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Factors to Consider When Choosing Between Colocation and Cloud Services

shutterstock_328634297When it comes to storage options, colocation and cloud services both offer tremendous cost savings for budget-minded businesses in need of an affordable and effective data storage solution. However, there are a number of pros and cons for businesses to consider as they determine which solution offers the best fit.

Consider Talent and Equipment

Businesses that already have considerable IT talent may consider the choice between colocation and cloud hosting from a cost/benefit point of view. Businesses with the skill set and budget to purchase and maintain their own equipment may see colocation as a better fit for their needs. The cost of leasing shared data center space may be more reasonable than building and maintaining in-house server space, especially when power and cooling costs are factored in.

On the other hand, businesses with a limited IT talent pool may find colocation to be a tremendous burden on staff and a drain on resources. In cases like this, cloud hosting may prove to be a more attractive option.

Room for Growth

As long as a business has the equipment budget and IT talent, colocation can offer an extremely scalable option for quick growth. However, some businesses may find it more financially advantageous to purchase additional storage in smaller increments from a cloud hosting provider.

Although the majority of cloud providers are flexible enough to accommodate fast growth among businesses, others may assess additional fees and penalties for clients who scale up heavily.

Compliance Requirements

Businesses that are required to comply with HIPAA, SOX, and other regulatory requirements should consider the risks of non-compliance when choosing between colocation and cloud hosting.

Colocation places the burden of compliance on internal IT staff, whereas most cloud providers are experienced with handling compliance issues. Colocation can also expose businesses to compliance-related liabilities, which could reach up to millions of dollars in penalties and lost business in the wake of a failed audit.

Assistance and Support Options

Support options for colocation and cloud hosting services can vary among providers. Some offer genuine 24/7/365 service, while others offer support that’s strictly limited to business hours. It’s crucial for businesses to consider their support needs before committing to a particular provider.

Some colocation providers offer “a la carte” services that provide on-demand assistance with installation, maintenance, and upgrade tasks. These services can be advantageous during periods when internal IT staff is unable to attend to those tasks.

For businesses interested in colocation, on-demand support services can be affordable for intermittent periods. However, heavy reliance on on-demand support could result in costs that exceed that of a hosted cloud.

Uptime Requirements

When it comes to near-100% uptime, self-managed hosting options may not offer the best choice unless the client has the IT experience to enforce data availability. Cloud hosting providers, on the other hand, can offer uptime guarantees that ensure continuous access to critical data. Businesses should make sure that their chosen provider has an established track record of meeting or exceeding their stated uptime guarantees prior to finalizing a service level agreement (SLA).

In the face of tight budgets, businesses are under pressure to keep their IT infrastructure intact using existing resources. These and the above mentioned issues may factor into a company’s choice between colocation and cloud hosting.

Making the Right Choices in the Cloud

shutterstock_328634297While it may be true that cloud services are not the perfect solution for all business computing needs, almost every business has at least some applications for which cloud is, indeed, the best solution. Premises-based solutions will continue to become less prevalent as time goes on. The focus of cloud services on scalability, efficiency, and flexibility is the primary driver of the move away from premises-based computing.

The biggest problem with traditional solutions is that in order to maintain capacity for peak loads, it’s necessary to maintain a great deal more computing resources than are needed the rest of the time. Overspending becomes a necessity. There is also the onerous process required to upgrade server capacity or other infrastructure.

Cloud solves these problems admirably by placing the onus for hardware purchasing and maintenance on someone else’s shoulders. There are three ways in which cloud services can be deployed, each serving a slightly different set of needs.

SaaS

Software as a Service (SaaS) involves the hosting of individual business applications in the cloud, to be accessed remotely by end users. The business has no control over the environment in which the application ‘lives’ under this model.

PaaS

Platform as a Service (PaaS) provides all the infrastructure, management, development, and deployment tools a business needs to create and maintain their own software applications.

IaaS

Infrastructure as a Service (IaaS) consists of hardware and other components (networking, storage, servers, and software) and gives businesses more control over the system than SaaS.

One of the most difficult aspects of moving to the cloud is not deciding what type of service a business needs, but rather what parts of the business can best utilize the cloud in the first place.

What Not to Move

Business critical applications should certainly not be among the first to transition to a new environment. Nor should any applications where performance is touchy, or that require intensive number crunching. Any system with a high level of complexity and tight integration with multiple apps should also probably wait until the organization has more cloud experience.

What Should be Moved

Non-critical systems are a good first step, including departmental applications where a smaller number of people will be affected by growing pains. Email servers and other well-established and easy to maintain apps are also likely candidates.

Other Considerations

Before making the jump into the cloud, it’s important to consider a few other details:

  • What are the company’s requirements for a service level agreement (SLA)?
  • Is a service provider able to provide the required level of security with the type of cloud model that fits the business’s other needs?
  • Do any of the apps that will be hosted in the cloud have special requirements?

The cloud isn’t more difficult to understand than on-site resources; it’s the same, only different. The differences can, however, complicate individual situations and turn wrong decisions into costly mistakes. Contact us for help simplifying the complicated.