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If you own or manage a business that employs salespeople or other associates across the state (or even the country), you may find yourself increasingly frustrated with the spotty and unreliable internet access at your main hub. Spending time troubleshooting your internet connection in the middle of a video conference call or other important interaction can not only cost you time, but goodwill in the eyes of your employees and customers. On the other hand, investigating your colocation providers and finding the best deal for your business can be a challenge—especially if you're not that tech-savvy yourself. Read on to learn more about the services provided by a colocation or cloud computing broker to determine whether going down this path can provide direct benefits for your own business.
What services can a colocation broker provide?
A colocation broker's job description is much like that of any other type of broker (from mortgage to stocks to insurance)—a person who works on clients' behalf to find the best deal on a service they need. When it comes to finding reliable internet access that fits all your business's needs, a colocation broker can sift through the various internet service provider (ISP) offerings to find companies that have both the data transmission capacity and the price you're seeking.
These brokers can also be responsible for mediating disputes—if you continue to have trouble with your internet or find yourself becoming less satisfied with the services you're receiving, you'll simply be able to enlist your broker to engage in negotiations and (if necessary) find you an alternative ISP to ensure no interruption in service.
How can you decide whether investing in colocation brokerage services is a good idea for your business?
In general, if you find yourself cursing your office's internet access more than once or twice a week but can't find the time to investigate ISP alternatives yourself, a colocation broker may be able to help.
On the other hand, if you enjoy performing this sort of research and cost comparison yourself (and find it a more efficient use of your time than other aspects of running your business), or are able to outsource this duty to a staff member without spending more than you'd spend in broker commission (a sometimes complex calculation), enlisting a broker may not be worth it.
In most cases, a business owner's time will be more valuably spent on the management of various aspects of the business, allowing a broker to handle the logistics of ISP access.
What should you consider when hiring a colocation broker?
Because margins are crucial in just about any size of business, cost can be the most pressing concern for many who might otherwise be interested in colocation brokerage services. The good news is that increased competition in this arena over the last 5 or 6 years has led to lower prices as brokers struggle to gain market share—particularly in the relatively insular colocation market that focuses on smaller retail and manufacturing businesses rather than the economic powerhouses that are most often associated with outside colocation needs.
When considering whether to hire a colocation broker, you'll want to evaluate the cost structure. Many business owners have expressed satisfaction with a commission arrangement that pays the broker a certain amount per each month the recommended ISP is used—this ensures that the broker has an incentive to select an ISP that fits your needs, as he or she will stop receiving commissions if you decide to drop this ISP and return to your former one. On the other hand, cash flow considerations may make a one-time fee arrangement easier to manage for certain businesses. For more information, contact a company like DataCenterAndColocation.
Share20 January 2017
