Digital ecosystem is relatively a new term on the internet. Though it is common, many people still do not understand the exact meaning. These systems are made up of many different patrons, applications, third-party service providers, and contractors. Differences can be there as per the requirements of the industry. Now these systems have started working like self-contained networks. Companies can extend their reach more than their substructures.

However, developing such a digital ecosystem can be difficult. They have to adjust many entities within. The in-house data centers normally are not capable enough. Businesses, usually, do not have enough power to hyperscale data centers to the level that they develop a flourishing colocation center. That leads to issues. 

So, a trusted colocation data center could be the first step to support a successful digital ecosystem. That also leads to better scalability and power. We will explain how colocation data centers can benefit from the digital ecosystem. 

What Are the Various Forms of Digital Ecosystems?

Today, technology drives the world. Digital ecosystems can help businesses grow tremendously. There are three basic types of ecosystems that can help companies streamline their process and increase their revenue.

Businesses can build the digital infrastructure that helps them significantly improve the quality of their operations. Here are the three types:

Platform ecosystem

One relevant example of the platform ecosystem is Infrastructure-as-a-Service. It covers all essential elements used in the digital world. That includes computing, networking, digital services, and storage.

Collaboration Ecosystem

Organizations collaborate for many different reasons. Often the purpose is sharing the ideas. The majority users of such ecosystems are the researchers. They are working hard to solve certain problems and this requires them to share information. Educational institutes or even sister companies could benefit from that. Organizations get a platform that helps them connect, communicate timely, and share the data as well.

Services Ecosystem

Now is the point when companies build up some functional services. After this they make sure that these services are available for different businesses. You can think of payment service as an example. Since the world has now understood the importance of technology as a driving factor, it is the best time to introduce digital ecosystems.

Partnering with a good data center can help businesses keep up with the evolving world landscape. However, one must keep in mind the difference between an in-house data center and a colocation data center. It has an effect on the digital ecosystem of the company. 

The Differences between in-House Data Centers and Colocation

So how do you feel about this migration? From in-house data center to third-party data center or basically colocation provider. Many people believe that it would be too difficult and also counterproductive. IT teams think they will nearly lose all of the control. However, many of these assumptions are not true.

There are many myths regarding this subject. Customers have full control in the colocation service as well. Providers guarantee that help will always be available. At times, this help is much more than we get in the in-house data center.  

There is a high probability that many compliance requirements will be hard for small businesses. Colocation data centers meet all such compliances. 

It may also be difficult for small businesses’ in-house data centers to operate as efficiently as a trusted colocation data center. This can even turn into higher costs for power and cooling. It can also affect the reliability of the on-premises data center’s connectivity, also known as data center uptime. 

The in-house data centers of small businesses usually have less resources than colocation data centers. That is why efficiency levels are also lower. That also leads to increased power and  cooling expenses. Also, in-house data centers do not provide uptime as remarkable as on-premise data centers. Reason is that their connectivity is not so reliable. Move to a colocation provider and enjoy better performance  in all these aspects.  

How Can Colocation Benefit a Digital Ecosystem?

Colocation data centers have many plus points. You get to enjoy the physical location of the center. That provides you with the best power and cooling abilities. Another amazing advantage is that it can offer the company a digital ecosystem.

Also, the carrier-neutral data centers offer unparalleled connectivity and flexibility for its customers. Companies can connect with many additional options which are extremely valuable. 

We know that colocation data centers have connections. Also the good providers give you access to the best cloud service providers. With the use of an SDN, or Software Defined Network, colocation providers can effortlessly connect to a variety of cloud applications.

Cloud strategies including multi-cloud and hybrid cloud solutions continue to be a good option for many companies. A colocation data center can help with all of these aspects with its various connectivity options.

Another important aspect of managing a data center (which we touched on earlier) is uptime. Any sort of system downtime can be extremely harmful to a business. Downtime can potentially cost some businesses up to $540,000 every single hour. Trusted colocation providers have Service Level Agreements that guarantee the amount of maximum downtime their customers may experience. 

All data centers that use the Uptime Institute’s Data Center Tier Standard System offer between 99.671% to 99.995% of uptime depending on the tier. The lowest tier, Tier 1 data centers, guarantees their customers less than 30 hours of downtime every year. This is a hard feat to achieve by small in-house data centers. Trusted data centers also have good disaster recovery plans, which also help with uptime.

Conclusion

Digital ecosystems make communication between various contractors, patrons, applications, third-party service providers, and all relevant technology faster and more efficient. 

These digital ecosystems can benefit from using a trusted colocation provider. By increasing the efficiency of power and cooling, adding connectivity and flexibility, increasing the amount of uptime, plus all of the additional built-in benefits that a colocation data center provides will help these digital ecosystems thrive. 

There are many reasons small to medium-sized businesses should use a trusted colocation provider and improving a company’s digital ecosystem is certainly one of these reasons.

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