Back in October, 2011, I had posted an article titled ‘Colocation is so 1990s…‘ discussing why I feel colocation is going the way of the dodo for most SMB business needs, and really, it isn’t as efficient as using a virtual data center anyway.

In the middle of January I helped someone move away from colocation into our vmForge VDC service offering.

Think in the cloud but without the variable monthly billing or non-persistent storage.

“virtual data center” has a nice ring to it doesn’t it?

My customer had 6 aging servers in a colocation rack in our Minneapolis, MN data center.

At ipHouse, a colocation rack with 10A (8A usable) of power is $300 per month, or $600 for a 20A (16A usable) circuit (1 year term). This customer had the larger sized circuit (old servers use more power it seems). There is also the added fee for the Internet bandwidth.

We (ipHouse) were able to move this customer into a virtual data center for far less than the 1/2 rack was per month and the customer has room to grow and scale. Today, they are purchasing more storage than they need so they can resize their servers during deployment and add a 7th in the near future. This would have been more expensive and take more time in the physical server realm as adding more storage to a server is usually more involved than just plugging in that USB cable from the portal hard disk. Also, servers like a little more performance than what a normal USB device can offer.

From 6 physical servers of different vintages with a myriad of storage configurations to a vmForge VDC with 16 GiB RAM, 8 Ghz CPU, 500 GiB of storage, and 250 GiB of transfer.

The cost? $450.00 per month. That’s over $150.00 per month savings for this customer because their Internet bandwidth had been in addition to their colocation fees.

What if they added an 8th server to their virtual data center? If it fits within their current resource allocation then there is no added cost for them. (that isn’t a complete truth as it really depends on the operating system choice as some have costs)

Over 12 months my customer will save at least $1,800.00.

Think about the following questions:

What are you paying for colocation?

Could a virtual data center save you money every month vs physical data center services?

If you answer anything but ‘no‘ to the second question then call or email us right away. Let our knowledge help your business thrive.