In most businesses, a byproduct of growth is having to make new decisions that may affect your scalability, efficiency, and bottom line. One such consideration will likely be the scope of your IT operations, specifically with regards to a data center. In general, there are two options for businesses to consider: whether to operate an on-prem data center, meaning a group of servers that you own and control, or outsource the service through colocation, which allows customers to house their computing, storage, and networking assets at a third-party facility.

There are many factors specific to your operational needs that should be weighed before making this decision. Generally, operating your own data facility is a costly and time-consuming undertaking that requires expertise in several areas, from hardware to security and power to environmental controls. That said, some companies place a high premium on on-prem over all else and prefer to invest in their own capabilities in order to maintain control over their data and all access to their information and assets. For most industries, the benefits of colocation outweigh the benefits of an on-prem center for a number of reasons. What are the main arguments for switching from an on-premise data center to colocation? Here are our top 5:

Cost Efficiency

The price tag is typically the first consideration for making a big business decision, and so it’s the first on our list too. The cost of owning and operating your own data center quickly becomes impractical for most companies without a significant budget or outsize data needs. An on-premise data center requires not just heating and cooling but equipment maintenance, building permits, and security, not to mention full-time staffing. Colocation reduces these costs greatly by spreading them out over many users.


Colocation allows customers to rely on experts in all aspects of data center management, including compliance to regulatory standards, equipment optimization and maintenance, and physical and logistical security. All of this is an assurance that your assets are protected at every level, and that its security isn’t left only to one person but rather a team of qualified individuals whose sole job it is to keep your IT operations running smoothly.


No matter the industry, the future of a company can be uncertain. As your business changes depending on growth, branching into different areas, or scaling down others, so do your data needs. Companies who choose in-house data centers are often stuck with a fixed capacity, which causes problems when they require more or less connectivity. Choosing colocation means that a third party can provide you with customized service based exactly on your needs, even as they change over time.

High-Speed Connectivity

Solving the real-time problem of an underperforming internet connection in-house can be a nightmare, often resulting in frustrations,  wasted time, and, in the worst case, unhappy customers. Colocation data centers utilize multiple internet service providers to avoid outages and provide users with faster and more cost-effective connections. Letting professionals handle your internet needs means no more calls to the provider while your operations come screeching to a halt.


Plainly put, for most companies the best use of their real estate is not to house a data center. Staffing, storage, manufacturing, and so on likely make better use of limited space than less vital assets like data. As businesses with on-premise data centers grow, so do their IT needs, meaning more and more space needs to be allocated. Using remote solutions frees up precious square footage for more efficient and necessary processes.

On-Premise Data Center to Colocation

If your team would like to further the conversation about how data center colocation can be a benefit to your company’s IT operations, contact our team online at today.