Colocation Services Definition and Pricing!
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Colocation Services Providers
Colocation Services Definition Continued.
Colocation centers are usually located at locations where the main bandwidth pipes of major carriers intersect. This allows most colocation facilities to offer the backup redundancy of more than one carrier. As indicated earlier, when compared to on-premise bandwidth, the cost of colocation service is extremely reasonable. For example, the average cost of a t1 circuit which terminates to a business location, is about $250 per megabit per second (mbps). At a colocation facility, however, bandwidth costs an average about $70 per mbps, or less. For high bandwidths at colos, bandwidth can be as low as $20 per mbps. Cost is commonly based on minimum commitment level. The lower the commitment, the higher the cost per mbps. For example, if the customer obligates to a minimum bandwidth commitment is 20 mbps, then the price per mbps could be approximately $60 monthly recurring charge (mrc). If the customer commits to a higher minimum commitment of 90 mbps, then the price per mbps could be much lower, like $25 mrc, per mbps.

Another great advantage of colocation services is that the bandwidth is burstable. A customer who commits to 20 mbps, but might have periodic spikes of business that require more than 20 mbps, will automatically be provided all needed bandwidth to meet their needs. This additional bandwidth usage, above the minimum commitment, will be billed at the minimum commitment rate. In the above example the $70 per mbps will be prorated for only the time period that the minimum was exceeded. Colocation facilities often provide special environmental controls which are designed to protect stored data and prevent circuit outages. Temperatures are strictly controlled to prevent servers from over heating, and backup power supplies are common, to prevent outages. Security is also often offered to prevent unauthorized access. To summarize, included in the many advantages of colocation services is lower cost per mbps, provider redundancy, burstable bandwidth, climate control, backup power supply and added security. If on-premise (at your business location) bandwidth is required, then T1, bonded T1, ethernet, or T3 (DS3) might be more viable alternatives. To obtain a free consultation without obligation to assess if colocation will best meet your needs, please give us a call at the number listed at the top of this page. (Click here to return to top of page)

Point-to-Point Compared to MPLS
Writen by: Dennis Green
A point-to-point T1 line is a private 1.54 mbps (megabits per second) circuit between to locations. Point-to-point lines have the reputation of being the most secure data transmission available. With the maturity of MPLS (multiprotocol label switching) technology, improvements in encryption, and the ability of tier 1 providers to maintain entire MPLS networks within their closed system, some now consider MPLS as secure or more secure than point-to-point. For two location networks within a few hundred miles of each other, point-to-point quotes often list a lower price than MPLS. Point-to-point circuits, however, are almost never managed (equipment provided and maintained) by providers. As a result of this, point-to-point quotes almost never include the cost of routers, configuring them and maintaining them. For multiple location networks, MPLS is far more functional, redundant, and less expensive than a network which includes a combination of point-to-point circuits. With point-to-point networks; management, configuration of the routers, and maintenance are the responsibility of the customer. Managed MPLS networks, however, are pretty much turn-key. In most cases, the complete network is setup and maintained by the provider, with very little or no charge, for installation or equipment. Point-to-Point lines are most commonly offered only as T1, T3, or OC circuits. Point to point circuits are not offered for fractional T1, bonded T1 (unless the customer takes the responsibility to bond individual T1 circuits), or fractional DS3. MPLS networks can be comprised of a combination of virtually any bandwidth including fractional T1, bonded T1, or fractional DS3. As dedicated circuits, point-to-point circuits are always connected and are billed at a flat monthly rate. Point-to-Point quotes are commonly higher than internet T1, because point-to-point lines require local loops on each end, plus the distance between each of the two locations. The exception to this would be a situation where both locations share the same point of presence (PoP). When both locations share the same PoP, only one loop is needed. As with all T1 services, maximum bandwidth can be utilized in both directions simultaneously 24 hours a day, seven days a week. Applications which are commonly used with point-to-point include: extremely secure file transfer, voice (telephone), audio and video conferencing, and high quality video broadcast. If a network has more than two locations, multiple simultaneous prioritized applications, any-to-any connectivity is desired, and/or the customer would like a completely managed solution, then MPLS is now commonly the favored option. For free availability and quotes for point-to-point or MPLS, please use the short pricing tool at the top of this page, or on our home page. It is free, easy to use, and without obligation. (Click here to return to top of page)