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Why use colocation hosting?

The CIO’s Dilemma: On-Premise, Colocation, or Public Cloud?

Most CIOs today are deeply worried over the recent technological dilemma imposed to them. Companies of all sizes are thinking about the function of cloud computing within their IT approach and how it will change how they run companies and their IT operations. Nebulai decided to write this guide to clear up some doubts and pave a path for decision makers to begin embracing the possibilities.

On-Premise: Relates to some software technology operating in the organization’s physical premises. In other words, software technology located in the data centers of the company.

colocation hosting

Why businesses use this model:

One rationale was that on-premises deployments have been”de facto” deployment model for many organizations for the last few decades. There was no other option. Additionally, the ability to control their IT operations was liked by many companies.

Why businesses do not utilize this version:

Even though having control over their IT operations was a fantastic benefit for a few, it was not enough to make sure that a company would effectively run their IT infrastructure. Companies started to discover that scaling their applications required IT administrators to predict demand which led to resource. Even if IT administrators were capable of predicting future demand, they had a great deal of challenges new infrastructure in time for the business to rapidly respond to customer demands. Additionally, operate and companies needed to purchase datacenters in geo locations which added much more complexity that is logistical. Thus, many organizations began to try and find ways outsource the operations of a number of their infrastructure layers into other third party providers or to make things more effective. A colocation hosting facility provides management for the actual state (datacenter building), cooling, electricity, racks, electricity, internet support, etc.. Everything would be then managed by organizations in the racks and up.

Why businesses use this version:

Using a colocation facility helped organizations to have additional datacenters without having to invest in all the needed components up front. Trading capital costs for operating expenditures. These organizations still had complete responsibility of availability and the IT operations of the software deployed in these colocation facilities. The overall IT services accessibility did improve but it didn’t solve the challenge of needing to trust the old on assumption model for the IT infrastructure components.

Why firms don’t use this version:

Colocation facilities nevertheless had the same constraints as the on assumption model, it just reduced the responsibility and confined the various limitations to anything under the racks. Therefore, manage the provisioning of IT infrastructure, IT administrators needed to forecast need, and manage the availability of their software. The service provider then will rent storage tools, networking, and calculate charge them typically on a billing model and to companies seeking to leverage their cloud offerings that are public.

Why companies use this model:

Public clouds allow organizations to assign the management of the majority of the IT infrastructure into a service provider and reduce the complexity of handling multiple datacenters, colocation facilities, etc.. In any case, delegation of responsibility, associations may benefit from the experience of these service providers and get extra IT provisioning benefits such as the ability to set up a server in minutes, shut down servers if not using them without being charged for themscale across multiple geo places without needing to purchase or operate multiple datacenters, leverage technologies which would normally be available to large companies with heavy investments in IT infrastructure, etc..