Businesses have a lot to choose from when it comes to website hosting. Apart from the much-touted cloud hosting, companies can also settle for VPS, shared, dedicated, managed, or colocation hosting.

Though cloud hosting has been all the rage for the past few years, server colocation is giving cloud hosting a run for its money. That’s because colocation hosting has proved more secure, cost-effective, and less redundant than cloud hosting.

If colocation hosting has piqued your interest, and you’d like to learn more about it, then you’re in the right hands. That’s because, in this piece, we’ll be highlighting everything you need to know about colocation hosting. That way, you can decide for yourself whether colocation hosting is ideal for your personal or business website.

What Is Colocation Hosting?

Colocation hosting involves two parties. The first is the company in need of hosting services, you in this case. The second is the colocation provider who facilitates the premises for your web hosting.

The colocation provider is typically a data center with advanced infrastructure and long term stability. The company in need of the hosting services moves to the data center to take advantage of its power, internet speeds, physical space, and storage hardware.

In most cases, the business has to transport its server and other hardware to the data center. They have to liaise with the colocation provider to make bandwidth or space adjustments to accommodate the company.

You shouldn’t confuse colocation with managed hosting. Though somewhat similar, the two are very different. In managed hosting, the service provider takes over all server management responsibilities, while companies remain responsible for their servers in colocation hosting

Reasons for Colocation Hosting

It would seem counter-intuitive for a business to ditch their premises for an external data center when it can just have an in-house server. Well, there are plenty of reasons why companies move their servers and IT infrastructure to data centers.

Here are some reasons why companies opt for colocation hosting

For Power Reasons

The power demands for a server can be monumental, and some companies would rather let the data centers handle it. These data centers also have backup power in case of power outages that may be detrimental to your business.

Companies may move their servers to data centers to maintain operation in case of blackouts and the likes. Efficient power use, emergency power, and a lower energy bill are what companies get when they settle for server colocation hosting.


Data security is a huge concern, especially in highly competitive businesses. Data centers usually have robust security setups for both physical breaches and cyber-attacks. Think along the lines of biometric access, security personnel, and cameras.

That way, no one can gain access to your data either physically or through hacking. Many companies choose colocation for security reasons.


Some companies’ data storage needs are sometimes too monumental to handle by themselves. Apart from data storage, companies may also need physical space to store their IT infrastructure. When they choose to store it in data centers, they get enough data storage and physical storage, while they take advantage of some of the data center’s resources.

The most common physical storage options for data centers are:-

  1. Cabinets– Cabinets for your routers, hubs, switches, and other IT components.
  2. Cages– A cage is a secure place where you store your most sensitive equipment. Cages are difficult to access except for authorized personnel. Data centers can make custom cages for their clients if they make earlier arrangements.
  3. Suites– Suites are entire isolated rooms within the data center.


Servers and network setups need a cooling mechanism to prevent them from overheating. When components of your server overheat, they function less efficiently or can even malfunction.

With sufficient cooling, your devices can work at their optimum. Proper cooling also extends the longevity of the said devices. Data centers have state-of-the-art cooling mechanisms that your company could take advantage of. 

Round the Clock Support

Some data centers have 24/7 support staff to make sure that everything is running as it should. The support staff will address any issue that arises with your IT infrastructure, including repair, maintenance, and troubleshooting. They also carry out monitoring, evaluation, and disaster prevention.

Not to mention they have security working round the clock to guarantee the safety of your equipment. That way, you can rest assured that your server and everything else is in the right hands, and nothing can go wrong.

Reduced Downtime

In some companies, a few minutes of downtime is tantamount to millions of dollars in losses. For example, the Amazon incident that saw the giant lose approximately $100 million in an hour-long downtime.

You don’t have to be a multi-million company to feel the pinch of an outage or downtime. A few hours of downtime could greatly hurt your profit margins, let alone a few days. 

Data centers have sophisticated equipment and infrastructure, which significantly reduces the likelihood of downtime. 


Think of colocation as sharing costs with an already equipped establishment to advance your business agenda. It’s way cheaper than purchasing state-of-the-art equipment on your own. 

Plus, since you essentially split operation costs, your monthly tab is almost insignificant. In fact, all expenses add up to about $1200 a year for all these benefits. Plus, most colocation service providers also throw in a handy lifetime warranty for the hardware.

Is Colocation Hosting Any Good?

From a business standpoint, the question is a no-brainer. Businesses and organizations have too much to gain from colocation hosting. However, you only stand to get these benefits if you get the right colocation provider.

So the answer to the question is yes, but only with the right data center that can extend your hardware capabilities for your business’s benefit.

Server Colocation Is Great for Business

If your business infrastructure is inadequate, opting for server colocation is a wise move. Just remember to take your time before you settle on a data center. Be on the lookout for providers that offer personalized services to fit your company’s server and network infrastructure.

If you can’t get a server for your hosting, then cloud hosting is perfect for your business. You can then switch to colocation the moment you acquire your own server.

For more informative reads, be sure to check out other articles on the site.