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Part II: Is Colocation Right For Your Business?

Part II: Is Colocation Right For Your Business?


It can be hard to decide what type of hosting service is right for your business and IT systems. There are various types of hosting services, which vary in price and offer different amounts of control over each system. Colocation is at the top of the list of the various types of hosted services because it typically costs more than the cloud, but also offers the most control over your equipment. In ‘Part I: Is Colocation Right For Your Business?’ I explained what Colocation is and its major advantages. In this blog, I wanted to inform you on the alternatives to colocation. You may not be ready to own your own hardware and software, so it is beneficial to know your other options for hosted services.


Cloud Servers

With Cloud servers, you do not own or have any control over the hardware. The flipside to this is that cloud servers are relatively inexpensive and are easy to administer. However, performance in the cloud may also fluctuate. By utilizing the cloud, your business is dependent upon the reliability of your internet connection. So, when your internet is offline, your business is offline. But, because cloud servers use the internet, you can access your data and files anytime and from anywhere that has an internet connection.


 Managed Dedicated Servers

When you choose Managed Dedicated Servers, you have full control over the software, as well as the hardware. You can determine what spec the equipment will be and how it will be configured. Unlike cloud servers, you are not sharing hardware with this option and you will also receive maintenance from engineers in the data center. However, one downside to this service is that typically you cannot upgrade your servers during your service contract.



Of course choosing to have full colocation is the better choice of the three because you have total control over your server, the configuration and the software. You can also expand the memory or change the storage setup, and you receive all of the benefits of the Managed Dedicated Sever option. However, with these great benefits comes cost implications. As mentioned, you may not be ready to own your own equipment. Because colocation involves owning your own equipment, you would have to purchase all of the hardware upfront and sign a minimum term contract for the space in a colocation facility.


Colocation Terminology

While researching the various hosting options, you may come across some terms you don’t know. Here are some extra colocation definitions you may want to gloss over:

Multi-tenant Cloud Hosting: this allows more than one entity to run applications and services on the same hardware. Multi-tenancy is the opposite of dedicated hosting because the hardware is shared.

Wholesale Colocation: when a business (tenant) rents a complete data center space. Typically the tenant is responsible for handling all of the IT operations within the space

Retail Colocation: when a business (tenant) rents space within a data center, which can include a rack, a space within a rack, or a caged off area in the building.

White Space: this term refers to the area where the IT infrastructure, or equipment, is housed.



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Teltek is a Certified Avaya Business Partner, NEC Dealer, Zultys, and Microsoft Partner with two locations in the Baltimore Metropolitan area. We specialize in providing one call technology support for small to mid-sized businesses and nonprofits in Maryland, Washington, D.C., Virginia and Pennsylvania.




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