Why Colocation Delivers Greater Business Value than Hosting Your Own Private Cloud

colocation data center

According to Forrester: “Private cloud must include advanced virtualization, standardization, automation, self-service access, and resource monitoring if it’s to function as a true cloud service. As a result, private clouds aren’t easy or cheap for I&O leaders to build, and many private cloud initiatives have failed.”1

In fact, a survey of participants at a recent Gartner data center conference found that roughly 95 percent admitted that “something was wrong with their private cloud.”2

At the same time, IT organizations are under increasing pressure to innovate and drive business value.

But with the costs of building a data center at $100 to $300 per square foot, as Forrester suggests, building even a small 10,000 square foot data center can run up to $3 million and more.3 These days, just getting capital expenditures approved for a piece of IT equipment, let alone a data center, is a challenge.

Faced with shrinking budgets and demands for greater availability, IT organizations must take a hard look at their data center strategies and ask if hosting private clouds and on-premises data centers are delivering any real business value. If they’re not delivering as expected, then it may be time to re-think your data center and private cloud strategy.

IO colocation is one way to cut costs, gain efficiencies, deliver on-demand services, and provide your organization with a competitive advantage. It can also provide a failsafe on-ramp to the cloud, whether public, private, or hybrid.

Ask yourself these six questions as you begin outlining your data center strategy and determining whether hosting a private cloud makes the most sense for your business:

  1. What does it cost—both in terms of direct and indirect costs—to run your data center?
  2. What kind of security and compliance does your data center require…and how does that compare to your security posture now?
  3. What kinds of service levels can you guarantee your internal customers?
  4. How easy is it for you to scale to meet user and application demands?
  5. What kind of connectivity do you have in place to help you easily and smoothly connect to cloud services?
  6. How are you reducing your energy and water footprint?

At the end of the day, your data center strategy should enable business innovation, not get dragged down by high costs and inefficiency due to a less than ideal private cloud or on-premises data center.

Co-locating your data center within IO’s next-generation data center provides:

  • Cost savings – Industry-low PUEs and efficiencies of scale, density, and modularity can help make a build vs. buy decision a no-brainer.
  • Defense-in-depth security – Multi-layered physical security from the perimeter to the core—along with industry certifications for design, process, and safety—ensure that you can confidently meet security and compliance requirements.
  • Mission-critical reliability – Best-in-class data centers designed for concurrent maintainability, proven data center operators, compartmentalized state-of-the-art innovation, data-driven decisions, and service provider networks that follow industry standards all ensure high availability and reliability.
  • Massive scalability – Choose your data center footprint, and add the levels of resiliency, power and cooling, connectivity, and colocation services to meet your requirements. Then scale up with 5x higher densities, scale out as needed to accommodate growth, burst clouds on demand, and perform predictable capacity planning without waste.
  • Fast connectivity – Carrier-neutrality with free cross connects to hundreds of networks provide a secure on-ramp to public cloud services, such as AWS, Google, and Microsoft Azure.
  • Energy efficiency and sustainability –Low operating PUE leads to efficient energy and water usage maximizes sustainability—good for you, and good for the planet.

As a first step on your journey to the cloud, IO colocation offers powerful benefits—including an on-ramp to the cloud—and it can keep your organization focused on driving business value and innovation for your core business. Says Gartner: “By focusing on applications, workloads, risk and the short- and long-term needs of the business, a flexible data center strategy can emerge.”4

To see how colocation can be part of a robust data center strategy, contact IO to schedule a tour.


1“Predictions 2017: Customer-Obsessed Enterprises Launch Cloud’s Second Decade, Ten Key Developments In Cloud Computing Shape The Industry In 2017,” Forrester Research, 11/18/2016.
2“95 percent of private clouds ‘fail’ – Gartner,” DatacenterDynamics.com, 02/13/2015.
3“Build Or Buy? The Economics Of Data Center Facilities,” Forrester Research, 07/29/2011.
4“The Future of the Data Center in the Cloud Era,” Gartner ID G00276114, 9/22/2016.