Build or Coloco?

Data is big business and is only going one way: up. As companies grow and adapt to a more data-heavy way of working, they inevitably face a choice. Do you build your own data center to house the vast ocean of data your deal with on a day-to-basic, or partner with a colocation center, a carrier hotel, who can take the burden off your organization? That is today’s question. to build or to coloco?

To Build or to Coloco?

Various reports and studies have shown that colocation data centers are expanding faster than enterprise data centers. This is, more or less, because enterprises are heading towards a colocation model, migrating away from in-house data centers. Outsourcing your data is becoming the way forward.

Constructing your own data center is an expensive business. You have to make physical improvements to existing space, bring in more power and new carriers, and install all sorts of systems such as uninterruptible power systems, generators, cooling systems, and networking equipment. All of this costs a lot. On top of these capital expenses, you add a whole new layer of staff costs for management and maintenance.

As a result, businesses are increasingly looking to outsource.

Leasing space from a carrier hotel is far less expensive than constructing your own data center. You benefit from economies of scale and save money on capital costs and staff expenses.

While colocation centers take care of everything and come ready to go, in-house data centers come with loads of costs from concept to functionality.

The construction alone will be a vast initial outlay. You’ll need expert data center staff to manage the specialized requirements of a data center and to provide ongoing support. There will be management and maintenance costs, as well as other associated costs such as power, cooling, and security of the premises.

Finally, you’ll either have to overbuild or run the risk of running out of space quickly. Scalability is a much tougher prospect with an in-house data center.

Colocation, on the other hand, is cost-effective, simple to manage, and allows for fast, inexpensive scaling whenever you need it. Because you share the facility, all associated costs are shared, which allows excellent economies of scale.

In conclusion

Building your own data center is time-consuming and costly. But leasing colocation services is great value for money and offers total flexibility. It has been estimated that colocation can be 19%-64% more cost-effective than building in-house!

If you’d like to find out more about the benefits of colocation, head over to and get in touch with our team!

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