Published 09. 06. 2022.

Deciding between inhouse servers and colocation

In today’s digital age, businesses rely heavily on technology to operate efficiently. As a result, Chief Technology Officers (CTOs)  and Chief Information Officers (CIOs) are faced with the decision of whether to use in-house servers or colocation. In this article, we will explore the benefits of colocation and why CTOs should consider it as their preferred choice.

In-house Servers

In-house servers refer to servers that are owned and operated by the business within their premises. They require a dedicated IT team to manage and maintain the servers, including hardware upgrades, software updates, and security measures.

Benefits of In-house Servers

  1. Control: With in-house servers, businesses have complete control over the servers and the data stored on them.
  2. Accessibility: In-house servers provide businesses with easy access to their data and systems, making it easier to manage and control.
  3. Customization: In-house servers allow businesses to customize their server infrastructure to meet their specific needs.


Colocation refers to renting space in a data center to house servers and other networking equipment. The data center provides the infrastructure, including cooling, power, and security, while the business provides the servers and networking equipment.


Benefits of Colocation

  1. Security: Colocation offers a more secure environment for data storage than in-house servers. Data centers are equipped with advanced security measures to protect against theft, data loss, and other threats.
  2. Scalability: Data centers offer businesses the flexibility to scale up or down their IT infrastructure as needed without incurring additional hardware and maintenance costs.
  3. Cost-Effective: Colocation is a cost-effective solution for businesses, as they can avoid the significant upfront costs associated with building and maintaining an in-house data center.
  4. Reliability: Data centers provide reliable connectivity, power, and cooling to ensure that businesses’ servers and networking equipment operate efficiently.

Why CTOs should choose Colocation

  1. Increased Uptime: Colocation provides businesses with an increased uptime, ensuring that their systems and applications remain available to their customers and employees.
  2. Disaster Recovery: Data centers offer disaster recovery services, ensuring that businesses can recover quickly in the event of a disaster.
  3. Reduced IT Team: Colocation reduces the need for a dedicated IT team, freeing up resources to focus on other critical business areas.
  4. Compliance: Colocation provides businesses with a compliant environment for data storage, meeting regulatory and industry standards.


In conclusion, while in-house servers offer businesses complete control and accessibility, they require significant resources to manage and maintain. Colocation offers businesses a more cost-effective and reliable solution, with advanced security measures, scalability, and compliance. CTOs should consider colocation as their preferred choice to meet the growing IT needs of their business.

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