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BLOG: Why businesses should consider colocation as a complement to cloud

Martin Bishop | Feb. 7, 2014
Whether a company should go for colocation or cloud depends on its business objectives

On-demand scalability
With the business landscape constantly changing, often businesses experience a spike in demand that requires scaling their operation to effectively meet to the demand. If the existing in-house infrastructure is already operating at full capacity, scaling is not possible, resulting in inefficiency and delayed response time and it makes little business sense to expand the in-house data centres to address temporary spikes in demand. Conversely, if for most of the year the IT infrastructure is operating under capacity, it leads to a waste of resource and budget. Colocation provides an avenue for businesses to scale up temporarily to meet unexpected surges in demand by purchasing additional rack spaces for a certain period of time.

Colocation or cloud?
At Telstra, we see colocation as an enabler to cloud and we see both solutions to be complementary to each other - which is why colocation is offered at every cloud node Telstra owns. Both colocation and cloud are cost-effective alternatives to in-house hosting services. Whether a company should go for colocation or cloud depends on its business objectives - colocation offers better control of where data is stored and how it is managed whereas outsourcing to a third party cloud vendor frees up additional resources to focus on generating other aspects of business value. If a process is significantly high risk, where any compromise of data or downtime will cost the company, it makes more sense to opt for colocation as the opportunity cost is high.

Martin Bishop is Head of Network Applications and Services Portfolio at Telstra Global.



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