Cloud Hosting Vs. Colocation: Which is Better For Your Business

Cloud vs Colocation for business

More and more businesses are choosing to relocate their company servers and networking hardware out of on-site server rooms and instead are opting for third-party hosting solutions. For many companies, particularly small businesses, these are the more cost-effective options. Owners and IT managers are faced with a choice: colocation vs. cloud.

What’s the Difference Between Colocation and Cloud Services?

The main difference between colocation and cloud services is who owns the networking and computing equipment.  With colocation, organizations own and maintain their own server software and physical hardware. However, they rent space in a colocation facility to store that equipment. With cloud hosting, businesses are given access to computing and network services powered by servers and equipment in an outside facility. In this case, it is the cloud computing provider who owns and maintains the network architecture.


How Does Colocation and Cloud Computing Help Businesses?

In addition to cost-effectiveness, both types of hosting solutions come with multiple benefits, many of which they share. Here are some of the top advantages of both colocation and cloud computing.


Security – Compared to on-premises network infrastructure, both colocation and cloud hosting are more secure. Third-party hosting providers dedicate all their time to monitoring your data and addressing security issues quickly. Reputable cloud computing vendors offer robust, multi-layered security frameworks they are willing to demonstrate to potential clients. Colocation providers can handle the physical and infrastructural security measures, while in-house IT teams of companies cover remote security operations.

Connectivity – Due to the rapid rise in popularity of hosting solutions, data centers must adapt to a competitive market. Both colocation and cloud hosting facilities invest heavily to offer client top-performance bandwidth, fast connection speeds, and connection reliability. A company’s average on-premises computing set up is likely to be outclassed by a third-party data center when it comes to connectivity and updated technology.

Backup and Disaster Recovery – Businesses who utilize hosting solution from colocation and cloud hosting providers can expect backup and disaster recovery to some as a standard service. Companies should invest in maintaining redundant business continuity solutions to ensure their data is saved and recoverable in the case of emergencies. Data centers that offer colocation or cloud hosting typically invest in top-of-the-line infrastructure and enough bandwidth to ensure data backup and recovery.


Which One is Right for Your Business?

While it might seem like the choice between colocation and cloud computing may be an either/or decision for companies, that isn’t always the case. These two types of hosting solutions are not mutually exclusive. A large portion of companies who have opted for off-premise IT solutions utilize a combination of both colocation and cloud hosting services. The decision depends on the company’s specific objectives, stakeholder needs, and IT budget.


Make these considerations when your company is deciding on which hosting solution would be the right fit for your businesses. To learn more about the pros and cons of each option, contact us or call 844.722.COLO today!


Our IT hosting experts at LightWave Networks offer top-tier Boston colocation and Dallas colocation services from our Boston facility and Dallas data center. We also offer IP transit services, dedicated servers in Boston and Dallas, managed networking, and more!

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