"Colocation hosting allows a business to still own their own server equipment; however, instead of storing it at their place of business, they instead are able to store it in rented rack space at an off-site location called a data center or colocation hosting center. As with any service, colocation hosting comes with its own list of advantages and disadvantages.
Listed below are eight benefits and disadvantages for this type of hosting:
Benefits of Colocation Hosting:
Greater amount of bandwidth is available.
Colocation hosting is more cost efficient than hosting your own server.
Your server is stored in a secure location.
Makes necessary upgrades easy to obtain.
Room temperatures remain perfect for your equipment.
Should you move your business to a new location, your sever does not have to move with you.
You have more flexibility and the ability to customize your needs.
You have and full control over your server.
Disadvantages of Colocation Hosting:
Initial start-up costs are high.
Colocation Hosting is more costly than basic hosting.
You must purchase your own equipment and updates.
Fluctuating monthly costs due to bandwidth use makes budgeting difficult.
Locating a data center near your location could be challenging (click link to search for data center locations near your place of business).
Maintenance to server must be performed off-site at data center location.
Time restrictions at data center might make access for maintenance less convenient.
You are responsible for maintaining your own server, so you will need a tech savvy person on staff.
Overall, for a small to medium sized business, the advantages of colocation hosting far outweigh the disadvantages because you are getting more bandwidth than you could afford on your own. Additionally, if you have someone on your staff who can update and maintain your server equipment and you are able to find a data center location near your place of business, colocation hosting is going to make your life a lot easier and help your business run a lot smoother."