man looking at colocation data centre

If you are in the market for colocation, you will have seen advertisements for datacentres all around the country, or even internationally. Colocation, in essence, is making arrangements to house your hardware, software and data to a 3rd party datacentre. As you may already know, the expense of maintaining an IT infrastructure is significant and comes with many responsibilities such as security, climate control and maintenance. So where should your colocation datacentre be located?


When researching server hosting options for your business, you have likely found two key services:

  • Colocation – you supply and manage your server hardware which is installed in a datacentre. You pay for datacentre space, power and data, and usually incur high capital expenditure due to the upfront investment in hardware.
  • Baremetal servers – you lease hardware as well as datacentre space, power and data from a service provider. The hardware is managed for you and as it is leased to you, no upfront capital investment is required.

These services are very different, but in a bid to move towards digital transformation it can be difficult for SMEs to determine which approach is best suited for their business. Successful business leaders make decisions based on what will benefit their organisation over the medium and long term. It would not be wise to invest a significant amount of resources on something that does not yield a favourable return on investment, and the same applies to your business’ colocation strategy. 

But as the old saying goes, you can never improve on something that you are not measuring. In this article, we clarify the essential questions that decisionmakers should ask themselves when determining ROI (return on investment) for colocation, and whether a leased dedicated server is more appropriate.