Is Colocation Right For Your Business?

Colocation is one of today’s cost-saving solutions when it comes to managing online businesses. It is ideal for small and medium-sized companies who would rather outsource their data centers instead of building and operating their own.

If you are thinking of getting your business online and you have heard a lot of rosy things about colocation, rest assured that you have several options to choose from. As it is, there are many variations in web hosting tailor-made for the different needs of customers.

Types of colocation

There are colocation services that are sought out by businesses that need complete control over their hardware. Sometimes, these companies require more bandwidth to go along with the high traffic volumes. Generally, this kind of solution is best for those companies who cannot afford to compromise on performance and reliability.

However, if your company plans are modest or maybe you are thinking of running a small business site, colocation hosting is not recommended. (You might get a better deal and the most value out of a shared hosting solution or perhaps a dedicated server.)

Web hosting

When things are set up and ready to go, you will realize that colocation is almost the same as traditional hosting solution. You will do the accessing of your site the same way, and you will perform many of the same functions done by other customers.

The main difference would only be the fact that you own the hardware, and that they are housed in a facility together with other similar clients. Sometimes, the hardware and software are not your company property, and you are in effect renting them and the facility’s services.


In colocation, one of the most important considerations to work on is the choice of location or facility site of your provider. (It is also one of the hardest to solve – colocation facilities are located almost always in large urban centers near large network hubs.)

Ideally, your colocation service provider should be nearest to your own place of business. The main reason for this is that it should be easier for your technical people to travel and perform regular hardware maintenance.

To ensure better connection speeds and good performance, it is also a good idea to choose a facility that is near your target market.


Another major aspect that involves your business is cost. The costs incurred in colocation services are generally determined by the amount of rack space the server requires and the server type.

There are other costs that may be included in your agreement. Costs for managed and unmanaged colocation services are way off each other.

Managed services costs much higher because of the piled-on services you enjoy. The only thing you do is run your business, and leave the rest of the details to the colocation provider.

On the other hand, unmanaged services are lower and you enjoy the flexibility of operating and maintaining your site the way you want it.


Colocation may seem daunting at first sight, and it may seem complex at times. In the end, you will see a clearer picture of how the system works after some careful analysis.

You may need to discuss this with an IT professional, but in the end it is your decision (based on your needs) that matters. Is colocation right for your business?

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