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Concept for new trends showing a hand moving forward a yellow arrow on a wood cube leading the way for a set of cubes with blue arrows following behind on a wooden table

Businesses continue to shift away from costly and time-consuming, on-premises solutions in favor of colocation services. By choosing colocation, a business is able to rent the physical space, power, redundancies, and cooling needed to house their own hardware from a provider, all while continuing ownership and management of their equipment.

While colocation isn’t considered “Cloud”, it’s a solution that still offers huge advantages to the right business in terms of time, money, and physical space savings. Whether you’re currently colocating or looking to make the switch, we’ve gathered four key colocation trends for you to consider when creating your own IT strategy.

1. Network Agility Will Be Pushed to Keep Up

Growth demands on networks are high and this pressure will only continue thanks to “the advent of 5G, increasing cloud maturity, and the explosion in numbers of IoT devices,” explains Hosting Journalist. While network agility is more important than ever, it’s equally as important to choose a colocation hosting provider with a network that can keep up with the pace of demand.

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2. Colocation Will Be Core to Hybrid Cloud

Hybrid Cloud solutions are on the rise, explains Data Center Knowledge, which isn’t surprising considering that Hybrid Cloud solutions offer increased flexibility and efficiency for businesses by integrating the use of private cloud and public cloud solutions. Colocation services will rise in use alongside Hybrid Cloud as businesses seek a cost-effective solution to house their private cloud solutions.

3. Evaluating Providers Will Go Beyond Cost Calculations

It’s already widely recognized that colocation services offer huge cost savings. Now, Forbes explains that businesses will look beyond that established fact when choosing a provider to evaluate how a provider will help them improve efficiency and capacity. It will become increasingly important to ask, “Which provider will give me an edge as a business?”, and “Which provider will work personally with me to create a custom strategy for success?”

Server control panel hosting software vector illustration for colocation services

4. Advanced Security Will Be Non-Negotiable

With today’s ever-increasing cybersecurity threats, security and compliance are on everyone’s minds. Choosing the right colocation services provider will be essential to ensuring you have top-notch security that can stand up to the threats. Businesses will look for a provider’s ability to offer advanced security features including virtual security, redundancy, compliance with industry standards, and physical security measures such as registration and biometric access.

Interested in colocation services?

Do you want a colocation hosting provider you can trust, that will grow with you as a true partner to your business? LightBound’s colocation services can help make your life simpler and less stressful, offering Choice Network, custom Hybrid Cloud solutions, compliance and security you can count on, and a true interest in the success of your business.

We’ll sit down with you one-on-one to ensure a successful enterprise strategy and you can rest assured knowing we’ll be there for you whenever you call. Contact LightBound today to get your questions answered and learn from our experts what a colocation site can offer your business.

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Cloud Computing Concept with three clouds designed technologically in appearance

Have you ever wondered what the difference is between “Cloud” and “data centers”? What about Public Cloud, Private Cloud, Hybrid Cloud, insourcing, outsourcing, and colocation services?  

When researching cloud computing options for your business, it’s important to know specifically what you are comparing when it comes to these often-confused terms. In this blog, we explain what “Cloud” and “data center” refer to specifically and the differences in how each cloud computing option serves your business.

Are You Talking About “Cloud” or “Data Center”?

When talking about Cloud, it’s a reference to cloud computing, which is the delivery of computing services over the Internet. Types of cloud services include infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS). IaaS is further subdivided into Private, Public, and Hybrid. Cloud services come in different shapes and sizes, but most are highly scalable, handled by your provider, and you only pay for what you need when you need it.

Where it can get tricky is understanding the three models by which cloud computing is deployed: Public Cloud, Hybrid Cloud, and Private Cloud.

Public Cloud is the most commonly used deployment of cloud computing, where a provider manages and maintains your hosting solution for you. When people simply speak of “Cloud,” they most commonly mean this kind of outsourcing to a provider. The key to Public Cloud is that the infrastructure resource pools you subscribe to are shared by other companies. None of the resources are yours entirely or discretely in terms of deployment.

If you are talking about Private Cloud, a hosting provider still provides and manages the infrastructure, but that infrastructure is dedicated to you. It’s your dedicated resource pool, or at least most of it. You may share CPU and memory, but the storage allocation is typically on a separate SAN dedicated to you.

There’s also a combination of both Public and Private Cloud: Hybrid Cloud. Hybrid Cloud allows a company to utilize both cloud computing methods as needed for a more custom solution.

On the other hand, if you’re talking about a data center, this is insourcing. Many people call this Private Cloud, but that’s incorrect. You own the data center, the infrastructure and likely your staff manages everything. Any virtualization that takes place is simply your company buying software and virtualizing the infrastructure you own. This deployment is very traditional in every way. Insourcing is called as such because your company either capitalizes the elements or leases some of them, but it’s highly capital intensive. It’s not technically Cloud, because Cloud always refers to outsourcing.

What about colocation services? The term Colocation refers to a commercial datacenter. You are essentially leasing data center space, power, and cooling from a company that owns and manages the data center. The “co” in colocation services refers to the fact that other companies put their servers and infrastructure in the same building. That infrastructure is typically housed in separate, locked cabinets or cages dedicated to your company’s infrastructure, but you share the power, cooling and other building infrastructure.

Letters "V" and "S" written on two seperate black cubes on a wooden background with the left side behind the V colored turquoise to show the concept of comparison

The Key Differences Between Hosting Your Own Data Center and Going to the Cloud

When comparing insourcing versus outsourcing to a provider, how do you know which solution is best for your business? Compare the key differences between hosting your own data center on-premise and seeking out a cloud services provider:

Insourcing with an on-premise data center:

  • Slower time to market
  • Lacks scalability and flexibility
  • Physical and geographical constraints
  • Fine-tuned control of, and access to, your environment, security, and data
  • Increased responsibility and overhead to keep your business operations running smoothly
  • Difficult to achieve 24/7 monitoring by on-site staff
  • Increased risks, unless you are experienced with industry regulations and handling disaster recovery (DR)
  • Offers no geographic separation for mitigating disaster and operational risks
  • 4-5 times more expensive than outsourcing, assuming you have all the talent and expertise in-house to make it work

Outsourcing to a cloud services provider:

  • Faster time to market
  • On-demand scalability and flexibility
  • Independence from physical and geographical constraints
  • Relinquishing some control of your environment, security, and data
  • You can focus on your core business without the distraction of supporting a non-core business expense
  • Provider can handle 24/7 monitoring for you
  • Your provider’s expert staff should be experienced in industry regulations and handling disaster recovery (DR) to reduce risk
  • Provides better geographic separation for mitigating disaster and operational risks
  • Significant cost savings and conservation of capital, only paying for the services you need

Looking for another option?

The benefit of choosing Hybrid Cloud is it allows you to have continued control over critical data with Private Cloud infrastructure while leveraging Public Cloud services for non-sensitive data.

Having a colocation site can serve as a beneficial compromise between insourcing everything and passing off responsibilities to a provider.

3D illustration of server room in data center full of telecommunication equipment as a concept for colocation services or cloud computing technology

Which Option is Right for Your Business?

Hands down, it’s almost always a better idea to outsource data center services thanks to several financial and functional benefits. At the very least, if you still want to buy your own equipment, virtualize, and staff for the management of your own infrastructure, you can still leverage a commercial colocation data center facility to house all of your infrastructure for you in a professionally maintained environment with colocation services.

Long-term, it rarely if ever makes sense to build and maintain your own data center. There are some exceptions, for instance, if that’s your main business, you have a very unique circumstance, or you have an abundance of capital you don’t know what to do with.

Otherwise, you’ll want to seek out a trustworthy cloud services provider like LightBound, who will be a true partner to your business and ensure an easy and pain-free transition to Cloud. Contact LightBound today to learn more about your options for harnessing the power of Cloud and get answers from our experts about any cloud computing questions you might have.


You’ve probably heard the terms “Cloud” and “datacenter” solutions thrown around by providers to describe just about any datacenter or hosting service. This kind of generic phrasing may be more marketable for providers, but it’s important to know the nuances of each service option and how they work differently to serve your business.

This blog explains why two service options, IaaS and colocation, are often marketed interchangeably, what their differences actually are, and how they’re evolving together to create a hybrid future for Cloud.

What are Cloud Services, IaaS, and Colocation?

Cloud Services refers to any cloud-based resources a provider deploys and manages for you via the Internet on an on-demand, pay-as-you-go basis.

Infrastructure as a Service (IaaS) is a cloud computing service where a third-party provider purchases, installs, and manages datacenter infrastructure for you, allowing your business pay-as-you-go use of storage, networking, and computing resources via the Internet.

Colocation, also known as colo, allows your business to rent from a provider the physical space, power, redundancies, and cooling needed to house your own hardware. You own and manage your equipment.

IaaS is a cloud service while colocation is not. Colocation simply provides the space for you to house your own datacenter infrastructure such as routers, firewalls, servers, and storage. The differences between colocation and IaaS make it tempting to compare and generalize which service is better than the other, but the two are not interchangeable because the value proposition and capital cost (as well as manpower resources) are entirely different.

Determining whether IaaS or colocation is the best solution for your business all depends on your business’s unique needs. So why are providers referring to these separate services as though they’re interchangeable?

 

IaaS and Colocation: From Interchangeable to Integrated

When big names in the industry began using phrases like “datacenter solutions” to describe IaaS and colocation, it became a trend and the two services started to sound interchangeable. The generic phrasing helped providers improve the marketability of their non-Cloud services by associating them with the growing Cloud market.

While IaaS and colocation are not exactly interchangeable, we are beginning to see a future where these two services are combined in more than just name. By utilizing both colocation and IaaS together, businesses and providers are able to achieve more customized and beneficial solutions than either service could alone.

 

The Future of Cloud

The integration of both IaaS and colocation is certainly one definition of a “hybrid” solution and is what’s growing and shaping the future of Cloud. Essentially, it’s “some of yours and some of ours” from a provider’s viewpoint.

A hybrid solution is a cloud service that allows for greater flexibility and efficiency by integrating the use of private cloud and public cloud solutions. Colocating your virtualized environment in a datacenter is commonly referred to as private cloud, but your virtualized environment could also be located in your own datacenter. IaaS Cloud providers like LightBound offer private cloud resources that can also be meshed with your public clouds.

As we continue to move into the future, most larger companies will likely leverage hybrid solutions depending on their need for scale and time to market. Less on-premise solutions will be maintained in favor of moving to the Cloud, and the hybridization of colocation and IaaS will be a large player in what makes this transition possible.

Want more insight into IaaS, colocation, and hybrid solutions? Sign up today for a FREE, one-hour, zero-obligation tech assessment with LightBound. Our experts will meet with you in person to evaluate your business’s unique needs, answer questions, and help you discover the best fit for your business.