As digital infrastructure becomes ever more strategic, technology leaders are reassessing whether public cloud continues to offer the cost and control benefits they were once promised. While cloud remains valuable, it is no longer the default.
This article explores the renewed relevance of colocation—especially for companies now re-evaluating their cloud commitments as part of a broader cloud repatriation strategy.
Cloud Adoption: The Early Promise
For many organisations, cloud platforms offered:
- Low initial overhead
- Flexible scalability
- Speed of deployment
However, as deployments have matured, a different reality has emerged: opaque billing, egress fees, vendor lock-in, and performance constraints. These factors are driving a shift—not necessarily back, but forward with greater intentionality.
Why Colocation Is Back in Strategic Focus
Colocation allows companies to deploy their own physical hardware within a professionally managed data centre—retaining full control over infrastructure while benefiting from shared power, cooling, and connectivity.
The benefits:
- Cost Predictability: No unexpected consumption-based fees
- Performance Control: Deploy optimised, high-density hardware
- Compliance Assurance: Sovereign data residency and auditability
- Hybrid Readiness: Seamlessly integrates with cloud where appropriate
According to TRG Data Centers, mid-sized firms typically realise 20–40% cost savings within the first year of partial repatriation.
A Structured Approach to Repatriation
Many businesses are not choosing between cloud or colo—they’re assessing which workloads belong in each.
In line with StackDistrict’s Cloud Repatriation Framework, the transition begins by assessing:
- Workloads in Scope
- Target Environments
- Cost Breakdown & ROI
- Resiliency and Growth Planning
This approach ensures infrastructure decisions remain aligned with business needs—not vendor incentives.
Side-by-Side: Cloud vs Colocation
| Attribute | Public Cloud | Colocation |
| Cost Model | Usage-based (variable, often unpredictable) | Fixed, with predictable Opex or Capex blend |
| Control | Limited to virtual layers | Full hardware and data control |
| Latency & Performance | Varies, shared tenants | Optimised, private systems |
| Data Sovereignty | Often vague | Clear geographic and legal control |
| Hybrid Support | Requires complex networking | Designed for hybrid workloads |
| Time to Deploy | Rapid | Slower initial setup, faster thereafter |
Recommended Read:
Cloud vs Colocation: What’s Right for Your Business? – Digital Realty
This article offers an executive-level lens on how global enterprises are balancing colocation and cloud to support resilience, cost control, and performance optimisation.
Final Thought: It’s Not Either-Or
Few businesses will abandon cloud altogether. But increasing numbers are reclaiming workloads that no longer benefit from the cloud’s flexibility—and instead require performance, cost stability, and strategic control.
Colocation is not a step backward. It’s a mature, intentional move—and one that many forward-thinking infrastructure teams are making.
Ready to Reassess Your Infrastructure?
StackDistrict helps technology leaders instantly compare and source colocation services across the UK—from high-density single racks to multi-rack estates, with 15kW per rack capability.
To explore pricing, calculate ROI, or start a repatriation review register for free: