According to 451 Research, the global colocation and wholesale datacenter industry made $38.2 billion by the end of 2018, and is projected to make more than $54 billion by the end of 2023. These are impressive numbers for an industry some consider to be dying due to the rise of cloud-based web hosting. Even in this day and age, colocation still has its own appeal, especially because colocation providers have shown their experience and skill at providing effective infrastructure for their clients.
The infrastructure provided by colocation has given clients easy access to power, cooling, security/monitoring, and reliable connection. Furthermore, colocation provides clients with much more control over their assets at the data center, because the clients still own the hardware and the software that their servers are running on. In contrast, cloud hosting does not allow companies to control their servers’ hardware and software, which are managed by the hosting provider.
Colocation can also be less expensive than cloud computing in the long run. The start-up costs for colocation will likely be more expensive than cloud computing’s start-up fees, but as time goes on, prices for cloud computing will fluctuate based on the amount of storage you need for your data. These prices can get very costly if you find yourself needing more storage than you previously had. You won’t have to worry about this with colocation, since you are paying for space and a reliable infrastructure, rather than paying to use your provider’s hardware and software.
There are pros and cons to both options, but no matter which option you choose, Rack Alley can help you find what you need. Their data center is located in Los Angeles, and they provide LA colocation, cloud hosting, and dedicated servers.