So, the question is, should you physically own infrastructure, rent space and own servers, or rent infrastructure in the clouds? It is important to better understand each option and assess your circumstances and needs before formally deciding on an approach.
Owning Server and Renting Space (aka, Co-Location as a Service)
Co-location as a service refers to renting space in the clouds by a service provider in order to physically host your server or servers. This is slightly different from cloud infrastructure where you rent a service that provides you access to infrastructure without necessarily knowing the details behind it.
You would utilize this option because you want to have the ownership and control of the box and content therein but do not have the budget to establish a physical datacenter on premises therefore minimizing expenses. This includes not having to hire and manage datacenter staff for to support this facility.
This approach can be particularly advantageous when you are a small company or start-up organization that has a website that you rely on for revenue but you are not in a position to establish a data center on-premises. Other advantages of a co-location service are that they typically provide scalability bandwidth based on your need, generator backup, and remote console access.
A distinct advantage for those who are agile proponents in a startup or small company, is that you do not have to spend time establishing a datacenter; instead, you can focus on the development of the project. This allows you to minimize datacenter infrastructure debt and scale to the space needs over time.