Any growing business will eventually face the challenge of limited data storage. While it’s a challenging situation, it’s usually a good thing. That means clients are growing, business is booming, and you need more space. On-premise isn’t always the safest option for your data storage.

Traditionally, businesses have been known for maintaining their own data center. However, as remote and hybrid work situations have become commonplace, that becomes less appealing to do.

5 Risks of On-Premise Data Storage

Now, more than ever is the time for businesses to consider alternative options to on-premise data storage, and here’s why:

1. Security Issues

Physical buildings are susceptible to many unforeseen threats, like fires, floods, natural disasters, and even break-ins. When that happens, everything inside the building is at risk. Data can be stolen, tampered with, or permanently destroyed due to a force of nature. The recent experience of the pandemic that instituted a lock-down as many have never seen, prevented most people from being where the data is located.

2. Lack of Resources to Scale

As the need for more data storage grows, so does the need to upgrade servers. That can be a time-consuming and expensive process. Scaling means having access to resources to acquire and upgrade the current servers. It could also mean paying for additional staff and new training needs.

3. Limited Backup Options

Many on-premise data storage centers lack the adequate backup and recovery options needed to prevent greater risks. If not properly backed up and a system suffers a major malfunction or a permanent loss of data for some reason, that can leave the company in a dire state of emergency. This type of loss can cost the company millions of dollars in lost data alone. The server would also need to be replaced and that presents another costly issue.

4. Operational Costs

The cost to operate an on-premise data center is not always probable for many companies. While a business may be growing, the costs to maintain and upgrade the server can offset any profits made. Operating a data center means having a dedicated support team available at all times to support it, even after hours. It also means paying for repairs and having the physical capacity to place the hardware. All of this impacts your business’ overall operational costs.

5. Lack of Access/Disruption in Production

As mentioned earlier, remote and hybrid work situations are commonplace, which means companies need to figure out a way to ensure that all employees have access to the data from wherever they are. During the pandemic, many businesses were scrambling trying to figure out how to make that happen. Not having access to data when needed can halt or delay productivity.


Whether your company is currently scaling or planning to scale, the risks of on-premise data storage can be costly. At some point, you will need to decide to continue servicing an on-premise data center or consider the alternative, which includes colocation centers.

Colocation data centers have the infrastructure to handle almost any circumstance, including natural disasters. They provide the equipment, the staff, and the space for your data. Your cost is a fixed one, so you don’t have to worry about spending unexpectedly on maintenance or costly upgrades. Most importantly, you’re guaranteed reliability, have full control over your data and can scale as you need, without the additional costs.

Having the right solutions in place is detrimental to the success of your business. Colocation data centers are designed to fit the needs of your company and can help lead to its success.