What is the difference between the Colocation Service and Cloud Hosting Services? 

If you are new to the world of hosting solutions and services, this blog is going to be really useful to you. Many people use the terms colocation and cloud interchangeably. But what they fail to understand is that there is a vast difference between their functionality. 

A colocation service facility operates like a data center where you can rent floor space or rack space. However, in a cloud service model, data centers offer computing services to the customers using the internet. 

In this article, we will discuss the basics of Colocation services and Cloud hosting services. We hope it helps you differentiate between the colocation services and cloud hosting services. 

Let’s get started!

Basics of Colocation Services 

In the colocation facility, the business keeps ownership of its server software and hardware while using the infrastructure and bandwidth of the third-party data center. Colocation provides the benefit of a shared infrastructure and bandwidth, with the company owning its own server. It comes with facilities like offering customers with rack space, floor space, cooling and connectivity. Moreover, there are some data centers that offer impeccable physical security as well. 

In many cases, colocation services include server management and maintenance contracts. These are usually separate services offered by the colocation facility for a monthly fee. These services are very useful when some companies cannot afford to send IT specialists to and from the colocation facility.

Benefit of Colocation Services 


The benefits of data center colocation can be seen in reducing onsite data costs such as capital investments in hardware, infrastructure and facility leasing. Sharing costs has many advantages, such as higher security and the ability to scale according to business needs.

Improved Security  

Businesses and consumers alike are concerned about data security. Companies can take advantage of colocation data centers to protect infrastructure with multi-layer security using IDS systems, encryption, firewalls, and other security measures. 


Colocation services offer businesses the flexibility to deploy new applications and provision rack space in the data center without worrying about infrastructure and support. Businesses can scale services as they need, allowing them to deploy new applications and create new IT infrastructure, as they need.

Basics of Cloud Computing

Over the last few years, cloud computing has grown rapidly in popularity and is almost synonymous with IT outsourcing. However, cloud computing is more than just renting out resources in a remote data center. Cloud providers offer managed services at a consumption-based price when using a public cloud. 

Cloud providers offer managed services outside of their own data centers, though the fact that they operate in a cloud provider’s data center does not disqualify them as public clouds. Whether a company provides managed services to multiple tenants is what defines them as a public cloud provider, not the location of its data center.

Benefits of Cloud Computing 

Cost savings 

With cloud computing, your company’s data will be accessible instantly, saving you time and money when it comes to start-up. Lastly, if you’re afraid that you’ll end up paying for features you don’t need or want, most cloud computing services are pay-as-you-go.


Upon rolling out a cloud-computing platform, you will be able to access all your company’s data easier, which will reduce time and money spent on starting a project. For those concerned with paying for features they do not need or want, many cloud computing services are used on a pay-per-use basis.


You can make information accessible for all employees, including professionals who travel, freelancers, or remote employees. With cloud hosting, they will be able to work from anywhere. Therefore, it is not surprising that companies that prioritize employee satisfaction enjoy higher employee satisfaction rates.

What are the similarities or differences between Cloud and Colocation? 

The decision between choosing colocation and cloud entirely depends on the needs of your business. In general, organizations may host most of their everyday processing systems on public clouds, but store their mission-critical databases on their own servers. Having the servers on-site would be costly and insecure. It is when a colocation facility becomes the best choice for businesses to house and maintain their vital equipment. 

As with off-premise computing, cheap cloud hosting and colocation service can offer significant IT savings over on premise alternatives.  The on premise alternatives are difficult and expensive to maintain. Nevertheless, where IT assets belong requires a greater degree of clarity. 


Both Cloud computing and Colocation Delhi NCR can benefit your business in their own way. It is up to you to decide which one will fulfill your business needs the best. So whatever decision you make, ensure that it is only contributing to the success of your business. Also, make sure you hire a reliable service provider. 

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