Unlike most products and services, a colocation arrangement can be completely customized to meet the needs of each company. In order to determine the cost of the service, you need to first take a look at what equipment you’ll be colocating. The needs of a small business with a couple critical servers will differ from a large enterprise with hundreds of servers and specialized security requirements.

What goes into colocation pricing, then? Basically, four important considerations:
Power. The more equipment that’s colocated, the more power required to keep that equipment running. Equipment which requires specialized voltage (and more of it!) – like a Storage Area Network – will cost more to colocate than a standard server.
- Physical Space. A full server cabinet – which typically is 42 rack units (or 73.5 inches) – costs more to rent than a half-cabinet.
Companies that require multiple cabinets may opt for a private suite as an additional layer of security. Alternatively, if a company with only a few servers doesn’t need 24/7 access to their space, it can save money by sharing a cabinet (or part of a cabinet) with others.
- Bandwidth and Connectivity. A fixed amount of Internet bandwidth is typically included with your colocation service. If your servers and applications require more Internet bandwidth, this can be purchased at a committed or burstable rate. Data centers that are "carrier-neutral" will generally allow customers to choose from several providers for Internet bandwidth. Various redundancy configurations to decrease the likelihood of losing connectivity are also available for different prices.
- Managed Services. Companies that colocate can use the data center as anything from a secure, environmentally-controlled space to a nearly full-service facility that monitors equipment, performs maintenance, and does any number of tasks in arrangement with a company’s IT department.
Security is another important consideration, although it’s not normally a line item on a colocation pricing quote. Most data centers, in other words, don’t offer different levels of security for different prices. Most, however – including the ones VISI operates in Minneapolis, Minnesota and throughout the Midwest – provide physical security that is more than enough to meet SSAE 16 Type II requirements.
What colocation pricing considerations will most impact your company? Contact Minneapolis,
Minnesota-based VISI for a free consultation, colocation quote, or to tour of one
of our Midwestern data centers.