Colocation – read the small print… | london colocation

Colocation London Services

London Data Centres’ are facing increasing challenges, shortage of power, connected space and the ever challenging transportation issues. As an Enterprise customer you will be subjected to a lack of contiguous space, huge uplifts in costs once your primary term is complete and little to no room for growth. Many companies suffer their racks dotted around on the same floor if their lucky but possibly on different floors or even at different data centres, just to allow for organic growth!

Whilst there has been some considerable development of new Central London facilities, Telehouse West for example, (raised floor space will be circa 300,000 sq metres by 2015)  you need to be prepared to pay a significant premium to satisfy server huggers and provide geographical proximity.

Gartner reports there will be a “rapid rise in problems associated with power, cooling and space” in Central London by 2015.  With a new generation of high-density equipment, Customers will find it difficult and very expensive to secure this within Central London.

So what’s the smart move…?

M25 periphery sites, such as Sentrum in Woking and Hayes and the stat-of-the-art Digital Realty Trust site in Redhill, Surrey are becoming increasingly popular. Average density is 5kW per rack and located just 30 minutes from Central London you can be on-site in less time than it takes you to cross London!  Traditional barriers for these facilities such as network cost and latency have been removed, with low cost access to leading network providers and latency times to allow real-time replication commonplace.

Average costs for a 5kW rack including power in Redhill are £1,495 per month compared to over £2,000 in Global Switch, Telehouse etc and there is predicted to be a mass exodus of colocation services to M25 periphery sites over the next few years.

Future proofing…

Saving cost now, increasing density and having space to grow are all well and good, but what happens at the end of your primary contracted term? Businesses need to have a long-term view of their data centre costs. The new wave of service providers, such as Source are able to provide guaranteed maximum price increments of less than 5% per annum, regardless of what the initial term is – now go ask your Central London provider to do that…?

Fenton Bard, Source,  2011

Fenton Bard was a founding director of Adapt Group Ltd and in 2010 formed Source Managed Services Limited ( to provide a truly independent resource for Enterprise and Wholesale data centre services.


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