If you’re like most MSPs, your infrastructure has grown along with your client base—and so have the headaches and logistical challenges. Between managing aging hardware, rising energy costs, and ensuring security and compliance across client environments, infrastructure management can quickly become a major drain on your team’s time and resources. What began as a way to stay in control has quietly turned into an operational bottleneck, holding you back from scaling.
The good news? There’s a better way. More and more MSPs are moving to colocation—maintaining full control over their stack, while offloading the cost and complexity of managing physical infrastructure. It’s not about giving up control. It’s about getting back the time, flexibility, and scalability you need to grow.
The Real Cost of On-Prem Hosting
On the surface, managing your own infrastructure might seem like the more cost-effective path. After all, you already own the hardware, right? But when you factor in the full scope of what it takes to run an on-prem data center, the math starts to look very different.
Between capital expenditures on servers, racks, and cooling systems—plus ongoing expenses like power, physical security, bandwidth, and personnel—costs can spiral quickly. And those are just the basics. There’s also the risk of hardware failure, extended downtime, compliance gaps, and disaster recovery planning to consider.
Many MSPs find themselves spending more time maintaining their own environment than serving their clients. And as their business grows, so does the need for expansion—requiring even more space, energy, and investment.
The bottom line? On-prem infrastructure ties up resources that could be better spent on delivering services, building client relationships, and growing your business.
What Is Colocation (And Why It’s a Fit for MSPs)?
Colocation gives MSPs access to secure, professionally managed data center infrastructure—without the overhead of owning or maintaining it. At Cloudsmart, it’s more than just rack space. Their colocation services are built with MSPs in mind, offering the performance, security, and scalability needed to support growing client demands.
Rather than investing in your own hardware or facilities, you can tap into Cloudsmart’s enterprise-grade environment to deploy your services faster and more reliably. Whether you’re hosting virtual machines, backups, or client workloads, colocation lets you stay agile—while Cloudsmart handles the power, cooling, and uptime.
Here’s why colocation makes sense for growing MSPs:
- Reduce the burden of infrastructure management – without compromising service quality.
- Leverage Cloudsmart’s high-availability systems – built for performance and security.
- Benefit from 24/7 access, monitoring, and physical safeguards.
- Avoid long-term contracts – with consumption-based billing that scales with your needs.
For MSPs ready to grow smarter—not just bigger—Cloudsmart’s colocation solution provides a scalable, secure foundation to serve clients more efficiently.
How Colocation Helps MSPs Scale Without the Headaches
Scaling as an MSP shouldn’t mean doubling your infrastructure headaches. Yet for many providers, growth comes with a steep price: more hardware to manage, more space to secure, and more complexity across the board.
That’s where colocation steps in. By shifting your workloads to a purpose-built environment like Cloudsmart’s Tier III data center, you offload the burdens of infrastructure upkeep—so your team can focus on delivering value to clients, not managing hardware and facilities.
Here’s how colocation helps MSPs grow smarter:
- Onboard new clients faster – without waiting for new hardware installations or build-outs.
- Expand capacity on demand – no need to over-purchase resources “just in case.”
- Stay compliant and secure – with built-in physical security, access control, and redundancy.
- Avoid vendor lock-in – with flexible infrastructure options and no long-term contracts.
Cloudsmart’s approach to colocation is simple: deliver the infrastructure and support MSPs need to grow—without forcing them to give up control or commit to more than they use.
Want to see it for yourself? Take a virtual tour of our facility!
What MSPs Gain with Cloudsmart Colocation
When MSPs partner with Cloudsmart, they get more than rack space—they get a colocation experience designed around their needs. From the infrastructure itself to the way support is delivered, everything is built to help MSPs scale confidently and efficiently.
Here’s what sets Cloudsmart apart:
- Tier III Data Center
Enterprise-grade facility with redundant power, cooling, and internet connectivity to ensure high availability and uptime. - 24/7 Secure Access & Support
Around-the-clock monitoring and physical access so your team can get what they need, when they need it. - Consumption-Based Billing
Pay only for what you use, with no long-term commitments. Scale up or down as needed, without penalty. - A True MSP Partnership
We don’t just hand you a key—we work with you to design a solution that fits your stack, goals, and growth plans.
For MSPs tired of overbuilding, overpaying, and over-managing their infrastructure, Cloudsmart provides a smarter way to grow.
MSP Use Cases: When to Consider Making the Switch
Every MSP eventually reaches a point where on-prem infrastructure becomes more of a burden than a benefit. Whether it’s the cost, the complexity, or the lack of scalability, something has to give. That’s where colocation becomes a strategic move—not just a tactical one.
Here are a few real-world scenarios where switching to colocation makes sense:
- You’re running out of space or power in your current facility
Instead of investing in a larger footprint or costly upgrades, colocation lets you move into an environment that’s already built for scale. - You’re onboarding new clients faster than you can support them
With Cloudsmart, you can quickly spin up new resources without waiting on long procurement or build cycles. - Your team is spending too much time managing infrastructure
Colocation lets your engineers focus on delivering services and supporting clients—not babysitting servers. - You want better redundancy and disaster recovery
Cloudsmart’s Tier III data center ensures you’re not putting all your eggs in one fragile basket. - You’re ready to shift from CapEx to OpEx
With consumption-based billing, you can align infrastructure costs more closely with revenue and usage.
In short, if your current infrastructure is holding you back—or eating up resources you could be using elsewhere—colocation might be the move that unlocks your next phase of growth.
Cloudsmart: Colocation That Scales With You
As an MSP, your value lies in the services you deliver—not the hardware you manage. Yet many providers still get stuck in the cycle of expanding physical infrastructure, troubleshooting power issues, or worrying about uptime. It’s not scalable. And it’s not necessary.
Colocation with Cloudsmart gives you the infrastructure backbone you need—without the overhead. You stay in control of your systems, gain flexibility to grow on your own terms, and get the peace of mind that comes from operating in a secure, redundant, and expertly managed environment.
Whether you’re just starting to outgrow your current setup or looking for a smarter long-term solution, colocation puts you in a position to grow faster, serve more clients, and stay agile in a changing market.
Ready to see it in action?
Take a Virtual Tour of our facility. Explore our state-of-the-art facility designed for security and performance.