© 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
5 Common Pitfalls of Freight Shipping Companies and How to Avoid Them
News
29/09/20225 Common Pitfalls of Freight Shipping Companies and How to Avoid Them

Freight shipping companies play an important role in moving cargo from one point to another and ensuring that both the cargo and its owners’ interests are properly safeguarded. Unfortunately, freight shipping companies are also vulnerable to many common mist

Read Full PostRead - Eye Icon
Sie Holding acquires 51% of shares in Tagor Electronic doo Nis.
Legal
05/05/2015Sie Holding acquires 51% of shares in Tagor Electronic doo Nis.

Marija Tasic and Vanja Stojanovic, attorneys at law from Tasic & Partners, after months of negotiation, have finalized the acquisition between Austrian company System Industrie Electronic Holding AG (SIE Holding) and Tagor Electronic doo Nis, leading manufactu

Read Full PostRead - Eye Icon
The Best Way to Find Talented Software Engineers for Your Business
Leadership
19/08/2022The Best Way to Find Talented Software Engineers for Your Business

Finding a software engineer for your company is harder than it looks. A typical recruitment process is almost guaranteed to fail, as full-stack developers are only as good as their skills. Any candidate can tell you they're good, but a fantastic coder can show

Read Full PostRead - Eye Icon
Retail Mapping: Utilizing Contextual Intelligence to Meet Consumers Where They Are
News
27/06/2022Retail Mapping: Utilizing Contextual Intelligence to Meet Consumers Where They Are

Although online shopping has increased by 300%, 56% of shoppers still visit a physical store before making a purchase, and 30% of direct-to-consumer brands say opening a store is a current priority.

Read Full PostRead - Eye Icon
5 Key Trade Compliance Trends in 2025
News
23/04/20255 Key Trade Compliance Trends in 2025

Trade compliance is set to become even more challenging in 2025. The focus for many organisations will shift to adapting strategies that address geopolitical tensions, sustainability and ensuring compliance systems and tools are fit for purpose.

Read Full PostRead - Eye Icon
Volatility and Complexity in Tax Rules
Legal
31/08/2016Volatility and Complexity in Tax Rules

AVELLUM is best known for its expertise in transactional tax and international tax planning. The firm’s unmatched experience allows us to provide clients with the best quality services in these fields.

Read Full PostRead - Eye Icon
Perfection in a Progressive Platform
Innovation
03/08/2022Perfection in a Progressive Platform

Handling regulatory compliance can be a daunting task for any business, but BrightInsight shows its true power as it reaches numerous businesses – on a global level.

Read Full PostRead - Eye Icon
Navigating Regulatory Divergence in Cross-Border Retirement Plan Integration
Finance
29/07/2025Navigating Regulatory Divergence in Cross-Border Retirement Plan Integration

When companies grow internationally or merge with foreign entities, aligning retirement plans becomes a high-stakes challenge. Each country has its own tax codes, eligibility rules, vesting timelines and reporting requirements, which makes it challenging to cr

Read Full PostRead - Eye Icon
Leading M&A Adviser for 2016
Finance
29/06/2016Leading M&A Adviser for 2016

For Haitong International Securities Group Limited (“Haitong International”; 665.HK), mergers and acquisitions (M&A) is not only one of our key business segments, but the essence that makes us who we are.



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