Colocation Vs. On Premise Storage – Which One is Right for You? 

As your organization expands, so does your infrastructure. There will eventually be a time where you must decide, whether to keep your servers on-premise, or colocate them to a data center facility. According to BCC Research, the growing global demand for data storage is increasingly being served by colocation facilities. It has been determined that the industry will grow by 15.4% annually between 2016 and 2020, when it will be worth an estimated $54.8 billion.

In this article, we will discuss the advantages and disadvantages of on-premise storage and why utilizing a colocaton facility might be the right direction for your growing business. For a more in-depth look at both, request our Colocation vs. On-Prem Storage whitepaper below!

On-Prem. Vs Colocation

On-Prem Data Storage

On-premise data storage is another term for in-house servers. In most cases, these servers are housed in a dedicated facility, or for smaller businesses, are located in a very small room, or “server closet”, where a server or two are located. Businesses that utilize this source of data storage have full control of all their assets, personnel and priorities. Physical/network security is also a high priority for any business. In most cases, having on-premise data storage provides you the ability to custom-tailor your physical and network security to your exact needs. Having complete control of your data storage on-site also gives you the ability add to your space in increments.

Although, on-premise data storage has its advantages for those who want to be close to their infrastructure, it does also carry costly disadvantages. First and foremost, on-site data storage requires space and staff to properly function. Training and support for your staff, along with the need to acquire additional racks, PDUs, power and network connectivity when needed can take up a good chunk of your business’ IT budget and time. This can take time away from your business’ revenue objectives. Having your IT infrastructure on-premise poses a risk of natural disaster or utility outages that could compromise your business significantly.

Utilizing a colocation facility alleviates you of those risks by providing a safe, secure, and reliable environment that is built with all the necessary redundancies in place to stay online and accessible 24/7/365.


A business that utilizes a colocaiton facility will house their servers and devices in an off-site data center. Colocation facilities charge a monthly fee based on how much space and hardware your business requires. This fee includes additional services such as, network redundancy, security, backup power sources and a 24/7/365 support staff. The right colocation facility will also offer enterprise managed services, backup, disaster recovery, network security, and systems management. In most cases, colocation utilizes the benefits of backup and redundancy, which seem to be business’ biggest upside to moving to a facility.

Leasing space in a colocation facility is much more cost effective than building out in-house data storage. Colocation facilities lowers your cost of power, cooling, bandwidth and security, in addition to the cost of on-call IT experts. Continuity is of utmost importance when it comes to your data. In the event of your physical location being compromised of theft, fire, or any other natural disaster, colocation providers offer multiple sites for disaster recovery, redundant power, and internet connectivity. Most on-premise data storage sites lack N + 1 power supply and backup. This requires a business to have a spare on-site in the event of a power failure. A colocation facility eliminates the need to build and maintain your own redundant environment.

Interested in learning more about the differences between colocation and on-premise data storage? Request our whitepaper below to learn how colocation from ColoCrossing can best benefit your business and tailor your IT infrastructure needs.

Why Choose ColoCrossing for your Colocation Needs?

ColoCrossing has colocation data centers in 8 major markets including Buffalo, San Jose, Seattle, Atlanta, Dallas, Los Angeles, New York City, and Chicago. Our data center facilities deliver the network redundancy, security, backup power sources, and 24/7 support staff your business requires. With ColoCrossing’s team on your side, your business will experience greater uptime and costs savings than if you had an in-house server.

Have questions? Get in touch with our sales team by email at or give us a call at 1-800-518-9716.


Daniel Spritzer
Daniel Spritzer

As a Marketing Specialist for ColoCrossing in Buffalo, NY, Daniel has expertise in Social Media, SEO, Email Marketing, Inbound Marketing, and Content Marketing. He has a passion for building relationships with people as creative as him.