Posts Tagged 'Colocation'

January 8, 2016

A guide to Direct Link connectivity

So you’ve got your infrastructure running on SoftLayer, but you find yourself wishing for a more direct way to connect your on-premises or co-located infrastructure to your SoftLayer cloud infrastructure—with higher bandwidth and lower latency. And you also think the Internet just isn’t good enough when we’re talking VPN tunnels and private networking connectivity. Does that sound like you?

What are my options?

SoftLayer offers three Direct Link products that are specifically for customers looking for the most efficient connection to their SoftLayer private network. A Direct Link enables you to connect to the SoftLayer private network backbone with low latency speeds—up to 10Gbps using fiber cross-connect patches directly into the SoftLayer private network. A Direct Link is used to connect to a SoftLayer private network within the same geographical location of the physical cross-connect. (An add-on is available that enables you to connect to any of your SoftLayer private networks on a global scale.)

Direct Link Network Service Provider

The Direct Link NSP option allows you to create a cross-connect using single-mode fiber from one of our PoP locations onto the SoftLayer private backbone. You’ll have a Network Service Provider of your own preference that provides you with connectivity from your on-prem location to the SoftLayer PoP. This could be an “in-facility” cross-connect to your own equipment, MPLS, Metro WAN, or Fiber provider. The Direct Link NSP is the top-tier connectivity option we offer pertaining to private networking connectivity onto the SoftLayer private backbone.

Direct Link Cloud Exchange Provider

A cloud exchange provider is a carrier/network provider that is already connected to SoftLayer using multi-tenant, high capacity links. This allows you to purchase a virtual circuit at this provider and a Direct Link cloud exchange link at SoftLayer at reduced costs, because the physical connectivity from SoftLayer to the cloud exchange provider is already in place and shared amongst other customers.

Direct Link Colocation Provider

If your gear is co-located in a cabinet purchased via SoftLayer that’s in the same facility near or adjacent to a SoftLayer data center or POD, this option would work for you. Similar to the NSP option, this is a single-mode fiber but there’s no need to connect to a SoftLayer PoP location first—you can connect directly from your cabinet to the relevant SoftLayer data center.

How do you communicate over a Direct Link?

The SoftLayer Direct Link service is a routed Layer 3 service. Routing options are: routing using a SoftLayer assigned subnet, NAT, GRE or IPsec tunnels, VRF, and BGP.

We directly bind the 172.x.x.x IP block to your remote hosts that need to communicate with your SoftLayer infrastructure. You can either renumber your existing hosts on the remote networks or bind these as secondary IPs and setup appropriate static routes on the host. You can then use the 172.x.x.x IP space to communicate with the 10.x.x.x IP's of your SoftLayer hosts as necessary. Routing via BGP is optional.

With NAT, SoftLayer will assign you a block of IPs from the IP block to NAT into a device from your remote network to prevent IP conflicts with the SoftLayer 10.x.x.x IP range(s) assigned.

GRE / IPsec Tunneling
You can create a GRE or IPSEC tunnel between the remote network and your infrastructure here at SoftLayer. This allows you to use whatever IP space you want on the SoftLayer side and route back across the tunnel to the remote network. With that being said, this is a configuration that will have to be managed and supported by you, independent of SoftLayer. Furthermore, this configuration could break connectivity to the SoftLayer services network if you use a 10.x.x.x block that SoftLayer has in use for services. This solution will also require that each host needing connectivity to the SoftLayer services network and the remote network have two IPs assigned (one from the SL 10.x.x.x block, and one from the remote network block) and static routes setup on the host to ensure traffic is routed appropriately. You will not be able to assign whatever IP space you want directly on the SoftLayer hosts (BYOIP) and have it routable on the SoftLayer network inherently. The only way to do this is as outlined above and is not supported by SoftLayer.

You can opt-in to utilizing a VRF (Virtual Routing and Forwarding) instance. This allows the customer to either utilize their own remote IP addresses or overlap with a large majority of the SoftLayer infrastructure; however, you must be aware that if you utilize the 10.x.x.x network you still cannot overlap with your hosts within SoftLayer nor within the SoftLayer services network ( and You will not be able to set any of the following for your remote prefixes:,,,,, and any IP ranges assigned to your VLANs on the SoftLayer platform. When choosing the VRF option, the ability to use SoftLayer VPN services for management of your servers will no longer be possible. Routing via BGP is optional.



Will I need to provide my own cross-connect?
Yes, you will need to order your own cross-connect at your data center of choice—to be connected to the SoftLayer switch port described in the LOA (Letter of Authorization) provided.

What kind of cross-connects are supported?
We strictly use Single Mode Fiber (SMF). We do not accept MMF or Copper.

What is the default size of the remote 172.16.*.* subnet assigned?
Unless otherwise requested, Direct Link customers will be assigned a /24 (256 IPs) subnet.

Which IP block has been reserved for SoftLayer servers on the backend?
We've allocated the entire block for use on the SL private network. Specifically, has been ear-marked for services. Here’s the full list of service subnets:

Which IP block has been reserved for point-to-point SoftLayer XCR to customer router? range. We normally allocate either a /30 or /31 subnet for the point-to-point connection (between our XCR and their equipment on the other end of the Direct Link).

Does Direct Link support jumbo frames?
Yes, just like the private SoftLayer network Direct Link can support up to MTU (Maximum Transmission Unit) 9000-size jumbo frames.

Pricing and locations

A list of available locations and pricing can be found at

-Mathijs Dubbe

October 27, 2010

Oh No CoLo, Go Go Godzilla (Apologies to Blue Oyster Cult)

A traditional Co-location has certain advantages and for some customers it makes a great deal of sense. At least it does at first blush. Take a look:

  • Colo is cheaper than doing it yourself as physical infrastructure costs are shared across a number of customers.
  • The hardware is yours, not the co-location company’s. This means you can scale in the manner you please versus what suits the business model of the co-location company. The potential downside is that this assumes you were smart enough to pre-buy the space to grow into…
  • The software is yours, too. You are not limited to the management suite provided by the co-location company. Use what you wish.
  • Colo centers are usually more robust than a typical business environment. They deploy more physical security in an environment that is designed to properly manage power (multiple generators on-site for example) and the risks associated with fire and other natural disasters.
  • Upgrade paths are determined by you versus the hosting provider.

But what about the cost side of the equation? What does that look like? It goes without saying that it is (usually) cheaper to use a provider like SoftLayer to host your gear, but by how much? We have built a relatively simple model to get at some of these answers.


  • A mix of 75 small servers (Xeon 5503, 2 GB RAM, 250 GB SATA) and 75 large servers (Xeon 5520, 3 GB RAM, 250 GB SATA)
  • Colo pricing was based on $100 per U per month, or $2,500 per 40U rack per month cost. Colo capex assumed the same base configuration but at current market prices.
  • We assumed a $199 price point for SoftLayer’s small servers and $359 for large servers
  • Bandwidth consumption of 2500 GB per server per month (this is about 50% of what we see in house). A price of $50 per Mbps was used.
  • A refresh schedule of 50% at 36 months, 25% at 48 months and 25% at 60 months

So what do the numbers tell us? Well, I think it paints a pretty compelling picture for SoftLayer. The 60 month Total Cash Outlay (TCO) for Colocation is 131% of the SoftLayer cost.

Total Cash Outlay

  Collocation Softlayer
Initial Capital Expenditure (Cash Outlay) $341,700 $0
Monthly Recurring Charges $64,778 $60,450
60 Month TCO $4,740,917 $3,627,000

In addition to the total cash outlay, we can add in a bunch of additional “hassle costs” – the hassle of driving to the DC in the middle of the night for an emergency, the hassle of doing your own software patching, setting up your own monitoring, waiting on hardware delivery (and you are not going to be first in line given your volumes are likely to be low compared to SoftLayer), the hassle of booking assets to the balance sheet, depreciation entries, salvage accounting entries, actual equipment disposal, downtime while you perform upgrades – ugh, the list is almost endless.

The argument for a SoftLayer solution is pretty strong based on the numbers alone. And I think that they ought to be persuasive enough for most to rethink a colocation decision. That said colocation decisions are not made from a cost perspective alone.

For example:

  • Issues around data integrity and security often drive companies to adopt a corporate philosophy that dictates co-location (or an on premise solution) over an outsourced solution. There is a deemed corporate need to have data / applications running over their own iron. Indeed, for many, colocation represents a significant and progressive decision.
  • Many companies have infrastructure in place and a decision will not be made to veer from the current solution until a technology refresh is in order. Never mind that fact that a transition to an outsourced solution (and this is the case when lots of things are outsourced, not just infrastructure) can generate significant internal anxiety.

Many outsourcing adoption models seem to show a similar trend. To a degree much of this becomes a market evolution consideration.

  1. Adoption is very slow to start. Companies do not understand the new model and as a result do not trust vendor promises of cost savings and service delivery. To be fair to customers, service delivery for many solutions is poor at the beginning and cost savings often disappear as a result.
  2. The vendor population responds to initial concerns regarding service delivery and perceptions around cost savings. Innovation drives significant improvements from a product and service delivery perspective. The solution now seems more viable and adoption picks up.
  3. For some services (payroll is a good example), the cost savings of outsourcing the solution are realized across the marketplace with excellent service delivery and support being commonplace. We are close to mass market adoption, but some companies will opt to keep things in house regardless.

So where are we on the evolutionary curve? That is a difficult question to answer as there are numerous things to consider dependent upon where you want to look.

For most SMBs, outsourcing functions like HR/Payroll or their IT infrastructure is a no brainer – capital is not as readily available and existing staff is likely overburdened making sure everything else works. At the end of the day, the desire is to focus on running their business, not the technology that enables it. The decision is relatively easy to make.

As we go further up the food chain, the decision matrix gets infinitely more complex driven by an increase in geographic reach (local – national – international), an increase in the complexity of requirements, an increase in the number (and complexity) of systems being used and typically large IT organization that can be a terrific driving (or drowning?) force in the organization. The end result is that decisions to outsource anything are not easy to reach. Outsourcing occurs in pockets and SoftLayer certainly sees some of this where enterprise customers use us for a few things versus everything.

At the end of the day, the hosting market will continue to be multifaceted. All businesses are not alike and different needs (real or otherwise) will drive different business decisions. While I believe colocation will remain a viable solution, I believe that it will be less important in the future. The advantages presented by companies like SoftLayer only get more powerful over time, and we are going to be ready.


July 16, 2007

Collocation? Que Loco!

In most project management and system development circles, collocation refers to the centralization of resources, human and otherwise, for the purpose of creating greater efficiencies in a development cycle. In most cases, this involves pulling a developer from here, an analyst from there, and so on, for the life of the effort that they have been designated to participate in. In this day and age, with stakeholders spanning the globe, collocating for the sake of one project is not quite feasible. Now, imagine collocating for every project. Some might say, “That’s crazy!” Here at SoftLayer, we are just that… collocated that is. Sales, Finance, Development, and Support all share the same roof, breathe the same air, and drink the same coffee!

Outside of the obvious efficiencies gained from being in each other’s reach, such as information sharing and truly real-time communication, we reap other benefits that quickly cascade out to you, our customers. A major benefit that we have realized is the speed of going from suggestion or conception, to the delivery of a valued and usable solution. A good example of this resulted in one of the latest API method releases that I was recently involved in.

While working on a solution to parallel the monitoring feature of the Customer Portal, one of our forum moderators noticed a request from a customer that involved exposing the monitoring data to the API as well as including a few other bells and whistles. By the end of the day, the new API monitoring method, along with the customer’s requested additions, was approved, designed, developed, and tested! How crazy is that? Let me run that by you again, the customer made a request, the company responded… quickly. No web conferences, conference calls, misinterpreted emails or IMs, just a quick and correct response.

Another benefit of being collocated is visibility. Good ideas are never overlooked. While we like to think of ourselves as innovators that are constantly ahead of the curve, we are always looking for ways of serving our customers better. Whether you are engaged in a phone call or chat with one of our Sales Representatives, touching bases with Support, or volleying an idea through the SoftLayer Forum, your input is channeled directly to the hub where a dedicated and connected team is staged for top performance. Our disposition affords us the ability to nimbly address your position, resulting in gains that can reach crazy proportions!


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