# Regional Colocation – A Great Option for SME’s  Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-11-17 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Regional Colocation: The Ideal Solution for SME IT Needs Meta Description: Discover how regional colocation services provide cost-effective, flexible, and efficient data storage solutions for small and medium-sized businesses outside URL: https://financedigest.com/regional-colocation-a-great-option-for-smeshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img8862-2258-1736844377797-compressed.jpg) By **Laurence Baker,** Marketing Manager, Keysource It is no secret that businesses are becoming ever more dependent on data due to a number of changes including an upsurge in ‘Cloud’ services, digitalization and the internet of things. As a result a key priority is the safe and efficient storage of this vital data with companies looking for the best solution to meet their requirements. Traditionally the options were either to build your own server [room or data](https://www.financedigest.com/comparative-analysis-of-the-best-data-room-providers.html "Comparative Analysis of the Best Data Room Providers") centre, which can be cost prohibitive and requires a high level of expertise to keep the IT and infrastructure running effectively and efficiently, or outsource to a large colocation provider. However, as these large [data centre operators](https://www.financedigest.com/libor-reform-should-trigger-a-major-reassessment-of-corporate-treasuries-data-operations.html "LIBOR reform should trigger a major reassessment of corporate treasuries’ data operations") tend to focus almost exclusively on large organisations they are normally situated near business hubs such as London or Manchester.  In many cases these facilities may not offer space by the rack, but sell by the suite or hall. If you add latency and travel time into the equation these stop looking like such a good option. So what other choices do [SME’s have to service their IT needs](https://www.financedigest.com/hung-out-to-dry-smes-need-further-support-to-stay-afloat.html "Hung Out to Dry: SMEs need further support to stay afloat")?  One option is going onto the cloud but as organisations want greater control over their IT hardware, a more common [solution is regional](https://www.financedigest.com/why-are-content-moderation-solutions-skyrocketing-in-the-americas-region.html "Why are Content Moderation Solutions Skyrocketing in the Americas Region") colocation. **What is regional colocation?** [Regional colocation is the term used to describe companies that provide data centre services](https://www.financedigest.com/high-energy-shockwave-therapy-units-market-end-user-demand-by-types-regions-top-players-service-provides-regional-outlook-and-forecast-to-2028-2.html "High Energy Shockwave Therapy Units Market End-User Demand by Types, Regions, Top Players, Service Provides, Regional Outlook and Forecast to 2028") to local and national organisations, but are typically based outside of the M25 corridor. They range in size considerably from smaller [regional based providers](https://www.financedigest.com/high-energy-shockwave-therapy-units-market-end-user-demand-by-types-regions-top-players-service-provides-regional-outlook-and-forecast-to-2028.html "High Energy Shockwave Therapy Units Market End-User Demand by Types, Regions, Top Players, Service Provides, Regional Outlook and Forecast to 2028") (with circa 30 racks), to larger national providers (circa 1000 racks). Just like the large national data centre operators, regional colocation providers can deliver a range of services including traditional and managed colocation, [cloud services and in some cases support](https://www.financedigest.com/tech-amigos-provides-unrivalled-aws-cloud-service-support-for-autorama-groups-leading-brand-vanarama.html "Tech Amigos provides unrivalled AWS cloud service support for Autorama Group’s leading brand, Vanarama") smaller business with the management of their IT services. Often you [don’t have to commit to a large space and can simply rent as many dedicated racks as you need](https://www.financedigest.com/you-dont-need-magic-to-anticipate-your-customers-needs-just-the-right-tech.html "You don’t need magic to anticipate your customers’ needs, just the right tech"). It is a cost-effective and simple solution which ensures your IT systems are supported by an up-to-date infrastructure which can be [scaled up and down as needed](https://www.financedigest.com/scams-have-eroded-digital-trust-banks-need-to-do-more-to-combat-the-industrial-scale-of-scams-in-the-uk.html "Scams have eroded Digital Trust – Banks need to do more to combat the industrial scale of scams in the UK."). **The regional colocation boom** Over the last 4 years we have seen a [boom in regional colocation and as such we have supported new and existing operators to launch facilities across the UK with a variety of services](https://www.financedigest.com/euro-zone-services-booming-but-sentiment-recovery-may-have-stalled-ecbs-lane.html "Euro zone services booming but sentiment recovery may have stalled -ECB’s Lane"). These facilities range from small 50 rack server rooms to a 2MW Uptime [Institute Tier III Design Certified data](https://www.financedigest.com/how-payment-institutions-can-leverage-data-to-support-merchant-customers.html "How payment institutions can leverage data to support merchant customers") centre in Scotland. In a recent interview with Tech Radar, our Associate Director, Jon Healy summed this up saying “Recent trends have seen the market oversupplied, with the ‘build it and they will come’ mantra. However, we are now in a period of [sustained growth with ‘demand’](https://www.financedigest.com/robot-operating-system-market-is-witnessing-a-sustainable-growth-due-to-increase-in-demand-scrutinized-in-the-new-analysis.html "Robot Operating System Market is witnessing a Sustainable Growth Due to Increase in Demand Scrutinized in the New Analysis") outstripping the rate of supply.” “Regional colocation is an easy [way for businesses to outsource their data](https://www.financedigest.com/three-ways-data-unlocks-business-value-for-financial-organisations.html "Three Ways Data Unlocks Business Value for Financial Organisations ") centre requirements. SMEs benefit from reduced capital expenditure (normally associated with a design and build project), greater flexibility to expand on [demand and potentially greater efficiency and resilience associated with being in shared](https://www.financedigest.com/modified-starch-market-potential-growth-share-demand-and-analysis-of-key-players-forecasts-to-2032.html "Modified Starch Market Potential Growth, Share, Demand and Analysis of Key Players – Forecasts to 2032") professional white space. [TOP 5 REASONS TO CONSIDER REGIONAL](https://www.financedigest.com/tea-pitchers-market-sales-will-witness-stellar-revenue-growth-across-top-regional-pockets.html "Tea Pitchers Market Sales Will Witness Stellar Revenue Growth Across Top Regional Pockets") **COLOCATION** 1. **Proximity** [– Your data will be held in a facility close to you meaning you can access it easily without wasting precious time](https://www.financedigest.com/lending-is-behind-the-times-the-need-to-modernise.html "Lending is behind the times – the need to modernise") travelling.  It also gives you the [opportunity to build a relationship with your operator and challenge](https://www.financedigest.com/digital-ticketing-the-challenges-and-opportunities-facing-ptos-and-ptas.html "Digital ticketing: the challenges and opportunities facing PTOs and PTAs.") them, making sure they are doing all they can to help you as they invariably want to make you happy. 2. **Latency** – Distance represents challenges regarding latency in delivering certain services to [end user](https://www.financedigest.com/industrial-gauges-market-competitive-growth-strategies-based-on-type-applications-end-user-and-region.html "Industrial Gauges Market Competitive Growth Strategies Based on Type, Applications, End User and Region") clients. This cannot always be achieved with the large monolith data centres and we are [seeing big](https://www.financedigest.com/bae-systems-sees-big-opportunity-in-space-after-uk-satellite-bolt-on.html "BAE Systems sees big opportunity in space after UK satellite bolt-on") corporations seek out small regional operators to provide specialist services to local businesses. 3. **Power Shortage –** Our obsession with data centres being located around the M25 has [seen](https://www.financedigest.com/italys-right-wing-parties-seen-winning-power-exit-polls.html "Italy’s right-wing parties seen winning power – exit polls") power availability become a real issue. Other areas [around the UK have greater capacity for growth](https://www.financedigest.com/uks-kwarteng-mini-budget-was-essential-in-resetting-debate-around-growth.html "UK’s Kwarteng: Mini budget was essential in resetting debate around growth"), especially areas that were former industrial sites or have another form of large scale renewable energy. 4. **Bespoke Solution** – You can often get a service tailored to your needswhich can be adapted and changed as required, supporting any [future business growth](https://www.financedigest.com/extracts-and-distillates-market-overview-high-demand-recent-trends-future-growth-business-scenario-technology-2022-2029.html "Extracts and Distillates Market Overview, High Demand, Recent Trends, Future Growth, Business Scenario & Technology 2022-2029"). This comes with the added peace of mind associated with being in a shared professional white space. 5. **Cost** – You can benefit from reduced capital expenditure (normally associated with a Design and [Build Project), and the fact that you can buy as little or as much as you want](https://www.financedigest.com/metas-zuckerberg-unveils-ai-projects-aimed-at-building-metaverse-future.html "Meta’s Zuckerberg unveils AI projects aimed at building metaverse future"). As a data centre specialist we have particular expertise in partnering with both national and regional colocation providers.  We understand the [challenges they face](https://www.financedigest.com/how-to-overcome-the-current-challenges-facing-your-fintech-business.html "How to overcome the current challenges facing your fintech business") in terms of efficiency, resilience, scalability, flexibility and how they can differentiate themselves from the market. As part of our consultancy offering we work with [customers looking to implement a joined up approach to the deployment of their IT strategy](https://www.financedigest.com/why-equipment-assets-should-be-the-source-of-your-customer-strategy.html "Why Equipment Assets Should Be The Source of Your Customer Strategy") whether on-premise, colocation or in the cloud. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---