A cold site is defined as a backup location that provides the necessary space and infrastructure for data recovery, but it does not come equipped with its own hardware, software, or data backups readily available. As a result, a cold site requires setup, including the acquisition of equipment and the reinstallation of software and data, after a disaster occurs.
The characteristic of being ready for immediate use applies to hot sites, which are fully equipped and operational, allowing organizations to quickly switch operations in the event of a disaster. The lower cost of cold sites in comparison to hot sites is due to the lack of ready-to-use infrastructure and equipment, which makes them a more economical option for businesses willing to invest time into recovery post-disaster. Additionally, since cold sites typically do not have any equipment prepared in advance, they align with the definition that indicates no immediate availability of resources without prior setup.