With small teams and very limited resources, businesses are always challenged to upgrade their existing IT infrastructures. While larger companies prefer full control of their network and build their own expensive data center, smaller businesses now have two choices for their data networks – colocation and cloud hosting. They both offer cost-effective solutions with state-of-the-art technology but businesses must determine the approach that makes the most sense for their needs. Some businesses shouldn’t even be asking which one but rather what’s the right combination to handle their IT infrastructure. First, let’s take a look at the two options.

Going Colo


For businesses already invested in an extensive physical infrastructure, colocation is a good option that eliminates the cost of building a center and constant maintenance. This type of data center offers businesses the option to rent a space and share the costs of power, cooling, connection, and space with other companies. They have to bring and maintain their own equipment and meet security compliance such as HIPAA, SOC 2, and SSAE 18. Colocation is a great option for small to medium-sized businesses that offers the following benefits:

  • Eliminates Costs of Building and Maintenance
  • 24x7x365 Support to Resolve Issues
  • Easily Expand Your Infrastructure to Meet Business Growth
  • State-of-the-Art Security

Businesses still need to purchase their own servers, storage, switches, and software, but they use a third-party provider to handle everything else. Colocation centers offer businesses the option to manage their networks 24×7 and even Remote Hands Support to address issues quickly. It’s a great option for businesses who want to outsource their data management but still have control over their own hardware. For other businesses, migrating to the Cloud could be the best option.

Heading Towards the Cloud

Cloud hosting is a better option for businesses who don’t have, don’t want, or hoping to replace a physical data infrastructure. Unlike colocation, Cloud provider instead offers businesses to rent a virtual space. While cloud services use a shared facility similar to colocation centers, all information is transferred to an online server that’s accessible from anywhere with a connection. Businesses only pay for the storage they need, and all your data and applications are easily available. Everything else is taken care of by the cloud provider which includes power, cooling, hardware maintenance, and troubleshooting for issues.


Outsourcing IT infrastructures to a cloud provider frees up valuable time for businesses to focus on other activities and provides the following benefits:

  • Dedicated and symmetrical connection
  • Secure access with HIPAA, SOC 2 and SSAE 18 compliance
  • Simple data backup and disaster recovery
  • Automatic software and network updates
  • Easy integration with third-party software

The Cloud has opened a whole new world of opportunities for businesses to expand their infrastructures and scale their data, it still might not be the answer. Some businesses need a hybrid model that combines colocation and cloud services to handle all their data needs.

The Best of Both Worlds

data-center (1)Colocation and Cloud Services have provided businesses a much-needed reality check for businesses to upgrade their outdated infrastructures, but one option might not be the answer for everything. Depending what applications businesses use, a combination of both cloud and colocation services would guarantee the best performance and security. These Hybrid Cloud models offer businesses the benefits of Cloud migration for general applications but retain the reliability of a physical data infrastructure for more important systems.

Create Your Own Solution


Colocation and Cloud are two different solutions that offer businesses different benefits and tools to address their infrastructure needs. Before making a decision, businesses should have a comprehensive understanding of their current IT environment and consider the following factors:

  • Current IT staff and equipment
  • How much assistance needed
  • Future plans for growth
  • Security compliance

Businesses might realize there’s no easy answer and they need a combination of colocation and cloud services that utilizes the best features of each one. To learn if colocation or cloud services are the best fit for your business, contact a local expert at Servpac today. As Hawaii’s Largest Local Telecom, Servpac offers a single vendor solution to migrate your existing services into a local cloud server. You can always access your data with a dedicated fiber connection secure with HIPAA, SSAE 18, and SOC 2 compliance and guaranteed backup on-site and off-site.

We also provide colocation services in our brand new Tier 3 data center in Mililani Tech Park. At 850 feet above sea level and 10 miles inland, this 30,000 square feet (with 150,000 sq ft expansion space) facility is less prone to natural disasters such as hurricanes and tsunamis. This state-of-the-art facility is also built with 24×7 security and redundancy at all components and levels, providing 100% uptime and guaranteed exceptional performance for customers.


Servpac is Hawaii’s Cloud Solution. Started in 2004, Servpac has evolved from a telecommunications provider, to an all-in-one cloud-based technology solution for Hawaii businesses. Our suite of services range from cloud computing, data colocation, managed services, dedicated fiber internet and VoIP phone solutions. We focus on providing premium customer service and deliver world-class solutions that transform Hawaii’s technology landscape.

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