1) Recently we had few major UDP attacks on our server in our collocated data center, whose responsibility to mitigate it ?
The datacenter? or us?
2)The data center suggests us to have own router now and manage it
The connection would come from data center Core router > Our router > our switch > servers
Will this not increase network complexity and reduce speed of network ?
Is that's they way colocation works with all colocation Data Center?
3)Is it necessary to have our own router and manage attacks or data centers responsibility to manage attacks of DDOS in colocation? even though we are getting our own router, it will be plug behind their core router.
1- You responsible for that unless you pay your datacenter "ISP" for a service against those attacks then it's their responsibility and not yours.
2- Not necessarily as the reduce speed as the difference result form communications between local switches should be unnoticeable.. however overall avoid adding equipments that you don't have need for as each device adds it's 2 cents to latency.
3- If ISP is giving you an unfiltered link then you have to protect your own scope..
It is not going to reduce the network speed. However it will allow you to apply your own routing policies, especially if you conned to more than 2 IP bandwidth providers. You would need to deal with any network attacks on your IP space and your network. Do you have your own AS number and your own IP space?
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NTTA and Level3 both have products for DDOS attacks. Most carriers will help you find the ports to shut down but at the end of the day its on you to mitigate. Watch out for BW overages as well and see if billing will work with you.