Colocation offers unique capabilities in data center hosting world

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Colocation services are among the core data center hosting options available to businesses. There are a lot of plans out there for organizations trying to have their IT systems hosted at a third-party facility, but colocation stands out from the rest for a few key reasons. While managed hosting, cloud computing and a variety of other solutions can all offer a number of key benefits for customers, colocation stands apart from the rest because of a few unique capabilities.

Issues of ownership
With cloud computing and managed hosting services, the third-party provider owns the hardware and clients lease space on the devices. This creates a variety of legal and regulatory issues, not to mention potential risk, because organizations have to trust a vendor to handle its data. With colocation, clients only lease the actual facility space. This means they have to depend on the vendor to provide power, network bandwidth and other facility systems, but they still house their own hardware. This makes colocation a particularly valuable service option for many companies, especially those that need specialized IT systems or extremely high levels of security or available. 

Furthermore, many colocation vendors can provide management solutions for clients that need them, adding to the flexibility of the service model.

Access to unique resources
Cloud computing is still maturing in many ways. Managed hosting has a relatively limited breadth of use. Colocation, on the other hand, can be specialized. Since the service is the data center itself, not the IT setup, colocation vendors can build state-of-the-art facilities that are designed to meet specific requirements. For many businesses, IT teams are equipped to specialize their IT system to meet their needs. However, doing so in the data center can be much more difficult. This makes colocation a unique asset for many organizations because vendors can give them something they cannot build on their own.

Cost efficiency
Many data center services are promoted as a way to reduce IT expenses. Colocation can achieve that, but reducing spending is not always the core purpose. Instead, using costs as efficiently as possible stands out. A colocation plan may actually be more expensive than an internal data center, but when it is, it will usually come with advanced capabilities that make it an extremely valuable service model that offers unmatched cost efficiency.

While colocation is also put into the same class of data center hosting as other services, such as the cloud, it actually offers a few unique capabilities that set it apart from many functions.