Colocation in Memphis: A Practical Guide for Seamless Operations

Colocation is a way for businesses to maintain IT infrastructure in locations where they do not have their own private data centers. It can therefore be a useful way of accessing popular locations such as Memphis. With that in mind, here is a quick overview of colocation in Memphis, including its benefits and costs.

An overview of the Memphis business landscape

Legendary as the birthplace of the blues, modern-day Memphis is still very much a hub of the music industry. Its tourism industry is largely based on that and is enhanced by Memphis history and major cultural attractions such as the National Civil Rights Museum. The entertainment and tourism industries have fed into the leisure and hospitality industries.

The fact that Memphis is located on the Mississippi River and intersected by five major freight railroads and two Interstate Highways means that it is hugely attractive to the transport and logistics industries. This in turn has encouraged the development of manufacturing and distribution industries.

Memphis is home to several higher education institutions. These have been very active in researching fields such as medicine and technology. It also hosts prominent healthcare institutions, including St. Jude Children’s Research Hospital. These institutions not only contribute to Memphis’ economy directly but also produce skilled workers and intellectual capital that benefit other businesses.

The benefits of colocation in Memphis

Given the economic importance of Memphis, there is a strong chance that there are people in or around it you need (or want) to serve. If that’s the case, then it’s best to host your data and services in Memphis itself. This will ensure you have the fastest and most reliable connection to your users and hence deliver the best service.

Using colocation in Memphis gives businesses the freedom and cost-effectiveness of having their own private data center space plus the scalability and low upfront costs of the public cloud. Furthermore, the cost of using colocation in Memphis tends to be fairly predictable. This means that it is much easier to budget for them.

Factors influencing the cost of colocation in Memphis

Here is an overview of the five main factors that influence the cost of colocation in Memphis.

Location and physical space

Real estate costs tend to form a substantiation portion of the cost of doing business and this is certainly true of using colocation in Memphis. As cities go, Memphis is not particularly expensive. That said, it is still a city so real-estate costs are relatively high for the area.

As with cities in general, some areas of Memphis are considered more desirable than others. In the context of colocation in Memphis, these tend to be the areas with the best infrastructure, particularly the best network connectivity.

The amount of physical space a business needs will also influence the cost of colocation in Memphis. It therefore literally pays to prioritize the effective use of space.

Tier level

A colocation facility’s tier level is an indicator of its reliability as measured by guaranteed uptime and fault tolerance. The value-for-money it offers is also evaluated. Colocation facilities in higher tiers will usually charge more than nearby facilities in lower tiers. It’s therefore important for businesses to find the right balance between reliability and value.

Power

Firstly, colocation facilities in Memphis need to ensure that they can continue to supply power even during disruptions. Memphis is notorious for thunderstorms, particularly in spring. These can bring flooding and high winds, even tornadoes. The city also periodically receives ice storms and freezing rain in winter. These can bring down power lines.

Secondly, it’s preferable for colocation providers to minimize the need to use power by prioritizing energy efficiency. This is also highly relevant to colocation in Memphis as the city can be very hot from late spring to early fall. This means that cooling systems have to work particularly hard.

Connectivity

For many businesses, the main reason for using colocation in Memphis is to be able to serve users as quickly and efficiently as possible. This means that vendors with high-bandwidth, high-speed, low-latency connections can often charge a premium for their facilities.

Service provision

The more the colocation vendor does for you, the more they will charge. These charges can be standardized across all customers e.g. charges for security and compliance. Alternatively, they can be charged directly to specific customers e.g. charges for maintenance and support.