Partnering with a cloud and/or colocation provider is becoming an increasingly popular strategy as businesses attempt to respond to the new operational climate enabled by cloud computing and other emerging technologies.
Many businesses are exploring ways to outsource segments of their IT operations, and most of these efforts center around the concept of adding IT capabilities while freeing up resources to take on more strategic, customer-centric roles. Both cloud computing and colocation can support such strategies.
Companies that turn to data centers for colocation purchase their own hardware (servers) and have the ability to completely control the data and applications on the systems. A pure hosting model allows applications to reside on the providers hardware and often offers tiered levels of managed services and security.
Data center colocation and cloud computing can both enable organizations to reduce IT costs and improve efficiency.
Cloud computing delivers value through shared computing architectures. In the public cloud, this comes out by having multiple stakeholders sharing the hardware resources of a cluster of machines, allowing them also to spread the cost of operating those systems. Within this setup, businesses only pay for the system resources they use, leading to a highly efficient fiscal model. The private cloud delivers its cost savings by maximizing system resources and sharing them efficiently throughout an organization, delivering some of the value of the public cloud, but not matching it entirely.
Colocation’s cost control measures are related, as they are built around the economies of scale used by the cloud, but they are not based on shared server and storage resources. Instead, colocation is based on shared facility functionality. The service models enables organizations to lease space in a third-party data center, not partitions within a cluster of servers and storage machines. The end result is a situation in which organizations access highly-efficient, state-of-the-art data center resources at a fraction of the cost it would take for them to build such systems on their own.