Cloud, On-Prem or Colocation
TL;DR
- Public cloud → fastest to start, elastic, but costs can spiral and lock-in is real.
- On-prem → ultimate control, but high CapEx, talent overhead, and slower to adapt.
- Managed colocation (Share IT) → enterprise-grade facilities and connectivity with cloud-like flexibility, predictable costs, and hands-off operations.
Option 1: Public Cloud
Benefits
- Speed & elasticity: spin up workloads in minutes; ideal for spikes or experiments.
- Rich ecosystem: managed databases, AI/ML, analytics, CDN, IAM, etc.
- No hardware to buy: pure OpEx model.
Drawbacks
- Cost volatility: egress, IOPS, snapshots, and premium services make bills unpredictable.
- Lock-in & refactoring: platform-specific services can trap workloads.
- Performance tax: multi-tenancy and noisy neighbours can affect latency/throughput.
- Compliance nuance: data residency, shared responsibility, and auditing still need careful design.
Best for: bursty workloads, greenfield apps, short-lived projects, and teams without infra expertise.
Option 2: Colocation (DIY)
Benefits
- Performance per pound: own your hardware; optimise for your exact workload.
- Network choice: blend carriers/IXPs; build private interconnects to hyperscalers.
- Predictable billing: power, space, cross-connects-few surprises.
Drawbacks
- You run it: capacity planning, hardware lifecycle, patching, on-call.
- CapEx cycles: refreshes every 3-5 years; procurement friction.
- Tooling gap: unless you invest, you miss cloud-like automation and observability.
Best for: stable, high-throughput workloads and teams with strong infra skills.
Option 3: Managed Colocation (Share IT) - the pragmatic middle
Managed colocation keeps the cost-and-control benefits of colo, without the operational drag.
What “managed” means with Share IT
- We operate the platform: racking/stacking, patching, firmware, monitoring, backups, DR drills.
- Cloud-like automation: self-service provisioning, infrastructure as code integrations, and API access.
- Connectivity by design: direct links to hyperscalers (for hybrid), carriers, and IXPs for low-latency paths.
- Compliance groundwork: ISO 27001-aligned controls, GDPR-aware data flows, documented processes, audit support.
- Clear pricing: predictable monthly fees for space/power/ops, with transparent add-ons (DR, backup tiers, 24×7 hands).
Why it wins
- Lower, steadier TCO: eliminate cloud bill surprises while avoiding on-prem staffing costs.
- No lock-in: standard hardware stacks; easy workload portability (to cloud or other facilities).
- Better performance density: custom CPU/RAM/NVMe profiles; pin cores; tune networks.
- Hybrid ready: keep data local for sovereignty and push burst workloads to public cloud over private interconnects.
Quick comparison
| Dimension | Public Cloud | Colocation (DIY) | Managed Colocation (Share IT) | On-Prem |
|---|---|---|---|---|
| Time to value | ★★★★☆ | ★★☆☆☆ | ★★★★☆ | ★★☆☆☆ |
| Upfront cost | ★★★★★ (low) | ★★☆☆☆ | ★★★☆☆ | ★☆☆☆☆ |
| Ongoing cost predictability | ★★☆☆☆ | ★★★★☆ | ★★★★☆ | ★★★★☆ |
| Performance per £ | ★★☆☆☆ | ★★★★☆ | ★★★★☆ | ★★★★☆ |
| Control & customisation | ★★☆☆☆ | ★★★★☆ | ★★★★☆ | ★★★★★ |
| Compliance & data sovereignty | ★★★★☆ | ★★★★☆ | ★★★★★ | ★★★★★ |
| Vendor lock-in risk | ★★★☆☆ | ★★★★☆ | ★★★★☆ | ★★★★★ |
| Operational burden | ★★★★☆ | ★★☆☆☆ | ★★★★★ | ★★☆☆☆ |
Stars are relative. “Managed Colocation” adds expert operations, automation and SLAs on top of standard colo.
Cost thinking: a simple TCO lens
When we model 3 years of a typical steady workload:
- Cloud: high opex from compute/storage/egress; excellent when utilisation is spiky, expensive when steady.
- On-prem: lowest per-unit cost but requires hiring/retaining infra talent, plus CapEx & refresh.
- Managed colo: competitive per-unit cost and reduced staffing overhead; predictable monthly run-rate.
Ask us for a free TCO model tailored to your utilisation, data growth, and latency/egress patterns.
Security, compliance & sovereignty (UK/EU focus)
- Data residency: choose UK or EU sites; maintain sovereignty while peering privately to cloud.
- Shared responsibility simplified: we manage facility, hardware lifecycle, and platform ops; you keep app/data controls.
- Auditability: physical security, access logs, change control and backup/DR reports packaged for audits.
- Zero-trust & segmentation: micro-segmentation, private VLANs, dedicated firewalls, and SIEM hooks.
Performance & latency
- On-prem: excellent if your users are near the office/DC; limited carrier diversity.
- Cloud: great global reach; variable jitter/IOPS in multi-tenant tiers.
- Managed colo (Share IT): dedicated resources in carrier-dense facilities, direct cloud on-ramps, and tuned storage stacks (NVMe/Tiered). Result: consistent low latency and strong IOPS per £.
Sustainability
- Cloud: hyperscalers publish strong PUE claims, but data movement/egress can add hidden footprint.
- On-prem: footprint depends on your building and cooling.
- Managed colo: energy-efficient facilities with granular metering; right-sized hardware reduces waste and over-provisioning.
When to choose which?
Choose Public Cloud if:
- You need rapid experimentation, serverless services, or global scale yesterday.
- Workloads are spiky with idle periods.
Choose On-Prem if:
- You require full physical control on-site and have a mature infra team.
- Regulatory constraints demand it (rare with modern colo).
Choose Managed Colocation (Share IT) if:
- Workloads are steady, data-heavy, latency-sensitive, or cost-controlled.
- You want cloud interconnects without paying the “everything lives in cloud” premium.
- You value predictable cost, strong performance, and audit-ready operations - without hiring a large infra squad.
FAQs
Is colocation cheaper than cloud?
Often for steady workloads. Cloud shines for bursty demand; colo wins on consistent utilisation and egress-heavy patterns.
Can I run a hybrid model?
Yes. With Share IT you can keep stateful/data-heavy systems in colo and burst stateless tiers to public cloud over private interconnects.
How fast can we migrate?
Most customers see initial workloads live in 4–8 weeks, depending on hardware lead times and network changes.
What compliance support do you provide?
We align operations with ISO 27001 controls, provide change/backup/DR evidence, and support GDPR-ready designs.
Do you manage backups and DR?
Yes - tiered backup storage, immutable snapshots, replication between sites, and tested runbooks.
How Share IT can help
- Managed Colocation: fully-operated racks, 24×7 monitoring, patching, and SLAs.
- Hybrid Connectivity: private links to AWS/Azure/GCP for burst and SaaS access.
- Migration & TCO: assessment, right-sizing, cost model, and a step-by-step migration plan.
Ready to see costs and an architecture tailored to your apps? Get a free TCO & migration outline from Share IT.