For any organisation, the real opportunity lies in creating the correct synergy between colocation and cloud. Using these components in the right mix, for the right workload can help organisations achieve a dependable hybrid infrastructure.

While opting for a data center facility or service provider, there are several options to consider – each tailored to service a multitude of industries and business needs efficiently. Understanding various data center facilities and service offerings available is vital. 

With its promise of scalability, flexibility and agility, cloud computing has enhanced the data center industry like no other technology. Over the last few years, cloud computing has not only grown but become prevalent across the globe. While the cloud has gained immense popularity and is becoming the first choice for most data center applications, it can be made even stronger with the assistance of colocation. 

Colocation, in itself, brings several benefits to the table, including the ability to own infrastructure, have complete control over hardware and ensure greater cost of ownership over the long term. 

Organisations often face the issue of deciding between colocation or cloud data centers. While both have their fair share of benefits, you might have to ask yourself crucial questions relating to security requirements, data center architecture and which environment you think works best.

When Should Organisations Consider Colocation?

The colocation data centre industry is estimated to have grown at a CAGR of 22% during FY13-14 to FY18-19 with industry revenue estimated to be US$ 1.0 billion. Source: JLL Report

The most significant advantage of colocation is the fact that organisations have the opportunity to own, use and maintain their equipment in a shared space. 

This enables organisations to benefit due to complete control over equipment while sharing the cost of cooling, communication, power and data center floor space with other companies. 

The control and management of equipment (servers, storage, switches and software) remains with the organisation. Hence, colocation proves to be a viable option to store sensitive data that is governed by strict regulations.

A colocation model is also a practical option for businesses that need to augment the capabilities of their current data center. It ensures significant savings as organisations don’t need to invest in building new data centers from scratch. This model is suitable for organisations which have recently invested in hardware and are looking to expand the capabilities and rack space of their current data center.

Some of today’s colocation data centers offer a host of services; from managed IT to the hybrid cloud. They can also provide businesses with higher power density, which is critical for quickly scaling and supporting new technologies. Some data center colocation providers even offer a direct connection to the top public cloud providers such as Google Cloud Platform, Amazon Web Services (AWS) and Microsoft Azure.

When Should Businesses Consider the Cloud?

Cloud data centers offer the advantage of anywhere, anytime accessibility and are incredibly agile; reducing or increasing capacity as per organisational requirements. They also follow a pay-as-you-go model. Thus, the cloud is a perfect match for data that needs to be scaled up and down as per business needs. For example, for industries like e-commerce which witness significant peaks and trough periods, the most beneficial and cost-effective hosting model is a cloud. 

Cloud data centers also prove to be feasible options when an application needs to be accessed from multiple locations. Getting swift and easy access to business insights or crucial data with the help of analytics and dashboards is a significant benefit of using the cloud. It offers highly scalable solutions without massive investments relating to infrastructure. Cloud is also suitable for businesses that are looking to benefit from their ability to launch applications at a speed that matches business demands.

An Ideal Mix of Colocation and Cloud

The real opportunity for businesses lies in getting the perfect mix of colocation and cloud for different workloads. Organisations should arrive at the ideal combination after analysing workloads based on various parameters. 

For instance, due to performance demands, platform compatibility and licensing constraints, some workloads cannot be moved to the cloud. For such data, colocation and shared hardware is a viable option. 

Other workloads that are not bound by regulatory requirements or frequent updates can be hosted on the cloud. As stated earlier, workloads that need to be scaled instantly, or require increased agility and flexibility would also benefit from the cloud model.

E.g. A bank can store its non-customers identifiable data on the cloud and also leverage colocation server hosting for critical and sensitive customer data. This configuration is ideal as the bank can ensure a dedicated platform for business-critical workloads with security and total control of infrastructure. At the same time, it can tap into the always-on advantage of the cloud. 

Colocation server hosting works exceptionally well with a multi-cloud strategy. By adding multiple clouds to the mix, organisations can further benefit from the flexibility of choosing the right cloud for the right workload. Making use of colocation services and cloud together can assist organisations in achieving a truly hybrid infrastructure. 

According to JLL’s 2020 report on the Data Center Industry, multi-cloud and 5G adoption will reshape data centre landscape and force providers to adopt new ways of remote power monitoring and utilising alternative cooling methods. Source: JLL Report

At Legrand, we have an array of world-class facilities, measurable SLA’s and advanced security and support. 

Whether it’s for enterprise, colocation, or cloud, Legrand offers the perfect power distribution and monitoring solutions for mission-critical environments. Known for their reliability, flexibility and efficient design, our products have earned industry-leading roles.

Learn more about our data center solutions here: https://www.legrand.co.in/data-center-management/