Home / Resources / Blog

On-premise vs. Cloud vs. Hosted Data Center: Major Differences

Last updated: 13 Apr 2023

Making the move from on-premise data and application storage solutions to a hosted data center is something many companies are doing. The advantages offered by this transition are many but most notably relate to scalability and cost-efficiency.

The On-premise Burden

Mental images of yesterday’s hardware rooms usually include rows of racks by the dozen. While storage has certainly reduced its physical footprint over the past decade, the number of devices and applications generating data has multiplied exponentially.

In this landscape, it’s difficult to correctly guess how large an on-premise data center solution should be to accommodate a company’s growth forecast. Should the organization plan for a five or ten-year strategy? Will current technology still be relevant at the end of that predetermined time? These are complex questions that can have a devastating effect if answered incorrectly.

Considerations for internally housing data center activities must also cover the need for massive amounts of power, networking equipment, and skilled personnel.

IT employees who are knowledgeable on the configuration of a complex network can be expensive human capital, but without them, the company takes the chance of having sub-optimal system performance.

Over-investing or building too much data center may be a waste of money that could otherwise be spent on high-priority (and revenue earning) projects. Conversely, building an inadequate operation caps growth and may result in huge capital expenses and investments of time to expand the infrastructure later.

Saving Money

Using a colocated data center translates to a number of benefits. One of the greatest is the immense cost savings offered, particularly in the area of capital expenditures. Datacenter services are generally provided on a monthly basis, and the company no longer has to acquire costly servers and network equipment. The hosted data center provides all of this and the expenses transfer from major capital spending too much more manageable recurring operational fees.

Another way to save money using a colocated data center is to purchase service packages that are tailored to fit the company’s needs. As the business grows or streamlines, storage space can do the same without issue. Costs are predictable and fixed. There are no wasted resources along the way since the company pays for only what is needed but at the same time can expand easily and inexpensively to accommodate growth. Datacenter service providers have negotiating power on everything from utilities to hardware and can provide these services for a fraction of the price the company would pay if running an on-premise solution.

Shift Responsibility and Eliminate Hassle

Colocated data centers handle everything from providing equipment to updating and maintaining that equipment. No large amounts of space are needed at the company level since all equipment is housed at the data center. Skilled company personnel can be used on more lucrative projects as they’re no longer focused on fixing network problems or provisioning servers. In addition, data center technicians are highly trained in optimizing these systems, which may result in far less downtime and better performance.

The benefits realized when using a colocated/hosted data center vendor are immeasurable. Eliminate the hassle, expense, and limitations that accompany traditional solutions and enjoy greater flexibility and power and reduced costs with the alternative. For more information on using a colocated data center, contact BlackPoint IT Services today.

Get in Touch

Empower your business with custom-tailored tech solutions. Contact us now to get started.

Are you a current customer who needs support?

Call Service Desk (Support Line): 1-866-575-9512

Interested in our managed services and tech solutions?

Request a Free Consultation (Sales Line): 1-866-585-1198

Looking to Partner with us?