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	April 4, 2008 Q&A: Top Questions About Data Center Colocation by Galen Schreck with Stephanie Balaouras, Rachel A. Dines

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Executive Summary

Colocation has become an attractive option for companies that are low on data center capacity or need additional sites for disaster recovery purposes. Rising server density has made engineering a challenge for many companies, and most colocation facilities are engineered to higher service levels than typical corporate facilities. Plus, utility rates are lower at colocation facilities due to their bulk purchasing of multiple megawatts. Forrester receives a number of questions about the variety of colocation services that are currently available and how the contracts are structured — here are the most important ones for getting started.

TABLE OF CONTENTS

• 1. What types of colocation services are available?
• 2. What is the pricing structure of colocation services?
• 3. What is the typical term of a colocation contract?
• 4. Will I have the option to renew my lease at the end of the term?
• 5. What additional services do colocation vendors provide?
• 6. What is the minimum amount of equipment I can colocate?
• 7. Will I be able to choose which network provider I use?
• 8. Will colocation vendors "build-to-suit" my specific needs?

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