10 Reasons Why You Should Consider a Colocation Facility vs. Self-Hosting
10 Reasons Why You Should Consider a Colocation Facility vs. Self-Hosting
Choosing between self-hosting IT infrastructure and moving to a colocation facility is a critical decision for any business. While self-hosting might seem attractive at first, it often comes with hidden costs, higher risks, and long-term limitations. In contrast, colocation at Data Holdings provides a secure, reliable, and scalable foundation for your IT systems. Here are ten reasons why colocation is the smarter choice.
1. Cost Efficiency
Building and maintaining an on-premise data center requires significant capital investment in construction, hardware, cooling, and physical security. With colocation, businesses avoid these upfront costs and instead pay predictable monthly fees. This model makes enterprise-grade infrastructure more accessible, reducing financial risk and avoiding costly surprises tied to equipment failures or facility upkeep.
2. Enhanced Security
A colocation facility like Data Holdings provides facility-level security that most businesses cannot replicate on-premises. Features include biometric access controls, 24/7 on-site staffing, video surveillance, and rigorous compliance standards such as SOC 2, HIPAA, PCI DSS, and NDAA. Self-hosted environments often lack the physical safeguards and governance documentation needed for audits or regulatory requirements.
3. Reliable Uptime and Redundancy
Self-hosted environments are more susceptible to outages resulting from power failures, cooling issues, or hardware degradation. Data Holdings operates with Tier IV power architecture, including triple UPS systems, indoor generators, and redundant network paths. This infrastructure supports 100% uptime, ensuring your systems remain accessible even during unexpected disruptions.
4. Scalability Without Hardware Investments
Growing businesses require more computing power, storage, and connectivity. Self-hosting often means expensive upgrades, new construction, and higher energy bills. With colocation, organizations can scale up by adding cabinets or racks inside an existing footprint, eliminating the need to reinvest in physical infrastructure.
5. Expert Support and Facility Management
With self-hosting, your IT staff must manage not only applications but also building maintenance, cooling, and electrical systems. At Data Holdings, our facility is staffed 24/7 to monitor power, cooling, and security systems. Colocating in a professional facility frees your IT team to focus on strategy and innovation, rather than facility upkeep.
6. Energy Efficiency and Sustainability
Operating a self-hosted server room can be inefficient and costly. Data Holdings is a LEED Gold-certified data center featuring closed-loop, zero-water cooling and airside economizers. These systems reduce energy consumption, lower operational costs, and align with corporate sustainability goals.
7. Disaster Recovery and Business Continuity
Data Holdings’ Midwest location offers geographic stability, far from hurricane zones and seismic fault lines. Combined with redundant power and connectivity, our facility ensures your business can maintain operations during regional outages or severe weather events. Self-hosted setups, on the other hand, are far more vulnerable to local disruptions.
8. Compliance and Regulatory Support
Maintaining compliance is costly and time-consuming for in-house environments. At Data Holdings, our audited facility-level compliance certifications help organizations meet regulatory requirements. We provide the secure environment and documentation auditors expect, helping reduce the burden on your IT and compliance teams.
9. High-Speed, Redundant Connectivity
Unlike self-hosted environments that rely on a single ISP, Data Holdings is a carrier-neutral facility with fiber from every major provider in the region, each maintaining a point of presence within the data center. This ensures faster speeds, built-in redundancy, and more options for businesses that require reliable, high-performance connectivity.
10. Focus on Core Business Initiatives
With colocation, businesses shift their focus from managing facilities to driving growth. Instead of worrying about electrical systems, HVAC, or internet outages, IT resources can be dedicated to application performance, digital transformation, and strategic innovation. Colocation creates the foundation for IT teams to thrive.
Make the Smart Move to Colocation
The choice is clear: colocation at Data Holdings provides businesses with a secure, scalable, and cost-effective solution that eliminates the risks and inefficiencies of self-hosting.
Contact Data Holdings today to schedule a consultation or facility tour and learn how our colocation services can provide the reliability, compliance, and performance your business needs to grow with confidence.
Let’s discuss how we can help your business achieve 100% uptime.
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