10 Myths About Colocation Every CIO Should Stop Believing
In today’s digital-first world, enterprises are constantly seeking the right balance between cost, scalability, performance and security for their IT infrastructure. While cloud computing has dominated conversations, colocation data centres are quietly powering the backbone of critical workloads worldwide. Yet, many CIOs and decision-makers still hold outdated beliefs about colocation that prevent them from seeing its true value.
Let’s bust the most common myths.
Myth 1: Colocation is Just Expensive Real Estate for Servers
Reality: Modern colocation offers far more than physical space. Customers get enterprise-grade power redundancy, cooling efficiency, high-speed connectivity, physical security and compliance certifications—all at a fraction of the cost of building and maintaining an on-premises data centre.
Myth 2: Cloud Has Made Colocation Obsolete
Reality: Colocation and cloud are not rivals; they complement each other. Colocation provides low-latency, secure and customizable environments for workloads that don’t fit the cloud, while also serving as a hybrid cloud on-ramp for enterprises.
Myth 3: Colocation Lacks Flexibility
Reality: Today’s colocation providers offer scalable racks, cages and suites that grow with business needs. Customers can expand capacity without worrying about capital investment, making it as elastic as cloud, but with more control.
Myth 4: It’s Only for Large Enterprises
Reality: Startups, SMBs and even government agencies use colocation. For smaller players, colocation delivers enterprise-class infrastructure without the CAPEX burden of building data centres.
Myth 5: Colocation Doesn’t Support Digital Transformation
Reality: Far from being outdated, colocation is at the heart of digital transformation strategies. It enables hybrid IT models, faster adoption of emerging technologies and better integration with cloud, AI and edge computing platforms.
Myth 6: Data Isn’t Secure in Colocation Facilities
Reality: Reputable colocation centres implement multi-layered physical and cyber security, including biometric access, 24/7 surveillance, DDoS protection and compliance with standards like ISO 27001, SOC 2, PCI DSS and HIPAA.
Myth 7: Managing IT in Colocation is Too Complex
Reality: Colocation providers often offer remote hands services, monitoring tools and managed services, reducing the complexity for internal IT teams. CIOs can focus on strategy rather than routine maintenance.
Myth 8: Colocation is Less Reliable than On-Premises IT
Reality: Colocation facilities are designed for 99.999% uptime, with redundant power, cooling and network connectivity. Achieving this reliability in-house would be prohibitively expensive.
Myth 9: Colocation Doesn’t Support Sustainability Goals
Reality: Many modern facilities are designed to be green data centres, leveraging renewable energy, efficient cooling technologies and PUE optimization. Partnering with the right provider helps organizations advance their ESG commitments.
Myth 10: Once You Choose Colocation, You’re Locked In
Reality: Most colocation contracts are designed for flexibility, with carrier-neutral connectivity and the ability to integrate multiple cloud providers. Businesses can easily pivot between hybrid, cloud and edge models as needs evolve.
