Rethinking IT infrastructure

Many organisations seek IT infrastructure that balances the flexibility of the cloud with the stability and control of on-prem setups, while also offering scalable connectivity. 

As a result, data centre colocation has emerged as an adaptable, cost-effective solution that supports their growth and operational resilience without the burdens of maintaining an on-site facility. In fact, more than half of organisations now prefer colocation services over on-premises solutions, according to our Vision 2030 research. 

Will colocation take the starring role in the future of IT infrastructure? Let’s take a look.

 

What is colocation?

Data centre colocation is a service for organisations that rent out rack space to store their servers and other IT hardware necessary for business operations. It also lets them leverage the connectivity and reach offered by a colocation data centre provider, with on-site features such as cooling, networking equipment, internet bandwidth, power and physical security.

Learn more about how colocation works from our Knowledge Base article.

 

Moving beyond ‘cloud-first’ approaches

While cloud computing offers flexibility, it isn’t always the best fit for every workload. Many businesses are shifting from “cloud-first” to “cloud-selective” approaches, recognising that cloud-only environments can introduce unforeseen complexities and costs.

Colocation steps in here, providing a flexible alternative that blends the best of on-premises control with cloud-style scalability, all while offering greater predictability in costs. By offering dedicated physical space for companies’ critical infrastructure, colocation supports businesses looking to balance control, cost-effectiveness, and growth.

 

The financial appeal of colocation

Colocation eliminates the need for extensive on-site data operations, cutting costs associated with power, cooling, and specialised staffing. This setup also minimises the risk of downtime by ensuring Service Level Agreements (SLAs) for uptime, which translates into fewer interruptions and lower downtime-related costs.

Additionally, colocation offers a cost-effective solution for businesses with predictable, stable workloads. By reducing dependence on cloud for these applications, companies can avoid the high costs of scaling cloud infrastructure to meet growth. Data centre operators like Telehouse also use hedging strategies to keep energy prices stable, providing a transparent and reliable pricing structure that shields businesses from price fluctuations.

 

Other advantages of colocation

Below are three key advantages of choosing colocation:

  • Performance – For industries like finance, where real-time data access is essential, colocation offers consistent low-latency connections. These high-performance connections are particularly valuable for critical applications that demand uninterrupted access and reliability. In addition, colocation facilities provide on-site engineers who can promptly address any technical issues, ensuring faster response times than cloud services can typically offer.

 

  • Compliance – Colocation’s role in regulatory compliance is another advantage. Many companies must process data within specific geographic regions, and colocation facilities are managed by teams who specialise in navigating complex compliance standards. This in-built compliance expertise helps companies adhere to data sovereignty laws without having to invest in external advisors. 
  • Security – Colocation’s emphasis on control also benefits businesses with strict security requirements. Facilities house trained engineers who monitor systems closely, ensuring strict adherence to security protocols. Choosing a colocation data centre provider like Telehouse, which has the highest levels of building security, electronic access management, proximity access control systems and CCTV in London, can ensure the safety of your critical data.

 

Colocation as a strategic asset

In today’s IT landscape, colocation is playing an increasingly important role in helping businesses stay agile, secure and cost-effective. By providing a strategic balance between cloud and on-premises control, colocation allows companies to meet modern demands without the challenges associated with legacy infrastructure or full cloud dependence.

For organisations looking to stay ahead, colocation offers a pathway to an adaptable and resilient IT strategy. One that combines scalability with the security and compliance required to compete in a data-driven world. As more companies recognise colocation’s benefits, this approach is ready to take on a starring role in the future of IT.

Learn more about Telehouse’s colocation data centre services and speak to one of our expert team today to find out why we’re London’s leading colocation providers.