The 7 Business Benefits of Colocation Services

While some businesses operate entirely in the cloud, some still have IT infrastructure they need to house. Others are making the shift from cloud-only environments to a colocation model those better balances performance, cost, and control. 

From air conditioning systems to networking facilities, there is a lot that goes into looking after IT infrastructure. What’s more, all of this requires significant levels of capital investment and ongoing operating expense – the latter of which increases sharply when those systems become large or business-critical. 

For many organisations, housing their IT or operating entirely in the cloud is simply not cost-effective. Many are migrating to colocation due to underlying savings, flexibility, security and 24/7 support. 

In this article, we break down seven business benefits of colocation services, including cost, security and flexibility. 

If you want to learn more, head over to our colocation page or get in touch with our team for a free quotation. 

Table of Contents:  

• What is Colocation 

• The Advantages of Colocation 

• Cost effective solution  

• Reliability and reduced downtime 

• Increased security, data protection & compliance 

• Flexible scalability 

• Access to advanced infrastructure & support 

• 24/7 IT support 

• Geographic redundancy & business continuity 
• Why Colocation Is a Smarter Choice for Modern Business 
  
  

What is colocation?

Before we jump into the business benefits of colocation services, let’s very quickly summarise what this entails. 

Colocation means placing your IT hardware in a secure, purpose-built data centre run by a trusted provider like Pulsant. B 

y moving your equipment into our facility, you avoid the cost, complexity, and risk of managing infrastructure on-site or relying entirely on the cloud. It’s a smarter, more reliable way to support your business-critical systems. 

Read our in-depth page on colocation for more information. 

The advantages of colocation

Here are seven ways a colocation service can benefit your business. 

1) Colocation is more cost-effective

For many businesses, paying for the upkeep of hardware and IT infrastructure can be astronomical. If you’re looking to grow soon, you’ll need a flexible colocation plan that takes away the burden of having to house expensive equipment.  

Rather than allotting a significant long-term capital investment to running an in-house data centre or having your IT infrastructure entirely in the cloud, a colocation provider will give you the necessary capacity at a snip of the price. 

At Pulsant, we reduce business costs by taking care of the following: 

• Power: Reliable power supply with built-in redundancy to ensure uninterrupted operations.  

• Cooling: High-efficiency cooling systems to maintain optimal hardware performance.  

• Space: Scalable, secure space tailored to your infrastructure needs.  

• Humidity control: Precise environmental management to protect sensitive equipment.  

• Physical security: Multi-layered physical security and controlled access to safeguard your online assets.  
• Ongoing maintenance: Proactive, 24/7 maintenance and monitoring for maximum uptime. 
   

We house multiple clients in the same facility. In doing so, you benefit from high service levels at a reduced overall operational cost.  

For example, we provide cooling at scale to multiple clients and can therefore pass down cost savings to each client. As your IT requirements grow, your Pulsant data centre footprint scales accordingly. 

Find out more about the cost and returns associated with colocation here.  

2) Reliability and reduced downtime 

One key benefit of colocation is improved reliability. Power outages and loss of network connectivity are major disruptors to IT operations. And in business-critical or client-facing IT systems, any downtime could result in the loss of business or reputation. 

While there are steps you can take to limit downtime for systems on your premises, these are often limited in a non-dedicated environment, such as an ordinary office. By contrast, our data centres are designed from the ground up to offer: 

• Multiple redundant cooling systems. 

• Power feeds backed up by high capacity. 

• Enterprise-class Uninterruptable Power Supply (UPS) systems. 

• On-site back-up generators. 

• Multiple network connections that take services from several telecommunications carriers to minimise the risk of communication outages. 

We own and manage the entire environment that houses your servers – all the way down to the essential components. This provides us with clear visibility of any issues affecting your colocated servers and speeds up resolution times. 

3) Increased security, data protection and compliance

Pulsant’s ISO 27001 accreditation for IT security covers all our 14 data centres. This certificate means your systems will be protected by multiple levels of access control, internal/external CCTV, steel perimeter fencing, on-site staff, and more. 

We also offer a range of optional services to support your colocated IT. Although your engineers will have full access to your equipment, our expert data centre staff can perform many maintenance tasks for you. We call this “remote hands”, where our engineers carry out essential maintenance, repairs, or upgrades to your colocated equipment. 

We complement our colocation services with a flexible and cost-effective range of network connectivity services. These keep you and your customers connected to your colocated IT. 

4) Flexible scalability

If your company is growing, you need a solution that can easily accommodate an expanding IT infrastructure. The same applies during busier periods—perhaps due to seasonality—when demand for resources spikes. In both cases, relying on a small in-house data room isn’t always reliable or cost-effective. 

A scalable hosting environment, such as colocation, offers a more adaptable and efficient alternative. One of the key benefits of colocation data centres is that you can scale resources up or down as needed—without heavy capital investment or overcommitting to internal IT staff. 

You will be provided with:  

• On-demand bandwidth and storage expansion to match business growth 

• No need to purchase expensive hardware that may go unused during quieter periods 

• Reduced dependency on in-house infrastructure and IT personnel 

• Support for hybrid cloud environments, enabling seamless integration with cloud platforms 

• Flexible resource allocation—just let our team know when you need more capacity, such as for launching a new app 
• Lower costs and higher uptime by distributing traffic across multiple servers and avoiding bottlenecks 

This flexible, cost-effective approach means you only pay for what you use—making colocation a smart, scalable option for growing businesses. 

5) Access to advanced infrastructure and support 

One of the most significant advantages of colocation services lies in the unparalleled access it provides to state-of-the-art data centre infrastructure and technologies. Our data centres are purpose-built with cutting-edge hardware and advanced equipment, offering a level of performance and reliability that would be challenging to achieve through on-premises solutions. 

We invest heavily in our data centre facilities to ensure they meet the demanding requirements of modern businesses. This includes high-capacity power systems, redundant and scalable cooling solutions, and cutting-edge networking infrastructure. These components are designed to support the complex and resource-intensive workloads of your organisation, allowing you to thrive in a digital landscape where speed, efficiency, and scalability are critical. 

Plus, Pulsant data centres incorporate the latest advancements in hardware, such as high-performance servers, storage arrays, and networking switches. By colocating your IT assets in such facilities, you gain access to top-tier equipment without having to make significant capital investments. 

6) 24/7 IT support

Prolonged downtime can be catastrophic for businesses that rely on the internet. As such, it’s best to have your infrastructure in the hands of an experienced service provider, who will dedicate time to monitor performance and prevent potential disasters. 

By colocating your infrastructure with Pulsant, you’ll receive round-the-clock support and a team on-hand to help.  

Let the pros take care of your data, and free up any internal IT resources for day-to-day tasks. 

7) Geographic redundancy and business continuity

Geographic redundancy is a core feature of colocation services, helping businesses stay online even during major disruptions. As digital operations become more central to success, protecting critical data and applications from outages, disasters, or regional issues is no longer optional—it’s essential. 

Colocation supports this by providing access to distributed, high-availability data centres designed for maximum uptime and resilience. In the event of an unexpected incident, systems can automatically failover to alternate locations, keeping your business running without missing a beat. 

This is advantageous for a number of reasons: 

• Risk Mitigation: By colocating IT infrastructure in geographically diverse data centre locations, businesses reduce the risk of a single point of failure. In the event of a natural disaster, power outage, or other regional disruptions, the geographic redundancy ensures that operations can be swiftly and seamlessly transferred to an alternate location, minimising downtime and data loss. 

• Enhanced Reliability: Geographic redundancy spreads critical infrastructure across multiple locations, ensuring that services remain available and responsive. This redundancy guarantees that customers and stakeholders can access vital applications and data with minimal interruption, bolstering customer trust and loyalty. 

• Disaster Recovery Planning: Your colocation provider should collaborate with you to develop comprehensive disaster recovery plans tailored to your specific needs. These plans outline detailed procedures and failover mechanisms for swiftly recovering data and applications in the event of a disaster, supporting a rapid return to normal operations. 
• Regulatory Compliance: In certain industries, regulatory authorities mandate the implementation of disaster recovery and business continuity measures. Geographic redundancy in colocation environments ensures compliance with these requirements, helping your business avoid potential penalties and legal issues.
   

Why Colocation Is a Smarter Choice for Modern Business

Colocation isn’t just a technical upgrade, it’s a strategic move that gives your business more flexibility, resilience, and control. Whether you're looking to reduce costs, scale with confidence, or strengthen your security posture, the benefits of colocation data centres make a strong case. 

At Pulsant, we make the process easy. Our purpose-built, enterprise-grade colocation facilities are designed for rapid deployment—whether you need a single rack or a full private suite. Everything’s ready to go, and backed by our expert team. 

Let’s talk. Call us on 0345 119 9911 or reach out online to book a free consultation. We’ll help you find a colocation solution that’s right for your business—now and for the future.