What are the security considerations when choosing between colocation and IaaS?

Both colocation and IaaS operate under a shared-responsibility model, but the share of responsibilities is different. With colocation, the provider secures the facility with physical safeguards (e.g., surveillance, access controls, and redundancy). Clients are responsible for network and system security. With IaaS, the cloud provider handles infrastructure-level protections (e.g., data encryption, firewalls, and monitoring). Clients secure their applications and data.

The fact that colocation gives organizations direct control over hardware security means that it can be easier for organizations to comply with stringent compliance standards. By contrast, the provider-led security offered by IaaS can be a substantial benefit to organizations with limited in-house IT resources.