The idea of centralized data centers in Toronto or any major center is not new. The concept existed even in the days of the ENIAC, one of the earliest models of the computer but the idea took off during the internet era – i.e. during the “.com bubble”. Over the past 15-20 years, companies of all sizes created their own centers of computing.  As this evolved, they realized that there was considerable cost and effort associated with running a reliable, secure computing facility and the popularity of colocation in Toronto and other major centers grew.

Enter cloud computing which promises a secure, reliable, automated and cost-effective solution.  Now, organizations are assessing what applications and services are ready and appropriate for migration to the cloud.  As organizations evaluate their options and capabilities, they realize that cloud computing still requires them to own some infrastructure. But owning the infrastructure does not mean that an organization must own the facility, and this is where colocation provides a solution.  The colocation provider builds, owns and manages the facility, and their customers share this space to gain greater flexibility and the improved economics of a shared model.

Cloud and Colocation cost models

As companies assess moving applications and infrastructure to the cloud they must understand the economics.  Cost predictability is essential to running an efficient and profitable business. What companies are realizing is due to utility costs and pay as you go, models, the cost of running a server in the cloud is not what they expected and is commonly unpredictable.  Compare this with colocation in a data center where typically monthly prices are set and consistent.

As companies evaluate if and how much they should invest in the cloud, the cost analysis continues to be very complex.  In the meantime, to set themselves apart colocation providers are able to offer additional services such as monitoring, architectural and security advice and disaster recovery work areas.

Cloud vs. Colocation: Which option is best?

IT leaders need to decide what solution is best for their organization. Many decisions will be made based on the perception – rather than the reality.  For instance: “Public cloud is less expensive.” or “Owning my own infrastructure isn’t resilient.” Other decisions will be driven by business leaders who want to move away from a capital expenditure model to an operational expenditure one, or the need for greater levels of business availability.

Cloud & Colocation: Best of both worlds

A hybrid ready data center, like Canada15Edge, can provide the flexibility you need to figure out the right balance. It may be that a hybrid data center can deliver colocation, Private and Public Cloud in the right mix for your company and change the mix for you as your business needs grow.

Whatever approach an organization adopts, the plan they choose must support the business and its goals. There is no single answer. Colocation & Cloud both have their parts to play in any system. The key is taking advantage of what both platforms have to offer and integrating them successfully.

If your company is unsure about the benefits of Cloud vs. Colocation, our team of experts at Canada15Edge Data Centers will be more than happy to help you out. Contact us today to know more about our solutions for your business.