Unlike large business corportations and organizations which have exclusive Internet infrastructure and expert IT professionals, small businesses might lag in such facilities due to financial limitations. Colocation hosting is the best suitable option in such situation that allows individuals and small companies to obtain the features of a large IT depatment without the costs.
There is an array of hosting options ranging from shared hosting to managing your own web server with dedicated hosting in which collocated hosting serves its own purpose. Collocated hosting allows you to place your own web server on the location or premises of the colocation provider. This is similar to running your server in your own office with the sole difference that it is located at a dedicated facility specially designed with all resources including a secured rack, regulated backup power, dedicated internet connection, high security and professional support and so on.
After either buying a server machine or renting one from the colocation provider, it is installed in the allotted rack by the experts. You are then provided with the bandwidth and IP with which you access the server.
Alongwith advantages such as high bandwidth, enhanced security, unlimited software options and high up-time, the hosting option also comes with certain disadavatages.
Colocation can be more expensive than basic Web hosting especially when you have to maintain and manage your servers yourself. So when the server needs to be upgraded, you need to purchase that hardware and install it. The configuring and debugging process can be complex too and would need high technical expertise.