Archive for November 3rd, 2008

Advantages and Disadvantages of Colocation

The term colocation (co-location) is increasingly being used in the web hosting industry.  So what’s the big idea?  It’s simple - convenience, less maintenance and more control over your web server’s configurations.  By storing your system in a large, well maintained facility, you can gain access to greater transfer and other features that would ordinarily be far too expensive to manage in the typical office setting.

As it often goes with most things, there is an upside and a downside to colocation hosting.  In this article we will overview this popular service and try to determine if the positives outweigh the negatives.

Advantages

The biggest advantage of colocation is the cost of bandwidth and associated resources.  Most of these facilities maintain redundant systems and multiple backbones to enable incredibly fast internet connections.  This offers a vast amount of potential bandwidth at a price that is generally determined by the actual amount used.  In most cases, the monthly fee for a colocation service is significantly cheaper than a dedicated Tier 1 line.

Unlike the managed environment, you actually own all the hardware and software components in the data center.  If the server becomes insufficient for your company’s growth, you can then visit the colocation facility and make the needed upgrades.  The luxury of installing your own software frees you of the predefined set of applications provided by a conventional web host.  If you feel that your business requires Windows NT instead of the Linux operating system, simply purchase the software and install it on your server.

Another benefit of colocation hosting is that such providers usually offer better protection against power outages.  Redundant backup generators, power sources and internet backbones help companies offer uptime guarantees of 99% and higher.  Colocation providers often keep an inventory of spare components on hand along with a team of professionals capable of making timely replacements.

Disadvantages

The biggest drawback to colocation is perhaps that a center that’s both reliable and convenient is hard to find.  If you have a staff of your own to manage the systems, you want to find a facility that is relatively close to your business to reduce travel time when upgrades need to be made.  Colocation centers are often located in bigger cities in the vicinity of major network hubs.  This is a factor that somewhat limits geographic options.

The most obvious disadvantage is that colocation is more expensive that managed hosting.  This is attributed to the cost of purchasing or leasing software and hardware components along with the actual space you’re renting.  Additional fees may also apply when your staff needs to perform maintenance.

Is Colocation the Move for You?

Even a small business that experiences a high volume of traffic can survive with managed hosting.  With the right company, this solution can be affordable and reliable.  A larger corporation might find it more cost-efficient to move their in-house operation to an offsite data center, preferably with an experienced IT staff and a well designed facility.  For a number of mid-level businesses, colocation is a solution that compromises between leasing a dedicated server and owning a costly data facility.