When it comes to choosing an infrastructure for disaster recovery and backup, IT managers might think that colocation and cloud storage are mutually exclusive. In theory, the latter is infinitely scalable, but the ability to scale up or down as business needs dictate comes at a cost which many small businesses can’t always afford. Despite this, its estimated that the colocation centre market is to rise in value $25.7 billion in 2015 to $54 billion by 2020.

More and more companies of large sizes, from financial services and retail through to healthcare, are considering colocation as a feasible option for secure data storage. Whereas small and medium sized businesses might prefer Cloud online storage as an option due to its cost advantages. But if you’re still unsure what your next move should be, read on to find out about the benefits of colocation and the available options when considering Cloud storage.


Are you unsure of the benefits and drawbacks of using the various cloud models? See our page ‘Public Cloud, Private Cloud, and Hybrid Cloud: What You Need to Know in 12 Minutes’ for more information.

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Security benefits of colocation solutions

Server colocation comes with a series of advantages. The digital security of the stored data and workloads can be ensured by your company using proprietary or third-party solutions, but the physical safety is in the duty of the managed service provider (MSP). That’s definitely the case if you opt for managed colocation services.

Since the physical location of the data centre remains constant, you will know at all times where your server is. Not only that, but you can be safe in the knowledge that you have controlled access 24/7, and only for those individuals you have specifically named on the access list. Offering an additional layer of security around the data centre room where your server is hosted (of course this measure is only necessary for maintenance, as workloads and data can be accessed remotely anytime).

Colocation also enables businesses to save costs that they would otherwise have spent on energy, heating and office space. Data centres typically take multiple power redundancy measures that include uninterruptible power sources (UPS) and generators. A recent trend is that more and more MSPs are turning to renewable energy both to power and to ensure backup for their data centres. Click here to read more about the benefits of using an eco-friendly data centre.

Bandwidth redundancy is yet another advantage of colocation, this is achieved by combining several types of bandwidth, sometimes from different internet service providers (ISP). Even if your business’ internet connection is down, your company’s business critical applications and services will remain available and online thanks to colocation, which leverages bandwidth redundancy, with multiple, sometime even simultaneous 10+, 100+ and Gigabit Ethernet connections.

What about the Cloud?

For start-up or small-medium sized businesses online storage capabilities of the Cloud represents an attractive option due to the fact that high technologies have become more accessible. There is an increasing demand for server hardware performance, memory requirements and greater flexibility to adjust hardware resources just by clicking on a button. Therefore as a solution the Cloud offers security, scalability and competitive Internet access to powerful platforms.

Many small and medium sized businesses choose to opt for cloud computing because of the advantages that this service offers. For example, a business connected to the Cloud, can recover its data in the case of disaster or system failures. The cloud-based backup offers protection against security leaks and builds redundancy into businesses’ information.

Cloud-based services also enable remote offices and workspaces for the employees. Having all the information stored in the Cloud and accessible to everyone, increases the flexibility of work it also heightens the level of collaboration between co-workers as long as they have simultaneous access to the same documents and the ability in parallel.


Cloud computing has the potential to transform your business IT. Discover the different types of models and how to choose the one that best suits your business goals in our page, ‘Public Cloud, Private Cloud and Hybrid Cloud: What You Need to Know in 12 Minutes’ here.

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How about a combination approach?

In some situations, it’s possible and even recommended to combine colocation with Cloud storage in order to keep costs reasonably low, while also having access to all the necessary resources. Even without this enhanced benefit its worth taking a step back to review and consider whether it’s not so much a matter of colocation vs. Cloud, but colocation and Cloud. Enabling you to take advantage of the benefits that each one brings – Cloud storage is preferable when rapid growth is desired, while colocation is preferred as a cost-cutting solution.

Even though the main consideration factors are cost orientated, a combined colocation and Cloud storage solution offers benefits and solutions for large or smaller business needs. Colocation cuts down the costs of recurring storage, computing and network resources, which are sometimes inexplicably high when storing data in the Cloud. Whereas cloud guarantees flexibility, easy collaboration with clients and employees, saving money and effort at the same time.

If you’re looking to host your server in a colocation centre, or put your business in the Cloud, you should make sure that you opt for the services of a company that offers security and optimal conditions. Bandwidth and storage capacity can be increased on demand, should the need arise.

Get in touch with us to find out more about how M247 can provide the technical knowledge and the resources that will keep your business growing!

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