Colocation Services Definition and Pricing!
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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)

What are T1 MPLS VPNs, and How Might a MPLS VPN Benefit Your Business?
Writen by: Dennis Green
A T1 line is a high speed 1.54 megabit per second (Mbps) circuit which is comprised of 24 individual DS-O circuits. Each DS-O circuit has a speed of 64 kilobits per second (Kbps). For perspective, your home telephone line is likely a DS-O line. T1 dedicated lines are commonly interchangeably referred to as T1 or DS1. A T1 dedicated circuit is carried through two twisted pairs of copper wires. Virtually, all residences and businesses currently have two pairs of copper wires running to them. T1 lines are capable of delivering 1.54 Mbps simultaneously in both directions, one direction for each pair of copper lines. Because T1 dedicated service is repeater driven (signal is digitally reestablished about every 6000 feet), it is available to virtually every business in the United States. T1 lines are dedicated, in that they are always connected. They are also extremely stable. Most reputable providers include service level agreements which guarantee the reliability of the T1 circuits they offer. There are several types of T1 line. These include: full (1.54 Mbps), fractional (commonly 128 Kbps to 756 Kbps), burstable, integrated (one T1 line comprised of any combination the types of T1 listed here), channelized DS1 (a specific type of integrated T1), point-to-point (direct private T1 connection between to locations), data (internet), local (local phone service), PRI (voice service which includes many added features and direct inward dial (DID) numbers), and frame relay. Each of these types of T1 has advantages over the others, depending on the specific needs of your company. Also, the availability of each is based on the offerings of each T1 provider and the geographic location of your business. VPN service utilizes major advancements in technology to establish secure private communication channels, for the transfer of data, over shared networks such as private intranets or the public internet. VPN is an acronym for virtual private network. Currently, the most popular and state-of–the-art VPNs are based on MPLS (multiprotocol label switching) technology. MPLS provides any-to-any connectivity over T1 or higher bandwidth. Some providers can provide MPLS over SDSL as well. The best MPLS networks are facilitated within the closed systems of specific tier 1 providers. With this scenario, MPLS networks are as secure as point-to-point private lines. With quality of service (QoS), MPLS networks are extremely well suited for simultaneously facilitating VOIP, priority files, multiple location audio or video conferencing, and/or high quality video transmission. For two location networks, a point-to-point private line continues a bit less expensive than a MPLS VPN. However, point-to-point circuits are not normally managed by providers, so with point-to-point lines, obtaining customer premise equipment, and configuring and maintaining the equipment is commonly the responsibility of the customer. For multiple location networks, two location networks which are more than 1000 miles apart or two location networks which you know will increase in number of locations, an MPLS network can be far more functional, and far less expensive than a network comprised of point-to-point lines. In most cases, full T1 or DS3 MPLS VPNs are provided with all needed hardware and installation, configuration and management of the network by the provider for about the same cost, or just slightly more, per location, than managed internet service. Managed MPLS networks are pretty much turn key for the end user. There are also a variety of options for networking DSL or Cable service as well. As the authorized sales agents for the top 20 telecom providers in the country, we can provide free comparative quotes for completely managed VPNs for any locations in the US, regardless of the bandwidth needed at each location. We can also provide quotes for international VPNs (including MPLS options as well). (Click here to return to top of page)