Published On: Thu, Jun 29th, 2017

What is the Difference Between Colocation and Cloud Hosting? Which is Better for Your Wallet?

IT organizations are under pressure to innovate and drive business value, they’re increasingly forced to make the most of limited budgets. They are turning to the cloud and data center colocation to cut costs, deliver on-demand services, gain efficiencies, and provide the business with a competitive advantage. In this blog, you will learn about both type of web hosting: colocation and cloud hosting, so you can determine which one will offer the most benefits and best suit for your wallet.


Think of colocation as high-tech real estate, an outsourced data center space, where you can operate your company-owned software and hardware — hardened data center buildings, power redundancy, cooling redundancy, physical security, fire suppression, and access to telecommunications carriers are part of the real estate.

Web hosting

The following are the benefits of using colocation:

  • Reduction of IT Infrastructure, Capital Savings and Management Costs
  • Redundancy and Reliability
  • Power Capacity
  • Security and Data Protection
  • Increased Flexibility
  • Bandwidth
  • Scalability
  • 24x7x365 Expert Service and Support
  • Room for growth

The savings cost of the overall operation of your company is considered as the biggest benefit that colocation brings to your business.

Cloud Hosting

With cloud hosting, you rent the equipment, the space and the manpower to manage it and keep it running. No upfront capital costs are involved and services are delivered for a monthly fee. If you need more equipment or technology, just rent more.

The following are the key benefits of using Cloud hosting:

  • Fresh Software
  • Do more with less
  • Flexible costs
  • Always-on availability
  • Improved mobility
  • Improved collaboration
  • Cloud computing is more cost effective
  • Expenses can be quickly reduced
  • Flexible capacity
  • Less environmental impact

Colocation vs cloud hosting? Each offer distinct benefits, and functionalities, although the solutions were designed to meet multiple needs. Your business’s data management and infrastructure needs ultimately determine which hosting is more appropriate for your organization.