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Comparing Cloud Service Providers vs. Colocation Providers

As more companies migrate their client support services to the Internet, IT departments everywhere are constantly being pressured to deliver better and faster performance and results in less time.Comparing Cloud Service Providers vs. Colocation Providers For many, that means investigating alternatives such as cloud services and colocation providers.

The challenge they then face is deciding which option meets their needs. While cloud services providers and colocation providers offer comparable benefits, each one is designed to meet a particular set of business and technology requirements.


Cloud Services Provider

The National Institute of Standards and Technology once defined the cloud as an online environment that enables on-demand access to a shared assembly of computing resources such as programs, applications, networks, servers, and storage. These assets can be made available with little management effort or interaction with the service provider.

The same description applies to managed clouds, but in this instance, client workloads are also managed, along with the interface to their current IT processes. It combines the benefits of the cloud with total management of hosted workloads.

Benefits of cloud-based services include:

  • Reduced network maintenance costs, especially for corporate clients who do not have an in-house IT department
  • Software upgrades are instantly available
  • All key applications and servers are managed at one central location
  • Faster disaster recovery
  • Immediate response to emergencies

Colocation Provider

A common assumption is that a colocation provider is simply a data center where you rent server storage, power, and a connection to the Internet. The reality is that many providers today offer a wide range of services, from managed IT environments to public and private clouds.  Some even provide clients with a direct connection to Google Cloud Platform, Microsoft Azure, and Amazon Web Services.

There are two primary types of colocation providers:  

  • Wholesale: Clients lease space that is customized to meet their requirements. Those who have substantial power requirements and need over 10,000 square feet of storage space usually select this option.
  • Retail: Clients lease space inside a cage. Those who do not require vast power resources or more than 2,500 square feet of space prefer this option.

Benefits include:

  • Higher levels of security and data protection
  • Lower IT management and infrastructure costs
  • Increased power capacity
  • Greater redundancy
  • Improved uptime and reliability
  • Fast disaster recovery
  • 24/7 support

The Bottom Line

So, which is the better option? Cloud services or colocation? Each one presents its own features, benefits, and advantages, but the recommended solution depends on the needs of the individual client. A company’s infrastructure, data management, and application hosting requirements make the final determination as to which service is the better option for a business.



Does your company use cloud services or a colocation service provider to deliver some or all of its IT-based services?  Let us know your thoughts in the Comments box below.



And to learn more about cloud service providers, listen to our webinar recording “Webinar Best Practices for Data Centers and Cloud Service Providers.”

Watch "Webinar Best Practices for Data Centers and Cloud Service Providers" (Webinar Recording)


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