The options of the table are to explore the use of cloud services, colocation, or maintaining the in-house data center. A recent survey found that the vast majority of small to medium businesses used a cloud service for basic infrastructure like email while using in-house servers for data and line-of-business applications. For those businesses, colocation makes the most sense out of the three options. Here is why:
The primary reason to go with colocation is when you have existing equipment (like servers) that are not at the end of their lifetime. Also, when your line-of-business applications require very specific hardware, the cloud services are no longer practical.
Colocation is always a better choice when you have a local LA colocation option. When the data center is local you have direct physical access to your equipment should you need it. There is also peace of mind when you can visit the data center at any point that you want.
There are points when business partners require that certain audit requirements are met for data and information systems. That level of compliance can be expensive and impractical for a smaller organization. A data center like Rack Alley will come with SSAE 16 Type 2 compliance as well as state of the art security.