F E A T U R E

Nick Layzell , Customer Success Director , Telehouse Europe

Cloud Report , 84 % of respondents said managing cloud expenditure was their most pressing cloud challenge – looming larger than security .

Colocation is also benefiting from a strategic shift in the way organisations perceive cloud computing , moving from a prevailing ‘ cloud-first ’ mentality to a more discerning , ‘ cloud-selective ’ approach . This change stems from the realisation that while cloud computing offers huge advantages in agility and innovation , it is not always the best fit for every business scenario or workload .

Many organisations are also still reluctant to entrust their most sensitive data to a public cloud . After reviewing all their

Cost and long-term cost-effectiveness

With cost reduction high on the list of priorities for on-premises data centre users , colocation is attractive through its elimination of extensive on-site data storage operations , reducing requirements for in-house technical staff and infrastructure . Downtime , the other major contributor to escalating expenditure , can be avoided with guaranteed SLA uptimes to ensure the highest levels of redundancy .

The cost-benefit analysis goes beyond storage costs , however , encompassing maintenance and scalability . Colocation is a cost-effective solution for businesses , whether they have stable workloads or are undergoing growth . It eliminates the significant costs associated with expanding cloud footprints to accommodate business growth or new workloads . There are also long-term cost benefits , especially when factoring in the investment in owned hardware .

Colocation also addresses the considerable pain points around energy costs . Forward-thinking data centre operators secure competitive forward-hedged rates , smoothing out violent fluctuations and offering greater transparency on energy costs .

Latency and performance consistency

Latency and performance are where colocation also makes sense . In sectors like finance , where real-time data access is essential , colocation offers the necessary low latency and consistency – a contrast to the potential variable performance in cloud environments . This stability is crucial for high-reliability applications .

Working with the right colocation partner , organisations like banks overcome the constraints of legacy architectures to improve customer experience , ensure smooth integration across channels and add new digital services . As AI

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