Signs That Colocation is the Right Product for Your Business

colocation services in India

Of the extensive list of topics that IT teams discuss, cloud computing and colocation are perhaps the ones most discussed.

This is certainly because the IT set-ups vary drastically from one company to the other.

The differences might be minute but not too much to be overlooked.

These differences make it extremely difficult for organizations to decide what would work and what won’t.

So, we thought it was imperative to come up with an article that can help you decide whether colocation is the right thing to do.

So continue reading…

Is colocation the right choice for your business? How to decide

Before you take any step, it is essential that you do your homework. After all, your decision is going to determine where your business will be in the future; so you better make an informed one.

One of the first things that you should do is contemplate whether you want to buy or build a server. Keep all your options on the table; now make note of the Capex (capital expenditure) and operating expenses needed in each case.

For strategic benefits, always collocate to a data center nearest to your end clients. For example, if your target location is India, look for colocation service in India. Similarly, if you are operating in the US, you should collocate to data centers in the USA.

Do the math and figure out which options would work for you.

Signs that you need to co-locate your IT infra

1. You are already in possession of the hardware

If you own all the essential hardware, you shouldn’t bother migrating to a new server.

Even if the setup is turning out to be expensive, scraping it isn’t a solution. You should move all the components to a colocation facility instead.

In 90% of the cases, especially for small businesses, this would come at a cheaper cost than setting up your own power and cooling in an in-house server room.

2. You have offices in Multiple locations

Internet comes cheap but high-speed, quality internet does not.

You can bear expenses of a high-speed, reliable internet connection when your employees are in one location but you cannot keep up with the expenses of multiple offices at once.

If the area of business requires fieldwork, the performance and reliability of your internet connection can drastically reduce. Field officers would have troubles logging in and conveying information to your system.

Although it is possible to procure a robust server infra in-house, it does not come without its cost. A more viable alternative would be to outsource your infrastructure to a colocation facility.

Doing so will provide you with the same level of service but at a fraction of the cost.

3. Your Organization is Way Too Small to Own a Data Center

Hosting is inevitable irrespective of your business size. If your business comprises 1000+ employees, an in-house data center is a wise move.

However, if your organization is small, you shouldn’t be setting up a data center at all, since a data center is likely to be worth more than your entire business.

Moreover, the smaller the organization, the lesser your area of expertise. Also, with a data center, you would need to set up a dedicated IT team. This would need an extensive capital investment that would otherwise render your business as unviable.

4. The security professionals aren’t a part of your workforce

You cannot start a data center out of the blue. Managing servers isn’t as easy as managing desktops. You need dedicated security, network, and database professionals in your team.

Data centers deploy several levels of security. Before you set up a data center, think whether you can accommodate a specialized security team in your operating expense.

Colocation is a far better option because it drastically reduces the upfront expenditure required at your end.

Thus, by collocating, you can cut down costs and maximize profit margins.

5. Your current data center is limiting your performance

Talk about cooling, power, or scalability, data centers come packed with a lot of challenges.

Procuring a compute environment in-house isn’t a cheap venture at all. In layman’s terms, it isn’t at all profitable unless provisioned on a very large scale.

Moreover, your existing data center may impose a number of limitations. This could become problematic over time because an organization needs increasingly more control over its IT infrastructure.

Over time you would want more and more scalability from your data center, thus requiring intermittent upgrades. As per a report, small businesses can outsource to a colocation facility at half the sum that they spend in maintaining the data center in-house.


There are a number of reasons why you should move to a colocation facility from an existing IT infrastructure.

Making an informed decision is paramount because a wrong move can cause huge losses both in terms of capital and time.

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