What is the difference between dedicated server and colocation?

[lavanya]

Dedicated Server (sometimes called Managed Server) and Colocation thrown around. The difference is a small, but very important one.

Simply put, a collocated server is a server which YOU own, and which is hosted in a datacenter for a monthly fee. You might think of this like renting a downtown parking space on a monthly basis.

Colocation is a great option because collocation facilities typically have access to very fast, robust and reliable internet connections which would not be accessible from your own office.
Another benefit of renting collocation space is that you often get access to other perks such as round-the-clock security guards, backup power generators, tech-friendly fire-prevention systems and other interesting perks.

Of course, there is a downside. Since you own the server, its maintenance is your responsibility. For companies that are concerned about things such as risk and compliance, this added control might actually be a plus.

But for less sensitive implementations, there is another option available. Instead of buying a machine, setting it up yourself, trucking it over and maintaining it by hand… you can rent a server from an internet provider and let them take care of the maintenance for you.

Just like with the collocation option, you get to host your servers in a secure datacenter with all sorts of built-in perks. But the real value comes from having highly-trained maintenance staff on-hand to manage your server for you… while still having the same control, power and security which you would have from owning your own server.

Often, the maintenance and labour costs alone are enough to cover the monthly server rental fee. Of course, these people are only trained to deal with a certain scope of standardized web hosting scenarios.

Another great benefit of using a hosted managed web server is that it makes financial sense. Instead of investing in hardware up-front, you can free up more cash by renting.

And if you want to save even more money, you can also opt for a fully virtualized dedicated web server which will allow you to pay only for what you need. These are often called Virtual Private Servers or VPS for short.

Please keep in mind that although Virtual Private Servers share resources with other clients, they are NOT the same as a standard shared hosting account. This is truly a dedicated web server just for your business…. with none of the restrictions and bottlenecks associated with cheaper web hosting services.