Build vs Buy: The Case for Colocation

The Case for Colocation

IDC predicts that, by 2017, 60% of the datacenter-based IT assets that organizations rely on to conduct business and deliver services will be in colocation, hosting, and cloud data centers.

Why? According to Gartner:2

“A growing proportion of enterprises are hesitant to commit long-term capital funding to data center facility investments, particularly when faced with the probability that workloads will move to the cloud…Organizations faced with the need for additional data center resources must choose whether to retrofit existing facilities, build new or utilize third-party space…”

Making a build or buy decision isn’t an easy one, and performance, availability, and security traditionally drive these decisions. But, as Gartner goes on to say, “…other services (such as interconnection capabilities and managed services) enable colocation to play a more strategic role in global infrastructure delivery and network design.”2

You can start small by running selected workloads in the cloud and/or performing whole site backups and creating redundant sites to reduce both the IT footprint and operational costs. Alternatively, if your company already owns the equipment or is simply undergoing a data center refresh, colocation can be an excellent option.

While these approaches allow you to test the colocation waters, so to speak, Gartner suggests that “tactical colocation sourcing may address obvious short-term needs, but it risks missing out on valuable long-term modernization opportunities needed to deliver IT strategy.”2

It goes on to say that infrastructure and operations leaders should “build a clear picture of future intentions for data centers within the enterprise, so that colocation offerings can be contextualized within the ‘bigger picture’ of business goals, and technology strategy.”2

Read more in the Gartner report “Best Practices for Selecting a Colocation Provider.”

IO takes it to the next level to deliver the physical infrastructure, network connections and security needed to power your business success. This unique data center as a service (DcaaS) at scale delivery model takes the risk out of the build decision, giving you the ultimate flexibility to right size to your current needs.

IO is expert in supplying the physical plant and support infrastructure needed to run the data center—and in finding the most reliable, cost-efficient way to do so. Options for power, cooling, and connectivity allow freedom of choice and economies of scale drive costs down.

IO is also committed to being carrier-neutral, so that you can choose, change, or channel your Internet connection—without disruption to your data center. Choose carrier interconnections to maximize speed, provide the best value, and enable confidence with a trusted partner.

  • IO’s cloud-connected data center provides the ultimate flexibility to implement a hybrid, private, or public strategy.

Download IO’s comprehensive data center checklist with more than 120 criteria to help you evaluate data centers and colocation providers. Or, schedule a tour at one of IO’s data centers and see for yourself what makes IO different.

“IDC Reveals Datacenter Predictions for 2015,” IDC press release, 12/09/2014.
2 “Best Practices for Selecting a Colocation Provider,” Gartner, #G00326123, 03/28/2017.


DISCLAIMER: This document is for reference purposes only. The information contained herein should not be relied on and neither IO Data Centers, LLC nor any of its affiliates makes any warranties or representations as to its accuracy.