Choosing the Right IT Infrastructure: Comparing the Benefits of Colocation and the Cloud

Published on April 25, 2023,

by Michael Wilson

Today, businesses rely on data and information technology (IT) more than ever. As a result, the need for reliable and secure storage of data and IT infrastructure has become a necessity for most companies. Colocation and Cloud computing are two popular options for businesses seeking to store their IT infrastructure and data. In this article, we will compare and contrast colocation and the cloud to help businesses determine which option is best for their needs.

What is Colocation?

Colocation, also known as “colo,” is a method of hosting a company's servers and other IT infrastructure at a third-party data center. Colocation providers offer businesses space, power, cooling, and physical security for their IT infrastructure. Companies can use their own equipment or lease equipment from the colocation provider. Colocation data centers typically offer high-speed internet connectivity and backup power supplies, ensuring 24/7 availability and uninterrupted power. The centers themselves are certified according to Uptime Institute’s tiering classification, ranging from a Tier 1 to a Tier 4 system.

Benefits of Colocation

One of the significant benefits of colocation is that businesses can control their IT infrastructure while outsourcing the maintenance and management of their physical equipment to the colocation provider. This frees up a company's IT team to focus on other tasks, such as software development and network security. Additionally, colocation data centers offer high levels of physical security, such as video surveillance, security personnel, and biometric access controls, reducing the risk of unauthorized access to equipment and data.

What is the Cloud?

The cloud refers to the use of remote servers to store, manage, and process data over the internet. Cloud computing providers offer a range of services, from storage and computing power to software and applications. Companies can access these services through a web browser or software application, eliminating the need for physical hardware and infrastructure.

The cloud has various iterations and can be private, community, public, or hybrid.

Benefits of the Cloud

Cloud computing offers several benefits for businesses, including scalability and flexibility. Cloud providers can quickly increase or decrease the amount of storage or computing power a business needs, allowing companies to adjust to changing demands quickly. Additionally, cloud computing providers offer redundancy and backup services, ensuring that data is always available and recoverable in the event of an outage or disaster.

Comparing Colocation to the Cloud

When comparing colocation to the cloud, there are several factors to consider, including cost, control, and security. Colocation requires businesses to purchase and maintain their own equipment, which can be costly upfront. However, in the long run, colocation can be more cost-effective than the cloud, as businesses can amortize the cost of their hardware over several years.

On the other hand, the cloud eliminates the need for physical infrastructure, reducing upfront costs. However, cloud providers charge businesses based on usage, which can result in higher costs over time. Additionally, with the cloud, businesses relinquish control over their IT infrastructure to the cloud provider, which may not be suitable for all businesses.

In terms of security, both colocation and the cloud offer high levels of physical and digital security. Colocation providers typically offer better physical security, while cloud providers offer better digital security, such as encryption and firewalls.

Ultimately, the choice between colocation and the cloud depends on a company's specific needs and resources. Small businesses with limited resources may find the cloud more affordable and easier to manage, while larger businesses with significant IT infrastructure may benefit from the control and cost-effectiveness of colocation.

In conclusion, colocation and the cloud are two viable options for businesses seeking to store and manage their IT infrastructure and data. Colocation offers businesses control over their hardware and physical security, while the cloud offers scalability and flexibility. Ultimately, businesses should choose the option that best fits their needs, resources, and long-term goals.