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Co-location
Co-location simply means that if you have a server, usually web server the web hosting company can place it in its own Data Centre. It's convenient as you don't have to worry about secured cage or rack, regulated power, dedicated internet connection, security and support. All this is being provided by the web hosting company including secure physical allocating of your hardware, which decreases the potential for robbery, fire and many other problems.
Most web hosting companies that offer co-location services can provide you with Fire-proof facility, video surveillance, extinguishing devices, multiple connection feeds, filtered power, backup power generators and high bandwidth, which are very important for the company's customers.
Why Choose Co-location?
As it was mentioned before the web hosting company is to provide the necessary security and support level. But what you also should consider is that with co-location every aspect of your activity is fully customizable, high Bandwidth is available as much as large Disk Space. There's also maximum uptime for big web sites, which also can easily be upgraded and updated with only purchasing some necessary equipment. As you determine the hardware specs you receive better performance, greater flexibility and many other advantages including saving on overall hosting costs.
Why not Choose Co-location?
Applying co-location you face some disadvantages, such as that you must purchase and maintain your own equipment. Web server Administration is your responsibility, this kind of services is suitable only for big sites with large traffic usage and it's a very expensive kind of web hosting services. Though there is a new kind of service named Managed co-location that spares you from all the troubles of maintenance, but, unfortunately, it doesn't concern payment rates.
Managed or Unmanaged(Non-managed) Co-location?
Managed Co-location implies that web hosting company takes care not only about physical server support but also about monitoring, day-to-day maintenance, daily backup, technical support and troubleshooting.
With Non-managed co-location your must have your own IT stuff that is to handle system management, its monitoring and maintenance. And in mean time the web hosting company continues providing you with physical hardware support and insures its secure allocation.
Co-location is suitable for big web sites requiring much Bandwidth and Disk Space. It's one of the most expensive kinds of web hosting services though it gives you the most freedom in your web site and server configuring.