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Hosting: Collocation or Dedicated

The difference between a web hosting service that provides dedicated servers and one that provides collocation (a dedicated space to locate a server that you own) is essentially the difference between renting and buying.

Dedicated server hosting, different from shared server space, provides users with exclusive use of a server. With remote access to the server, you can install third party software, select your operating system and store as much data as you wish.

Collocation is essentially space rental, but you own the hardware. It's called collocation because many other businesses and individuals are renting space for their servers in the same facility. All of you benefit because of the economy of scale.

Advantages Dedicated Server Hosting
The main advantage of dedicated server hosting is having an exclusive server dedicated only to your needs, unlike shared servers where other people's sites can encroach on your bandwidth and compromise your security.

A dedicated server gives you higher reliability, allows you to handle more traffic and lets you install complex applications such as e-commerce, large databases and multimedia. Dedicated servers are the best option if your sites have dynamic content.

Disadvantages of Dedicated Server Hosting
The most significant disadvantage of a dedicated server is the high cost. While start-up costs are low as compared with owning your own server, you pay more in the long run. You also have to trust someone else to maintain the equipment and call the shots if a lapse in service should occur (as it invariably does).

Another disadvantage lies in the fact that the service provider owns the hardware and you own just the data; if you're unhappy with the service, you're stuck with it until your contract expires.

However, you can't afford to keep your site on a shared server if you need a backup server or access by a system administrator. Similarly, you may want to consider using a dedicated server hosting service if you have to install third party software or need multiple IP addresses.

Advantages of Collocation
Collocation is an excellent choice for online business owners who have the expertise to run their own servers but lack the space for them. Alternately, you may have adequate space, but you wish to avoid the cost of securing your facility with alarms and locks.

Collocation allows you full access to your server. While you can run your applications from a remote location, you can also enter the physical facility to maintain your hardware, replace parts or reboot your servers. Collocation services provide connectivity to the internet and the benefits of sharing expensive utilities.

Collocation providers pay for power, heating, ventilation or air conditioning. They also regulate them for optimal operation of the servers they house. Users share the infrastructure, such as fiber optic cabling and security. Collocation providers are usually immense buildings with gated and guarded facilities. They offer redundant power systems and internet connection, providing further guarantees of reliability.

Optional services include clean rooms for special operations, server reboots and software updates.

Disadvantages of Collocation
The main disadvantage of a collocation arrangement is that you're on your own when it comes to maintenance and repair. The cost of collocation has risen recently because of increasing demand, particularly with threats of natural disasters and terrorism. In some areas, real estate and utility prices have driven up the cost of providing collocation services.