Who Uses Colocation Services and How Can Colocation Benefit Your Business?

As cloud storage solutions rise in popularity, more businesses are leveraging the convenience and reduced costs of maintaining servers and IT infrastructure off-site. If your business is struggling to expand its data storage in-house, or you frequently encounter issues with security or connectivity, colocation may be the solution.

Colocation is the practice of housing your company’s privately-owned servers and equipment in a third-party data center. Typically, colocation services include the space you’re renting along with several services that help ensure your business experiences reliable network connectivity with minimal disruption. 

What Are the Benefits of Colocation?

Colocation services benefit companies of all sizes, from small businesses looking for a cost effective way to manage their data to large organizations that want to expand their data storage capacity without construction costs. Here are a few advantages of colocation:


Colocation data centers offer cooling and power systems designed to keep your business connected – no matter what. Some providers also protect from data loss through backups and recovery services, increasing your network’s reliability.


Colocation services give your company the flexibility needed to scale up or down easily while only paying for the space and bandwidth you need.


Colocation facilities offer the utmost physical security for your networking equipment, providing protection from theft and other risks that may compromise your systems with video surveillance, monitoring, fire detection, and more. Some providers offer cyber security services such as shared or dedicated firewalls as well.


Colocation improves network performance in many ways, from faster speeds to uninterrupted connectivity. Data centers provide cost-effective connections to multiple service providers and redundant network solutions to ensure your business-critical applications run as smoothly as possible.

Who Uses Colocation Services?

Most businesses could benefit from colocation services. However, there are a few industries that see significant improvements in connectivity, reliability, performance, and more when they switch from housing their infrastructure on-premises to colocation:


Healthcare organizations’ network traffic has increased since the onset of the pandemic as virtual services – which allow healthcare providers and patients to meet remotely – rise in popularity. To meet these growing demands, more healthcare businesses are opting for the flexible data center capacity colocation provides.


Colocation allows SMBs to scale for significantly less cost than building or expanding an on-premise data center. Colocation services also offer the reliability and support of IT experts without having to expand in-house staff, along with reducing the burden of day-to-day infrastructure maintenance.

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Manufacturing companies need to monitor their power and bandwidth usage in real time, which is simplified by colocation services. Colocation also boosts network uptime to reduce power outages that hinder worker productivity, with the added protection of monitoring, reporting, and troubleshooting by trained data center staff.

Get Colocation Services With Always-On Support From Cloudsmart

Colocation offers businesses a reliable, secure, and cost-effective alternative to housing data on-site, no matter what your connectivity needs are. Experience enterprise-level network performance backed by responsive, ongoing support with colocation services from Cloudsmart. Our colocation services include the following and more:

  • Fortified SOC II Type 2 facility
  • Lossless transfer to 24/7 emergency generator
  • Managed backup and disaster recovery services
  • Cisco-powered network with three Tier 1 carriers

When you deploy your hardware at our secure data center, you can have peace of mind knowing your infrastructure is monitored 24/7 by our highly skilled, local staff. Contact us today if you’re ready to learn more about how colocation services from Cloudsmart, a partner who puts your needs first, can benefit your business.