Put simply, data center colocation (often referred to as a ‘colo’) refers to a service that provides third party enterprise businesses, cloud service providers and network providers with a shared, secure space.

In more detail, a colocation center is a type of data center where equipment, space, bandwidth & power are available for rental to customers. A colocation data center is thus a physical facility that offers data center space to various businesses with the proper power, cooling and security to host businesses’ computing hardware and servers. This capacity ranges from cabinets or cages to private suites providing complete colocation solutions for each customer.

Colocation services are very popular and are used by companies that may not have the resources needed to maintain their own data center, but still want to enjoy all the benefits.

The term ‘colocation’ is derived from the fact that servers and other equipment from many different companies are ‘co-located’ in one data center.

Some of the largest colocation solution providers in the world include Equinix, Digital Realty, and others. They offer data center colocation services globally, meaning you can take advantage of their broad network of data centers and co-locate your equipment wherever it is needed.

By providing Importer of Record services into the countries in which you need to co-locate your equipment, TecEx makes the process of moving to a colocation center smooth & easy. We seamlessly manage the entire shipping process on your behalf: co-ordinating freight, obtaining the import licenses and permits, filing the necessary documentation as well as paying over all customs import duties, taxes and charges on your behalf. By choosing us as your Importer of Record, you can focus on doing what you do best, while we work hard to clear your goods in record time – completely hassle-free.

What are the benefits of Data Center Colocation?

  • Cost: Making use of colocation services means that you don’t have to build your own costly data center – instead, you can rent space in a shared location that provides all the necessary utilities. This ensures that you can deliver top quality internet services in your desired location, in a cost-efficient manner.
  • Ease of management: Increasingly, companies are finding that colocation centers offer the solution they need without the hassle of managing their own data center. Colocation providers take care of physical and virtual security as well as back-ups and power continuity. They provide high-volume bandwidth availability and expert support, from qualified personnel who are certified to help troubleshoot any issues.
  • Speed of deployment: Being able to place your IT equipment in a facility that is already fully operational means that equipment can be set up fast, anywhere around the world. Choosing not to use a data center colocation solution might mean that you need to construct your own data center, which can be a time consuming & expensive task.

How does an Importer of Record help with colocation?

Utilising a colocation center has the benefits of lower costs and not needing to set up a fully-fledged data center in the country in which you need your servers, routers, switches, etc. Another benefit of the colocation solution is not needing to set up a registered entity to provide services in the country in which you are co-locating your hardware. This often means that the colocation center is in a country in which you/your client do not have a registered entity set up or you/your client provide online services in multiple countries, but are headquartered in a single country such as the USA. Thus, most people utilising the colocation service run into the problem of not having a legal entity in the country in which they are co-locating their hardware that can act as their Importer of Record when importing the hardware into the country; a pre-requisite to successfully clearing customs.

It is a common misconception that the colocation data center will be willing to act as the Importer as they will be housing the equipment and will be the ultimate delivery address, however, due to the risks and complexities associated with being the Importer, the colocation data center will never act as the Importer of Record.

Secondly, due to the compliance difficulties associated with importing encrypted or wireless networking equipment all over the world, the most complicated part of data center colocation is having your equipment clear Customs without any problems arising from compliance difficulties. Importing IT equipment is a global issue, with many countries applying complicated permit requirements and onerous importing procedures on businesses looking to import IT hardware.

This is where TecEx steps in, by providing hassle-free Importer of Record & compliance services into 200+ countries and territories. Our extensive experience & global capabilities make us uniquely qualified to handle your importing & shipping needs. Our team regularly manages complex transactions, ranging from global roll-outs to high-value deployments, as well as smaller, more versatile projects. Our team has a deep understanding of the importing requirements into every one of the 200+ countries and territories into which we provide our IOR services, making TecEx’s service unparalleled on a global scale.

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