What is Colocation Hosting? Understanding Its Working and Benefits 



Are you in search of a cost-effective solution to elevate the performance and security of your server infrastructure? Look no further, as Colocation Hosting could be the game-changing solution you've been seeking. With this hosting type, you can harness the capabilities of top-tier data centers while maintaining ownership of your hardware.

In the following comprehensive guide, we will explore the ins and outs of colocation hosting and how it can revolutionize your business. Let's begin! 


What is Colocation Hosting? 


Colocation Hosting shares similarities with Dedicated Hosting but distinguishes itself with a significant contrast. In Dedicated Hosting, you lease both the servers and the infrastructure necessary for their upkeep and storage. In contrast, Colocation Hosting grants you ownership of the hardware while renting server space within a specialized data centre. This arrangement delivers an array of benefits, including heightened internet bandwidth, robust server cooling systems, precise climate control, and a dependable power supply. 

Think of colocation hosting as owning a classic car and renting a parking spot in a well-equipped garage. The car remains your property, and you can use it any time while you also benefit from the garage's security and equipment for maintenance and optimal performance. 


READ: Why Colocation Hosting is Best for Small Businesses 


How does Colocation Hosting work? 


Colocation Hosting is a solution for businesses that own their hardware and software but need help providing optimal operating conditions for their servers. When these companies cannot manage their servers in-house, they opt for data centers that offer colocation services. 


In colocation, clients lease space from service providers, including physical space to house their hardware and environmental management services. Then, they relocate their hardware to the data center, where they set up and configure their servers. Typically, there is minimal to no physical interaction between the service provider and the client's hardware unless clients specifically request assistance, known as "remote hands" support. 


While the data center hosts the hardware, it assumes responsibility for environmental management services, including cooling, ensuring a reliable power supply, on-site security measures, and protecting against natural disasters.  

Thus, Colocation Hosting enables businesses to focus solely on managing their operations and achieving goals while reducing IT expenditures. 


What do colocation hosts provide? 


Now that you know how Colocation Hosting works, understanding the offerings of a colocation host is essential. We’ve listed below a few of them. 




The hosting company takes responsibility for securing and controlling access to the physical location. This includes implementing security measures like cameras, biometric locks, and personnel identification. While clients are responsible for securing their servers against cyber threats, the provider ensures that unauthorized individuals cannot come closer to the hardware. 




The data center is responsible for offering electricity and other necessary utilities to the servers. This includes energy backups like generators to ensure uninterrupted operation. An efficient power supply is essential, and data centers often offer robust power supply infrastructure that guarantees maximum uptime. 




Servers and network equipment generate heat significantly, so hosts supply redundant cooling systems to maintain optimal operating temperatures. Proper cooling prevents damage and extends the lifespan of the hardware. 




Data centers offer physical space for hosting servers, and this includes three storage options: 


  • Stand-alone cabinets:

    Each cabinet can accommodate multiple servers within racks. Providers typically rent out whole cabinets. However, in some cases, they may also offer partial cabinet options.

  • Cages:

    A cage is a separate, secure area for storing server cabinets, providing physical isolation for the equipment. It can be tailored to accommodate as many cabinets as the customer needs.

  • Suites:

    These are fully enclosed, secure rooms within the colocation data center, providing the highest level of physical security. 


5.Disaster recovery 


Hosts are responsible for implementing a disaster recovery plan, which may involve locating the data center away from disaster-prone regions. This also implies reinforcing the site against potential disruptions. For instance, a host uses backup generators for power outages or establishes agreements with more than one internet provider in case one experiences an outage.  




Some industries, such as healthcare and finance, handle sensitive and confidential data and must comply with strict regulatory rules. They require unique configurations and infrastructure to meet official standards.  


While clients can manage the setup of compliant servers, ensuring the hosting environment meets compliance requirements is complex and costly. Thus, many businesses opt for data centers.  


6 Benefits of Colocation Hosting 


Here are the key benefits of Colocation Hosting: 


1.Cost savings 


Colocation Hosting significantly reduces power and network expenses.  


While building and maintaining a top-tier server infrastructure can be costly and complex, with colocation services, businesses can benefit from a secure, high-quality data center without investing in expensive equipment.  


Moreover, colocation services provide clients with predictable hosting bills, which can be invaluable for budgeting and financial planning. Reduced costs and consistent expenses help stabilize businesses and free up capital for other critical IT investments. 


2.Expert support 


When you house your servers in a data center, you gain access to 24/7 expert support. Colocation Hosting providers specialize in managing the facility's daily operations, freeing your IT department of these responsibilities. With power, cooling, security, and network infrastructure managed, your business can concentrate on hardware and software maintenance. 


3.Scalability and growth 


Colocation Hosting offers flexibility and room for growth. Clients can scale their resources based on their evolving needs without the burden of recurring capital expenditures. This adaptability is crucial for businesses looking to expand and thrive in a competitive market. 


4.High availability  


Colocation Hosting ensures constant data availability for clients and their users as its primary goal is to maintain consistent uptime, ensuring servers remain operational.  


Usually, the colocation providers implement emergency services and infrastructure redundancy to achieve better uptime levels. And these efforts are often supported by service level agreements (SLAs), which give clients a safety net in case of service disruptions. 


5.Remote management 


While colocation servers may be physically distant, clients can maintain complete control over their hardware. Remote access and management software, along with the option of remote hands services, allow clients to manage and maintain their servers without the need for frequent on-site visits. Remote hands services involve data center technicians assisting in various management and maintenance tasks, streamlining operations, and reducing downtime. 


6.Clearly defined SLAs 


Colocation service providers offer clearly defined SLAs, outlining the specifics of the service, including audits, processes, reporting, and response times for issue resolution. Trustworthy providers are often open to negotiating customized SLAs to meet their client’s unique needs and expectations.  


Other things to consider when colocating your hosting 


With the above listed benefits, there are some other things also that you should consider while colocating your hosting:  


1.Restricted physical access 


If you require frequent physical access to your servers, you should consider the logistical complexities of moving them off-site. Physical access is attainable if you are in close proximity to the facility or prepared to undertake travel. Consequently, if your needs necessitate regular physical access, it is prudent to explore a provider located nearby or in proximity to an airport. 


You can also opt for a host situated in a different geographical region from your primary office. Nevertheless, it is essential to take into account associated travel costs. 


2.Managing and maintaining 


If you seek a fully managed server environment, Colocation Hosting alone may not suffice. A colocation host primarily handles the data center, while server configuration and maintenance remain your responsibility. For those requiring a higher level of hands-on support, considering additional managed services alongside colocation is advisable. However, managed services may involve additional costs. 


Is Colocation Hosting right for you? 


Colocation Hosting is an excellent option for businesses seeking the benefits of on-premises hosting without the high costs. With colocation, you can house your servers in a data center and utilize the provider's shared bandwidth and infrastructure. This can help you save money on power, bandwidth, and security while improving uptime. 


Vodien offers a range of Colocation Hosting plans to meet the needs of businesses of all sizes. With us, you can choose the space and power you need and even scale your resources up or down per your evolving needs.  

If you have any queries or suggestions or need assistance with choosing the right plan for your business, feel free to email us at [email protected]



Skip to section