Housing vs colocation: what's the difference for an MSP?

For an MSP or IT integrator hosting client infrastructure, the choice between housing and colocation is not always obvious. Both services allow you to host physical equipment in a professional datacenter — but they address different needs and involve very different commitments. Here is a clear comparison to help you choose the right formula for your business and your clients.

Housing and colocation: two approaches to the same need

Housing and colocation meet the same fundamental need: hosting physical equipment in a secure datacenter with redundant power, professional network connectivity and a climate-controlled environment. The main difference lies in the amount of space occupied and the level of commitment.

Housing means hosting a small number of units — typically 1U to 4U — in a shared rack or dedicated zone in the datacenter. It is a flexible, per-unit billing formula, ideal for hosting a standalone server, network appliance, firewall or specific device.

Colocation means hosting a full rack or a fraction of a rack — quarter rack, half rack or full rack. It is a more structured formula providing dedicated physical space with reserved electrical power and dedicated connectivity.

What changes for an MSP

Housing for clients with little equipment

Housing is the natural choice for hosting the infrastructure of a client with only one or two physical devices — an application server, NAS, firewall or switch. Each client occupies a few units in a rack without needing a full rack. For an MSP managing ten small clients, housing allows efficient space sharing: a single rack can hold equipment from several clients, each clearly labelled and documented.

Advantages for the MSP:

• Per-unit billing, no commitment to a full rack
• Flexibility to add or remove equipment over time
• Ideal for start-up clients or those with little equipment
• Low entry cost — from CHF 90/month for 1U at AlpineDC

Constraints to anticipate:

• Shared space with other datacenter clients — no total physical isolation
• Access management must be coordinated with the datacenter for each intervention
• Less suitable for clients with very strict physical security requirements

Colocation for clients with dense infrastructure

Colocation becomes relevant as soon as a client exceeds 4 to 6U of equipment, or when they have power and connectivity needs that justify dedicated space. For an MSP, renting a colocation rack for a client provides a physically isolated environment with its own power supply, cabling space and access. It is also easier to manage operationally: all the client's infrastructure is in one place, in a clearly delimited space.

Advantages for the MSP:

• Complete physical isolation — the rack is dedicated to the client
• Simplified management: everything in the same place, same rack, same access
• Better fit for clients with security or compliance requirements
• Ability to offer a packaged solution: rack + connectivity + managed services
• Scalability within the rack — add equipment without changing formula

Constraints to anticipate:

• Commitment to a full rack or fraction — fixed monthly cost regardless of fill rate
• Less suitable for small clients with little equipment
• Requires initial planning of power and connectivity

The MSP model: smart pooling

An experienced MSP does not choose between housing and colocation — they use both according to each client's profile. A common model: the MSP rents one or two colocation racks for its own use (management infrastructure, monitoring, administration tools) and hosts small clients in housing in those same racks or in dedicated racks. Larger clients have their own colocation rack.

This approach makes it possible to:

• Centralise management infrastructure in a controlled environment
• Offer physical isolation to clients who need it
• Optimise costs by sharing space for small clients
• Evolve each client to dedicated colocation as their infrastructure grows

Comparison table

What AlpineDC offers MSPs

AlpineDC has long experience partnering with Swiss MSPs and IT integrators. Our housing and colocation offers are designed to fit multi-client management models:

• Housing from 1U, with Mac mini, 1U, 2U and 4U formulas — ideal for small clients or specific devices.
• Colocation in quarter rack, half rack and full rack — with dedicated electrical power and connectivity on AS198385.
• Housing technical access by appointment with our team, with remote KVM over IP intervention possible to reduce travel.
• Colocation technical access 24/7, 365 days a year, according to the access list provided by the client — no advance coordination required.
• Native IPv4/IPv6 network connectivity via AS198385, with peering on RomandIX, SwissIX, France-IX and DE-CIX.

If you manage infrastructure for several clients and are looking for a reliable datacenter partner in Switzerland, we are available to discuss a formula adapted to your organisation.

In summary

Housing and colocation are not competing offers — they are complementary. For an MSP, the choice depends on each client's profile: a small client with a standalone server will benefit from housing, while a client with dense infrastructure deserves a colocation rack. The real added value of an MSP lies not in choosing one formula over the other, but in the ability to offer the right solution to each client — and to evolve that solution as the infrastructure grows. If you would like to discuss your organisation or receive an offer adapted to your MSP activity, contact us.