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Definition of Co-location

Co-location is a hosting option for small businesses who want the features of a large IT department without the costs. It involves renting space in a co-location center or colo, where server equipment is housed in third-party data centers. These facilities provide the building, cooling, power, bandwidth, and physical security while the customer provides servers and storage.

Origin of Co-location

The origin of co-location can be traced back to the early days of the internet. As the internet became more commercialized and the demand for robust IT infrastructure grew, businesses sought cost-effective ways to maintain reliable and fast internet connectivity and secure their servers. Co-location emerged as a solution, offering access to better bandwidth and more reliable infrastructure than would be available in an on-premises data center.

Practical Application of Co-location

A practical application of co-location is for e-commerce businesses that require high uptime and robust security for their websites and transaction systems. By using a co-location center, these businesses can leverage the advanced infrastructure and connectivity to ensure that their websites remain operational and secure around the clock, without the need to invest heavily in private data centers.

Benefits of Co-location

The benefits of co-location are numerous. Businesses can reduce capital expenditures by avoiding the cost of building and maintaining their own data centers. Co-location provides a high level of uptime, as these centers are equipped with redundant power and cooling systems. There's also the benefit of scalability; businesses can easily expand their IT infrastructure without the need for physical expansion. Additionally, co-location centers offer enhanced security measures, including physical security and cyber security services.


Co-location involves renting physical space for servers that you own, while cloud services involve renting virtual servers from a cloud provider. Co-location provides physical control over your hardware, whereas cloud services offer more flexibility and scalability.

Co-location can be suitable for a range of business sizes but is particularly beneficial for small to medium-sized businesses that require the benefits of a large IT infrastructure without the associated costs.

When choosing a co-location provider, consider factors such as the physical location of the data center, the level of security provided, the reliability and redundancy of power and cooling systems, the bandwidth options, and the level of customer service and technical support offered.


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