Colocation Hosting- Is it Right for Your Business?

There are many hosting service providers around us, but one hosting is not enough when it comes to a large enterprise. We have entered the era of technology and the internet that, from business to communication, everything depends on the internet. Therefore, many companies, institutes, and organizations seek a reliable hosting option.

Here the concept of Colocation hosting emerged and helps the companies have their hosting and data centers to help them evolve their business to the new heights of success without minor hosting issues.

If you are new to this topic, you must be thinking about what exactly Colocation hosting still is and how it works to benefit your company? Indeed, it comes with many advantages and disadvantages, and we will discuss every part of it briefly. This guide will help you know more about it and understand all of the crucial details before you make any decision for the business.

What is Colocation Hosting?

Colocation hosting is a hosting service primarily provided by many data centers. This hosting service leases space in their data center and servers, particularly for the company.

Any company, organization, and client can own a server and all the hosts available. Such clients can have full authority over these servers, including the hardware and software. At the same time, the data center or the storage facility is responsible for maintaining the server in a secure environment for their clients.

Many people may confuse Colocation hosting with cloud service, and they are far more different. Cloud service lets you lease space to keep your data over it while the colocation enables you to have your server (Hardware) and space.

The main idea of colocation hosting helped many businesses from purchasing and thriving for the desired hosting. Indeed, many host providers are out there, but you might not find what you need. These host providers may manage and maintain the hardware and software but might not provide the company with diligent space and hosts.

Why is Colocation Hosting needed?

Large enterprises and companies have very critical and complicated infrastructure. They have millions of employees who might need a different host for business and in-house communication.

So, the colocation hosting is not just leasing space and a personal server for the company but also helps them improve the internal operations. The company has all the access to software settings and physical up-gradation as well. Colocation hosting can help the company take the customer server concept and locate it from their offices to the data centers. Here the data center will look after the physical condition of the server. From maintenance of the damaged servers to upgrading the hardware is all up to the company. This minimizes the cost of maintaining the servers physically and saves a lot of IT budget.

Why Do We Seek Data Centers for Colocation Hosting?

Honestly, this is just one of the reasons why a company should consider the Colocation hosting from a data center. Here is a brief list of reasons why colocation is required:

·      Team of experts

Data centers with so many servers are always managed by experts 24/7. They are experienced and have all the necessary information to keep the system up and run smoothly. Thus, hiring a team for their server in-house can be too costly for many companies. But the data centers are going it for millions of servers simultaneously.

·      Power

The colocation servers need specific facilities like electricity, energy, backups, and generators to get them up and running all the time literally. A company can own a server and keep it in their building and keep it powered, but to think of it and planning will help you realize how costly, time-taking, room-taking, and expertise it will require. The data centers are designed to do so, and it is their 24/7 responsibility for secure uprunning. Thus, the company saves a lot of money, electricity, and man energy.

·      Security

Companies are storing their million-dollar business data over the servers. Thus, it is crucial for them that servers are guarded and monitored. Data centers are providing them with not just physical security but also cyber security. In short, the company does not have to hire an entire team for safety. The data centers have a team of experts already, and they are protecting several other systems as well.

·      Environment

Servers that provide you with hosting are machines running on high electricity consumption for many years. Honestly, you can never shut them down, which will lead to the collapse of the entire system, including business. Therefore, a company cannot afford to give them a whole physical space with a climate-controlled environment.

·      Scalability

Colocation is one of the intelligent strategies that many small or large businesses use to boost their workability and scalability. You can quickly scale down and scale up according to the company’s requirements without any issue halting the way. Your data center is there to support you throughout the long growth journey by providing your clients with cloud colocation hosting. Thus, you are expanding your horizons to the new market as well.

·      Risk Management

Some mishaps and technical problems can lead to disasters in the host server system. So there is always wise to have a recovery or backup plan. Since your colocation hosting service is outside the company’s premises, you might not be able to lower the risk of disaster. The data center will always have a disaster recovery plan ready for you by providing backup for both servers and the power generators.

How to choose Colocation Hosting providers or Datacenters?

No doubt, once you start your research for reliable colocation hosting, many centers will be coming up with offers. Honestly, 40 to 50 percent of the business relies on colocation hosting and these data centers.

Your business is significant, and getting a colocation hosting provider involved can be risky. But at the same time, you must keep your terms and ideology of the business transparent. Here, we suggest checking for the SLA (Service level agreement) of the colocation hosting providers.

Moreover, the following is a brief list of the question you should consider asking the colocation hosting providers or the data centers:

  • Is the compliance certification given to the providers by genuine third-party auditors like HIPAA and PCI?
  • Is the data center located in a stable geographic location?
  • Does the data center facility have all the latest technology, including the latest security systems?
  • Does the data center facility have a team of experts that will manage any technical and physical risks?
  • Do they have 24/7 customer service to help us with any server authorization and physical setting issues?
  • Is the facility safe for any natural disaster and man-harm?
  • Do they have successful and satisfied customers, and how long are they serving them?
  • Do they have access to multiple networking systems to avoid the server down and uptime issue?

It is better to sit down and discuss every question in detail with your data center agent before deciding. Honestly, the data centers are put up there for hosting and providing service, so it is vital that you know two or more things about them.

Here data centers are also offered based on tier ranking. Tier IV is the highest-ranking and is considered the most potent rank among the data center. Similarly, Tier III is also an ideal choice since they thrive on being as successful as Tier IV. Tier II is more like good took. While the Tier I will provide you with most minor of the facility and the capacity as well. So, take your time discovering the best one for your business. For now, we suggest looking into Tier IV and Tier III for the best service possible according to your budget.


  • Reduced IT costs in the most efficient way.
  • It saves budget on a server room, maintenance, and infrastructure cost.
  • It helps in reducing the downtime as well.
  • Colocation hosting also provides Optimal redundancy, especially by the providers.
  • Better security systems, including both physical and technical like cyber security.
  • Offers high-density clouding and cloud computing environments.
  • Interconnected with the business computer with advanced networking systems.
  • Teams of high-tech certified experts are available at the data centers.
  • 24/7 customer service and backup systems.
  • Facilities that meet the compliance provided by PCI, HIPAA, SOC 1, SOC 2, HITRUST, and many other third-party auditors.
  • Better disaster recovery plans without damaging the business.


  • The distance from the office to the data center might cost a visit. This often happens when the data center is located out of the city or far in a different state. Thus, you might have to book a flight for emergencies.
  • Sometimes the companies face server down issues, including loss of power in the data center, lousy weather, etc. If the data center has access to multiple networks, you are okay; otherwise, you will have Uptime issues.
  • It might be costly for small businesses.
  • User companies must purchase the server equipment themselves and upgrade the system while the data center will watch over it.


No doubt Colocation Hosting is a great service that helps many organizations to have their own servers for host under the server-friendly data center. Of course, it has so many perks that you can count but you still have to deal with the upgradation and few technique issues. But of the brighter side, it helps you with the optimal hosting entirely reserved for your company or organization.

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