© Copyright Acquisition International 2026 - All Rights Reserved.

Article Image - Digital Infrastructure Strategy: Comparing On-Premises with Cloud and Colocation
Posted 17th June 2024

Digital Infrastructure Strategy: Comparing On-Premises with Cloud and Colocation

When it comes to digital infrastructure, deciding between utilising either ‘on-premises’ or cloud remains to be a divide amongst all business decision makers and both sides have their benefits, depending on which way you look at it.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Digital Infrastructure Strategy: Comparing On-Premises with Cloud and Colocation
Colocation Data Centre

When it comes to digital infrastructure, deciding between utilising either ‘on-premises’ or cloud remains to be a divide amongst all business decision makers and both sides have their benefits, depending on which way you look at it.

Considering cloud for example, its often believed to be a runaway success. The UK Regulator Ofcom had produced a report into the domestic cloud service market and noted that the UK cloud infrastructure market is expanding, with overall revenues increasing from a rate of 35% to 40% annually.

Despite that, Synergy analysts have discovered that by 2027, enterprise data centres will still account for more than a quarter of data centre capacity. This year, there were 350 UK IT leaders involved in a 2024 research project, which recorded 93% of its respondents who have been involved with a cloud repatriation project in the last three years. Furthermore, 25% of those businesses have already migrated half or more of their cloud-based workloads back to an ‘on-premises’ infrastructure.

However, for many businesses, especially those experiencing growth, SMEs and medium-sized enterprises, the reality is there are two types of ‘on-premises’ infrastructures. Some businesses (usually within technology) will host their own data internally within their own data centre and there are others that will host their entire IT infrastructure within their own office.

The latter group of companies are often seeking solutions to manage their servers and treat it as a critical asset which they need to protect.

Migrating to serviced offices

Businesses that are experiencing growth or are already at a medium-sized level, tend to be already discussing their next steps. Usually driven by the increase in energy prices, higher borrowing, operational costs, and evolving work patterns, they tend to reassess their property portfolios. One focus has been the migration to serviced offices.

Lambert Smith Hampton, Commercial property specialist cites Mordor Intelligence forecasting: “that the UK market will grow by 8% per year during 2022-27.” There also been an ‘exceptional rise in demand’, for flexible offices in the UK, according to Savills reports. It also highlights that the increased demand has led to an increase in prices by 15% and enquiries are up by 17%.

Despite that, issues have begun to arise with serviced offices. With critical business technology being operated within a shared space, restrictions have emerged.

First off, serviced offices are rarely equipped with the necessary infrastructure and connectivity to host high-growth company needs. The power supply is shared throughout the entire building and can therefore be insufficient. Also, connectivity options and data management capabilities tend to be at a bare minimum.

Shared offices also lack the necessary physical and cyber security assets. With the demand in costs, a serviced office typically has less physical security than a data centre and on-site staff aren’t comprehensively trained in cyber-security. From a technological perspective, serviced offices are more vulnerable to cyber-attacks because they use less secure connections to keep the costs low.

Finally, serviced offices have limited space for businesses looking to grow. By having a limitation on room-size, this can restrict business attempts to scale their IT infrastructure, because their office operators need to prioritise space for furniture etc.

Colocation data centre

When it comes to digital infrastructure, serviced offices often bring challenges for high-growth businesses. It is difficult for them to operate their own, expensive property facility or carry their ever-expanding infrastructure with them. On the other hand, businesses can experience a lack of control over their own technologies, so are forced to reduce their control over systems, and key processes.

Then there is the case of growth not being a ‘one time deal’ for businesses. It goes beyond legacy on-site strategies, expansions and adapting their infrastructure with every opening of a new facility.

With a colocation centre, businesses can move their IT infrastructure, while focusing on their growth and agility.

Firstly, businesses can exploit a flexible office space to move, optimising their capital expenditure (CAPEX) investment and operational expenditure (OPEX), by acquiring the minimum they need. In context, this is often a complete migration to OPEX as businesses seek to release themselves of expensive liabilities.

The increased agility can fuel businesses to expand their operations. They also receive reassurance of greater security, and as they evolve, their colocation partner can also advocate a wider range of suppliers in connectivity, and ecosystems.

Business operations can become more resilient as the colocations provides managed connectivity, power and cooling issues which can assist their sustainability concerns.

The issue however for businesses, is finding the right colocation partner who are local to them, available for support across the UK and can deliver transparency at a reasonable price.  However, once a business finds a suitable colocation supplier, than they can benefit by splitting their IT infrastructure into a dedicated colocation space and benefit with the best of both worlds. They can gain an optimal operation focus with more control over costs and greater flexibility to grow.

Adopting an interconnected approach

To optimise any IT infrastructure migration, businesses need to clarify their approach within the decision-making process. They can do that in five simple steps:

  1. Establish what the data is going to be used for and thus, the primary attributes in successfully managing it. Is speed of access the top concern? Or security? Or real-time analysis? Consider scalability, business continuity and disaster recovery. 
  2. Define the technologies that will most effectively serve these key purposes. Technically, this means assessing space, power, cooling, and connectivity requirements and accounting for data volume, bandwidth, and downtime. 
  3. Find and connect with suppliers in those spaces that are prepared to become real partners. In a digital, data-driven age, the software and infrastructure a business is built on, matters. Tour facilities and develop service level agreements (SLAs). 
  4. Develop a detailed migration plan that anticipates delays and establishes clear definitions of success. Install and configure hardware to achieve this, spanning routers, switches, firewalls, load balancers and virtualization platforms and hypervisors if applicable. 
  5. Keep on eye on the future: embracing data and taking steps towards managing and optimising it, typically accelerates growth for a business. As such, businesses must ensure that any strategy to put the data in the right place now, does not mean it is in the wrong place tomorrow.

Categories: News, Strategy


You Might Also Like
Read Full PostRead - Eye Icon
Cyber Security Specialists Secure Success!
Innovation
22/07/2022Cyber Security Specialists Secure Success!

Information systems are the beating heart of how companies operate, and it is these companies that elevate nations to new and prosperous heights.

Read Full PostRead - Eye Icon
What is ERP Service?
News
28/01/2022What is ERP Service?

Enterprise Resource Planning, or ERP for short, automates and makes all business activities easier with a centralized and integrated software application. The main objective of ERP is to facilitate the flow of information between all company functions inside t

Read Full PostRead - Eye Icon
As the Media Frenzy From GDPR Dies Down, Companies Need To Reman Vigilant Against Data Breaches
Legal
10/09/2019As the Media Frenzy From GDPR Dies Down, Companies Need To Reman Vigilant Against Data Breaches

When the GDPR legislation was being created there was a flurry of media reports and business commentary on the importance of data safety, with companies and individuals alike scrutinising their own policies and working on improvement. A little more than a year

Read Full PostRead - Eye Icon
Lawrence Grant Chartered Accountants
Finance
03/06/2016Lawrence Grant Chartered Accountants

Lawrence Grant Chartered Accountants has been providing accountancy services and tax advice to 100’s of individuals, sole traders, corporate businesses and multi-national clients across Middlesex and the Greater London area since 1969.

Read Full PostRead - Eye Icon
Technology Aftermarket Support Secures Success
Innovation
23/03/2020Technology Aftermarket Support Secures Success

Technical services and aftermarket support have become an increasingly important battleground for technology manufacturers as the expectations of consumers and end-users continue to rise. Rising to meet them is Qcom, a support partner which delivers these serv

Read Full PostRead - Eye Icon
SkyStem Software Secures Success
Leadership
25/09/2020SkyStem Software Secures Success

Closing the books and completing reconciliations is not the most glamorous part of accounting, but it’s a vital last line of defense against identifying fraud and errors that might occur. The team at SkyStem have developed a way to automate the month-end clo

Read Full PostRead - Eye Icon
Ten Biggest Legal Mistakes Tech Start-ups Make
Strategy
15/06/2018Ten Biggest Legal Mistakes Tech Start-ups Make

This month my company (A City Law Firm) marked our ten-year anniversary, which has made me think back to our first year, how we started and some of the early mistakes we made.

Read Full PostRead - Eye Icon
Absolutely acquire Go-Betweens Couriers Ltd
M&A
23/06/2020Absolutely acquire Go-Betweens Couriers Ltd

Absolutely, the longest serving London Courier since 1865, is pleased to announce the acquisition of Go-Betweens Couriers Ltd for an undisclosed sum. Go-Betweens is a London-centric Courier company operating from Holborn, WC1 offering Sameday, Next Day and Int

Read Full PostRead - Eye Icon
The Value of Private Equity Transactions
Finance
01/06/2016The Value of Private Equity Transactions

The value of private equity transactions was sky high in the second half of 2015 as USD 298,166 million was invested, reaching its highest level for a six-month period since the first half of 2007.



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have a number of unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow