Colocation (business)

Colocation (business)

Colocation (or co-location) [1] is the act of placing multiple (sometimes related) entities within a single location.

Colocation is often used in the data sourcing industry to mean off-site data storage, usually in a data center. This is very important for businesses since the loss of data can be crucial for companies of any size.[citation needed] An unexpected loss in data can result from fires, earthquakes, floods, or any sort of natural disaster.

  • In an organization, it refers to placing related roles or groups in a single room, building or campus.
  • In business, it refers to the practice of locating multiple similar businesses in the same facility.
  • In trading, it often refers to placing multiple data centers in proximity to trading centers [2]
  • In telecommunications, primarily wireless telecommunications facilities such as mobile wireless (cell sites) and radio broadcasting, it refers to the practice of locating multiple wireless broadcast facilities/providers within the same facility. Many jurisdictions now mandate colocation of mobile wireless carriers within a single facility to avoid the proliferation of wireless communication towers.
  • In the fast food restaurant industry, one primary use of this concept is Yum! Brands with its KFC, Taco Bell, A&W Restaurants, Long John Silver's and Pizza Hut divisions.
  • In the retail sector, Sears Holdings often operates its large format Sears stores with an H&R Block tax services office, a Lands' End clothing store and other independent operations.
  • In the airline industry, colocation commonly occurs at airports. Airline alliances will be assigned or build a fortress out of certain terminals or dominant carrier-specific terminals. An example would be at Tokyo's Narita Airport, where local carrier All Nippon Airways, a member of the Star Alliance, and its partners operate in one terminal to facilitate partner connections and product offerings, even offering combined check-in, member lounges, and ground services.

References

  1. ^ Google searches. For example, the Agile method of software development advocates that team members be collocated. A search on "agile development collocated" on 7 August 2008 produced 11,100 hits; search on "agile development colocated" produced 12,200 hits.
  2. ^ http://www.advancedtrading.com/ivyschmerken/showArticle.jhtml;jsessionid=YAMNAXILVBKFVQE1GHOSKH4ATMY32JVN?articleID=220300263&pgno=2 High-Frequency Trading Shops Play the Colocation Game

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