Choosing the Right Kind of Web Hosting - Colocation
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To put it simply, colocation is the same thing as having a dedicated server, except that you actually own the server. The largest companies in the world use this type of hosting. The performance of this type of hosting is about the same as for dedicated hosting, but you get the added peace of mind of knowing that the server is actually yours. Colocation hosting involves housing your server at a host company's facility so that it is in a safe and clean environment (see picture of a typical data center).
The only costs of using this type of hosting is the cost of housing your sever at the host facility, and the cost of data transfer and bandwidth from your host company. In all, the monthly cost of colocation hosting is less than that of renting a dedicated server, but the initial cost is much higher. Depending upon the type of server you would need, it can end up costing thousands of dollars to purchase the server. Add to that maintenance costs, plus the cost listed above, and you will still end up paying a good chunk of money every month to use colocation hosting.
Colocation offers the most control over your server, aside from running the server from your own home or business. Extensive IT knowledge is required before you should consider this type of hosting. If you don't have the knowledge, you'd better have a deep wallet to pay someone else to maintain the server for you!
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