The difference between colocation and dedicated server hosting is that with colocation, the customer owns the hardware, and with dedicated server hosting, he rents servers from the hosting provider. In the case of colocation, the client performs all the maintenance on the server. In contrast, with dedicated server hosting, the hosting provider performs the servers’ installation, management, and maintenance. Companies can fully manage their own IT or hand it over to a hosting provider.
In colocation, the data center only delivers electricity, cooling, and an internet connection, which means that customers are fully responsible for providing and maintaining the hardware. Companies can rent rack space in the data center. Rack space includes racks in a server room with all the necessary network equipment. With colocation, the client has complete control over the server and is responsible for every change made to security, hardware, or software.
Both hosting options have advantages and disadvantages. What you should choose depends entirely on the needs of your company.
With dedicated server hosting, the hosting provider remains the owner of the hardware. Dedicated server hosting is often cheaper than colocation because there is no investment needed for hardware, saving time and money on maintenance. Companies can entirely concentrate on business growth.
Thanks to an SLA (Service Level Agreement), agreements on how quickly can the hosting provider support the customer in case of emergency are stated in writing. With colocation, the customers themselves are responsible for the maintenance of the hardware.
If a project is expensive, a dedicated server may be a more cost-effective option, but colocation may be a better choice if you have the technical resources and knowledge.