Companies are increasingly opting for colocation spaces to reduce their IT maintenance and infrastructural costs. These services are not only reliable, but also ensure security and high bandwidth availability. The demand for colocation services is expanding worldwide. Reuters recently quoted that the colocation market is expected to reach nearly $43 billion by the year 2018. The market is growing at a compounded annual growth rate of 11% per annum.

Similarly, cloud hosting is also expanding at a promising rate. Businesses of all sizes are adopting cloud technology to streamline their processes, achieve economies of scale, and improve flexibility. A study by MSP Today quotes that cloud market will triplicate by the end of 2014. It is expected to reach $150 billion by the end of this financial year.

Thus, choosing between colocation and cloud technology has become a subject of debate among the industry experts.

It's not about picking between the two solutions, but delivering more with limited resources. Enterprises need to select the better of the two that meets their business requirements in a better way. Contrary to what service providers say, in my opinion the colocation and cloud technology should coexist. The two solutions together act as great technological combinations.

The industry experts believe that more and more companies will be adopting colocation space in the coming years. This will act as a major building block for the companies to migrate to cloud and managed hosting. It further means a direct move from an in-house IT infrastructure to the cloud. While, web and email applications are easy to migrate, the ERP and finance systems are difficult to migrate owing to compliance reasons in different countries across diverse industries.

Hence, following a hybrid approach that makes use of both cloud servers and colocation will allow businesses to match multiple workloads along with leveraging differing infrastructural parameters in various possible environments. This further helps them to meet their performance metrics, which stands unique for each application. Colocation plays a critical role in efficiently handling a company's mission critical data, which is expanding at an exponential rate.

In this highly complex IT ecosystem, supporting huge data requires a reliable colocation provider who can fuel their business environment. Moreover, security of information has always been a major concern for the enterprises. So, it's no longer about seeking data center services, but to form relationships with service providers offering data center solutions who can support their critical business objectives. By realizing the advantages of colocation with cloud technology will benefit businesses to have a proven uptime and cost savings, backed by security and stringent SLA norms.