Compare
Colocation: when it beats buying cloud
Infrastructure owners, IT leads · 7 min read
Renting compute is not always the answer. If you already own servers, or you have specific hardware you need to run, colocation lets you keep the machines and rent only the hard parts: power, cooling, physical security, and connectivity. For the right workload it is cheaper, more controlled, and no harder to operate.
The triggers that make colocation win
Colocation tends to be the right call when one or more of these is true:
- You have capital already invested in hardware that has useful life left.
- You need specific or specialised kit the public cloud does not offer.
- You require full physical control and custody of your machines.
- At steady scale, owning the hardware is simply cheaper than renting it month after month.
Owning versus renting, at scale
The economics are straightforward once a workload is steady. Renting compute makes sense while you are growing or uncertain. Owning the hardware makes sense once the load is predictable and long-lived, because you stop paying a rental margin every month on a machine that is fully utilised anyway.
| Factor | Renting cloud compute | Owning + colocating |
|---|---|---|
| Upfront cost | None | Hardware capital |
| Monthly cost at steady scale | Higher (rental margin) | Lower (space + power + bandwidth) |
| Control of hardware | None | Full |
| Best when | Variable or short-lived | Steady and long-lived |
What a good facility actually provides
Technical detail
You bring the servers; the facility provides dual power feeds with UPS and generator backup, N+1 cooling, biometric physical security with CCTV, and 24/7 remote hands for installs, cabling, and reboots. At Metal on Cloud the bandwidth is bundled and IX-peered, so you are not negotiating a separate ISP contract, and you can take anything from a single U up to a full cabinet or a private cage with physical isolation.
What to check before you sign
- Power: how much is included per rack, and how is overage billed?
- Bandwidth: bundled or metered, and is IX peering included?
- Remote hands: included hours, response time, and after-hours rates.
- Access: who can enter, how access is logged, and how IP blocks are provisioned.
Key takeaway
Colocation is the right call when the hardware should be yours but the building should not. You keep control and custody; you stop running generators and air conditioning. Price it against an equivalent always-on cloud footprint and the gap, at steady scale, is usually decisive.
Ready to talk specifics?
Get a Quote