Businesses are continually working on identifying newer and low cost means to conduct operations. Profitability is always a major consideration, with cost being an important factor in its determination. Any business looking to succeed in today’s world must have a website. At the onset a shared server will be sufficient though there will be need to increase capacity as traffic to the website increases. Setting up own hosting is not a viable option for majority of businesses. Colocation servers and dedicated servers are the two reasonable options in such a situation. Each of these, dedicated servers and co-location, has its advantages and your choice will largely depend on the long term goals you have for your business.
To rent a dedicated server is quite easy and very direct. The service provider will supply you with a complete suite of solutions. There is also an option to sign up for dedicated managed hosting which means everything including the administration of your server is done by the service provider. These options will work very well for businesses that have lower technical capabilities as well as minimal security requirements. Dedicated server fees over a period of years can easily accumulate to very significant amounts and this option should be considered only as a short term solution. When compared to server colocation, the biggest advantage here is the lower initial capital requirement.
Server co-location involve the buying of a server by the client and sending it to the data center where they provide uninterrupted power, reliable high speed internet connection, rack space and security. The initial investment for this option is bound to be higher than that of taking up dedicated servers but there are a number of reasons as to why it is preferred by businesses. One major advantage here is that you will get equipment that meets the specs you want. Your desired specs will have to be compromised when renting a server from service providers for dedicated hosting. Colocation does not have such issues since you acquire the server you want. The easy relocation of your hosting is another big plus for this particular option. Being the owner of the server means that you can easily move it as may be required by your business circumstances at any time.
Colocation services are much cheaper when compared to dedicated hosting and especially where the business is running several servers. Increasing the hardware capacity of your equipment is easier since you own the hardware. Despite requiring greater technical abilities, this is a preferred option especially among those who have sensitive data on their servers. Server administration by a third party may compromise the security of your data.
Business plans as well as budget are two of the main considerations that influence the service you choose. It is however important to note that the long term benefits tend to be found more in server collocation as compared to other services.