is quite long, relating to everything from internet transit and peering options to the quality of monitoring services. However, the most important thing is that a thorough examination of an agreement takes place before it is signed.

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