History
of Colocation
The
Birth of the Internet Spawns Colocation
The
origination of colocation has
its foundation in the birth of
what we today call the
Internet.
The Internet was
created initially for
governmental and educational
purposes.
Tracing back its
roots to discover the primary
reason for its existence, the
Internet initially and to this
day, serves to accommodate the
same need - information and
communication exchange.
With its improved
qualities over time and its
ability to connect worldwide,
commerce eventually found the
Internet to be a superior
means of producing global,
cost effective business as
well.
For companies to
maximize their Internet
connectivity and ensure
profitability, they turned to
Internet data centers or
colocation facilities.
Colocation facilities
formed during the evolution of
the Internet and now boast as
a technical and financial
necessity to Internet business
today.
The
Internet Looks Attractive As A
Business Tool - the Seed for
Colocation is Planted
During
the 1980s, the Internet was
growing rapidly underneath the
radar of mainstream knowledge.
While computers were
still quite new to the masses,
technology increasingly
elevated itself allowing more
sophisticated means of
communication.
The first major network
connecting the universities
and government was the
ARPANET [the Advanced
Research Projects Agency
Network].
Instant messaging and
relaying of scientific
research at universities and
colleges around the world were
being transferred effortlessly
by connecting different
networks to one another.
The accessibility of
data and information
transported via the Internet
to various institutions
created a technological buzz
that caught the attention of
businesses that equally
desired to benefit from the
instantaneous communication
opportunities.
By the
end of the decade, the first
Internet Service Providers
(ISPs) were formed. These ISPs spearheaded the movement for what grew into
Internet data centers or
colocation facilities.
One of the most recognized
company's pioneering this
movement was a company
originally called UUNET
Communication Services.
Founded by Rick Adams, UUNET
Communication Services was
initially formed as a
non-profit in 1987. It
soon changed its status and
within two years was renamed UNNET. At first, universities
and colleges reacted
negatively to the idea of
non-educational use of the
networks.
However, it was a
result of the ISPs that
educational institutions were
able to participate in new
areas of research because
costs related to Internet
services became more
affordable.
As it would be, UUNET launched
an independent IP Backbone
called AlterNet, becoming the
fastest growing ISP in the mid
90s. Surpassing MCI, Sprint, and PSI (one of the
original ISPs), it was later
purchased by WorldCom.
Ultimately WorldCom went
bankrupt and its divided
assets became the property of
Verizon.
Colocation:
A Silicon Valley Dot Com Rush
In 1994, commercial
restrictions that were
previously hindering
entrepreneurs and companies
from completely utilizing the
Internet fell to the wayside.
Moreover, additional
ISPs and colocation facilities
originated to take advantage
of the newly
established technological wave
that would prove to be a
breakthrough for global
businesses that were popping
up overnight. A Silicon Valley native by the name of Mike Leber began his start-up
company: Hurricane Electric Internet
Services.
Hurricane Electric was among the first
ISPs that embraced this
newfound opportunity to
provide colocation for
companies that saw the
advantages of Internet
business.
Hurricane Electric helped pave
the way for Internet business
to be recognized as a viable
means of commerce.
Equally contributing to
educational institutions,
Hurricane Electric implemented
a special program offering
free Internet services to
colleges and universities to
help sustain research and
educational
growth. Colocation
Companies that Survived the
Bust It
has been over 14 years since
the inception of the Internet
was used for business.
Since then,
many companies have come and
gone, including colocation companies and
ISPs.
The dot com boom and bust left
many businesses hung out to
dry. Colocation
facilities such as Level
3, Equinix, and Cogent have all
struggled financially and IBM
simply jumped ship to avoid
further profit losses.
In 2002, AboveNet declared bankruptcy
and shut out their customers'
accessibility to their
equipment since the bank
considered the equipment
assets. Verio
reportedly closed down 36 of
its 46 colocation facilities
that same year due to poor planning and over
expansion. Hurricane
Electric is one of the few
facilities that not only
survived the bust, but
actually has been profitable
every year since its
beginning. This is a
landmark achievement that
reflects a diligence and
stability unlike much of its
competition. This
company currently owns and operates some of the
largest state of the art
colocation facilities in
Silicon Valley and the Bay
Area with a network of 19
other colocation facilities
worldwide. Colocation
Remains A Proven Entity for
Internet Business Throughout
its existence, colocation has
consistently taken Internet
business to new heights by bringing technical
reliability to entrepreneurs and
cutting costs down
significantly. It
continues to play a
distinctive role within a
company's profitability.
Because the Internet is
becoming more of a standard of
life, businesses will continue
to rely on it increasingly
more. The incomparable
strengths colocation offers
makes it a bar none choice for
companies wishing to compete
in domestic and worldwide
trade by utilizing the
Internet, thereby making
colocation a benchmark around
the globe for Internet
business.
***
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