The Benefits of Server Colocation for Small and Medium Enterprises

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If your business hosts and manages servers on-premises, you’re not alone. A study from Spiceworks shows that 98% of companies run on-premises server hardware. There are good reasons to own and host your hardware. However, small and medium enterprises should consider the alternatives, which are almost certain to save money while reducing the complexity of IT operations.

In this article, we will look at one alternative to on-premises servers: colocated servers. These servers are owned by you but hosted in a data center owned and managed by a third party. You can think of colocation as halfway between on-premises and cloud. Someone else takes care of the infrastructure required to run your servers, but you retain ownership and control of the server hardware. 

Let’s look at some of the reasons you might want to consider hosting your servers in a colocation data center. 


When businesses opt for colocation, they share the cost of bandwidth, power, cooling, and housing of the server with other companies colocating in the same data center. Because expenses are shared, businesses benefit from significant savings compared to the costs associated with hosting a server on-premises. They can then channel these saved costs to other business development and growth areas.

Enhanced Security

Server colocation providers invest heavily in physical and cybersecurity measures to protect their clients’ data, including 24/7 surveillance, biometric access controls, fire suppression systems, and robust cybersecurity protocols. For SMEs, accessing such high-level security measures without the associated costs can be a game changer, providing them with peace of mind regarding their data’s safety.


Server colocation gives SMEs the ability to scale their infrastructure quickly and efficiently. Whether a company needs to add more servers, increase storage, or enhance processing power, colocation data centers can accommodate their needs, helping SMEs to adapt to changing business requirements without major capital investments.

Reliable Connectivity

Colocation facilities typically have multiple high-speed internet connections and backup power supplies to ensure that servers are always up and running. Achieving this level of reliability is difficult for SMEs without substantial investment in redundant power and connectivity, but it’s essential if they are to avoid downtime that results in significant financial losses and damage to a company’s reputation. With server colocation, SMEs can enjoy the benefits of reliable connectivity without needing to implement and manage the infrastructure to achieve it.

Access to Expert Support

Reputable server colocation providers offer technical support and guidance from experts who understand the ins and outs of server management. Having expert help can be a significant benefit for SMEs that may not have extensive IT departments. Instead of spending time and resources on server issues, they can focus on their core business functions while leaving the technical aspects to the experts.

Server colocation is a happy compromise that allows businesses to retain complete control over their hardware while benefiting from enterprise-grade connectivity, performance, and support without the enterprise price tag. 

Talk to an SME colocation specialist today to learn how Liberty Center One can help your business transition from on-premises servers to colocation.