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Colocation Hosting: What Is It and Why Is It So Expensive?

Summary, Chances are, if you know anything about colocation hosting, you know that it’s different than dedicated hosting. And you know that it’s expensive. It’s about 15 times more expensive than dedicated hosting! But what is it, exactly? And why is it (sometimes) worth the extra cost? Curious? Read on to find out everything you ever wanted to know about colocation hosting.

Colocation Server Room

If you’re not familiar with colocation hosting, it’s a little like renting retail space in a shopping mall: You own the cash register and the merchandise. You are in charge of marketing your store, getting customers to shop there, etc. You pay rent to the mall, and the mall provides security guards, canned music, air conditioning, and building maintenance.

That’s sort of how colocation hosting works: You own a server, and you pay a monthly/ yearly fee to keep that server in a colocation facility that takes care of room temperature, facility security, data backup, and internet connections.

And, just like retail space, space in a colocation facility isn’t cheap. A typical colocation hosting plan can run anywhere between $100 and $10,000, depending on what services come with your plan.

So, is colocation ever worth the price? Or is it better to stick with a less-expensive shared server? Let’s take a closer look to see if colocation is right for you.

You Call the Shots, The Colocation hosting facility Does the Work

Owning your own web server means that you can do whatever you want with it. You have control over all hardware and software decisions, and you can choose your own operating system. You won’t have to deal with restrictions on bandwidth, databases, and disk space that come with most types of web hosting plans. You’re still running the show even though your server is housed somewhere else.

Another advantage to colocation hosting is that your colocation hosting facility takes care of a lot of the technical stuff, from ensuring that the server room is kept at the optimal temperature, to providing lightning-fast internet and armed guards to protect the facility.

Cost Is the Biggest Disadvantage of Colocation

Owning your server gives you a lot of flexibility, but you pay for all of that freedom. A server can cost anywhere from $1,500 to $10,000, and then you’ll have to pay at least $100 per month or more for a colocation hosting plan. Someone has to pay for all the fancy equipment and armed guards.

Another downer: You have to maintain your own server. Some colocation plans come with technical support, but most of them charge extra for this service. You’ll also have to pay for upgrades and server maintenance.

Is Colocation Hosting Worth it?

If you’re a business owner with a large, complicated website, or a team running multiple websites, colocation hosting might be right for you. Colocation facilities provide security and speed that you just can’t get from a shared host. But if you’ve got one or two very small sites, colocation probably isn’t worth the cost. Stick with a shared server.

Colocation Hosting: What Is It and Why Is It So Expensive?
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