Pros and Cons of Colocation Services

Colocation Services Pros and Cons
Colocation Services Pros and Cons

Server colocation is a good option for companies which are looking for a more efficient way to operate their data center. Not all companies qualify to go for collocation services.

It is important to consider certain pros and cons involved with regards to server colocation before making a decision. They are as follows:

The Pros:

  • Optimum Security: Colocation facility is equipped with security and prevention tools. It is also designed in a way that to resist natural disaster and physical thefts.
  • Economical: Dedicated data connection proves to be more economical. You don’t need to build your own data centre facility which demands heavy outflow of capital. A data centre holds all the critical elements of your web hosting requirements.
  • Cost Savings: In-house data centres can be an expensive for smaller organizations. Colocation diminishes the expenses when maximizing resources by sharing costs over the pool of users in one common environment.
  • Increased Autonomy: Hosting provides a network infrastructure and physical housing for servers. It also has the capacity to support a breadth and depth of hardware types as well as providers.
  • Minimized downtime: Colocation Hosting not only benefits colocation customers from enhanced power capacity, but also reduces downtime. The colocation uptime rates are close to 100% due to redundant systems and they keep networks functional even when there is a system failure.
  • Optimum and Flexible Economy of Scale: By colocating servers in a common environment, smaller companies which lack the resources to invest heavily in their own in-house data centers are able to share costs with colocation customers. This allows the companies to take benefit of higher bandwidth at a lower cost and to have an access to expert team and they wouldn’t be able to afford acting alone. Colocation services also offers security savings that consists anything from a closed circuit cameras to biometric scanners.

The Cons:

    • High Set-up Cost: In the initial stages, the start-up cost is higher than the cost of basic web hosting service. If you are choosing a colocation, then you have to put your money in hardware equipment and software updates.
    • Location Challenges: To find a colocation facility in your office premises is a challenging task. If any crash happens, reaching your locality within the time frame is a difficult task.
    • Server Maintenance: You have to employ well-trained and professional staffs on your payrolls
    • Greater Upfront Costs: Upfront costs of colocation can seem too high, when compared to third party managed hosting providers. It is high because customers purchase their own equipment to work with pre-built configurations.
    • Requires More Management: It requires increased troubleshooting responsibilities when issues inevitably occur. This is because their colocation customers provide their own hardware  and other resources for deployments.


  • Location Issues: If your colocation is far away from your site or requires frequent upkeep, it can be a time-consuming enterprise. The budgets of data centre will continue to soar as the research indicates a shift from enterprise owned data centres to third party hosts.


Hosting a colocation gives great benefits to the clients to expand and to gain a competitive edge over their competitors. It has some drawbacks too. So, you should think and figure out whether to opt a colocation service or not.