What to choose? Colocation vs In-House Data Centers | Webwerks

What to choose? Colocation vs In-House data centers


We wrote about the on-premise IT infrastructure a few posts back. In that post we had detailed about the drawbacks of in-house IT infrastructures. In this article, we will discuss the need for colocation in contrast to in-house data centers as per your business needs. We will discuss the difference between the two and why businesses should be opting for colocation as their IT infrastructure. Data is an integral part of any business and IT infrastructure is the backbone of the data. As companies expand their businesses it becomes necessary that they upgrade their systems, which raises the question, whether companies need to rely on in-house data centers or move-on to colocation? Before we go ahead with the details, we would like to describe colocation and in-house data centers.

In-house data centers:

The word In-house datacenter describes itself. In detail the in-house data centers are servers and networking hardware that is owned by the company itself. The company has complete control over the servers and the hardware, which is on-premise or in a stand-alone data center.


Colocation means that a shared facility is provided to the company by a data center provider. The company’s hardware in this case is managed by the colocation provider along with the data from other businesses. Coming back to our point what is better for your business: Colocation or In-House data centers? The data center industry has clearly shown growth in terms of demand. More businesses have seen the benefit of hosting in a colocation data center. We also checked out the Businesswire 2019 report, which states that data centers are about to grow at a CAGR of 9.1% in India, which is up from $1,062 million in 2018 to $1,950 in 2019.

There has been an increase in colocation usage in the recent years since it provides owners with higher bandwidth in comparison to in-house data centers. Also, renting collocated data centers allows businesses to pay less for more resources. Colocation also maximizes uptime, since the service providers need to have redundant power and internet connectivity. Internet is uncompromised and cheaper than in-house data centers in colocation because service provides get a lot many offers comparatively.

Colocation is also much more effective when expanding as a business, since colocation data centers provide expandable resources. Moving away from on-premise data centers also eliminates the need for in-house IT-professionals along with reduced over-head costing of power and cooling. So, if your business is growing rapidly it is ideal to invest in a colocation data centers rather than going for an in-house IT infrastructure.

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