There comes a time in every hostler's life when they need to decide which route they will pursue. Deciding to do Colocation or a Dedicated server is a decision that needs to make wisely, as it can greatly determine your success in the hosting industry.

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Lets go into detail of what each is:

Colocation:

Colocation is where you purchase a server (Dell, HP, IBM, SuperMicro, Home Build, etc.) and ship it to a data center of your choice. The data center in turn places your server in a rack and attaches it to their network. Once the datacenter has your server all setup, you will then be able to remotely access your server.

This option you will also need to own your own operating system license and be very familiar with computer hardware.

Dedicated Server:

A dedicated server is very similar to colocation, however instead of having to purchase a server and ship it to a data center, you merely rent the server from the data center. This option you will not need to have your own OS license or intimate knowledge of server hardware. You will have the same remote access to the server box as with your colocated server.

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Now that we have the basic idea of what the two are, we can begin to dive into the positives and negatives of each.

Colocation, The Good & Bad:

Positive Notes:

• Cheaper monthly cost, as you only need to rent space, power and bandwidth.
• You own your server hardware, you don't have to rent it.
• You can have any server brand and hardware specification you desire.
• When done hosting, you can have the server shipped back to be resold.

Negative Notes:

• If your server has hardware issues, you will need to pay someone to troubleshoot (remote hands fees).
• You will need to ship replacement hardware to the DC or buy it from the DC.
• You are responsible for your server, the DC is only responsible for the network, power and space.
• Large upfront cost, as you have to buy the server box.
• You will have to own your OS license.

Dedicated Servers, Positives & Negatives

Positive Notes:

• You do not have any large upfront fee to buy a server, you only have to rent it.
• If the server has any hardware issues, it is up to the data center to fix it.
• You wont have to pay for replacement hardware, ship anything, etc. as it is up to the DC to repair any hardware issues.
• Widely available and hundreds of providers to choose from.
• You don't have to own OS licenses.

Negative Notes:

• You are limited on the server hardware you can use (Each provider only offers so many options).
• Your monthly price will be higher, as you are renting the server, power, space and bandwidth.
• Upgrades can be more expensive than the going rate of hardware.
• May get locked into a lease period.

The above gives us a good idea on the good and bad of each, now onto the hard question, "Which one is right for me?"

Everyone's answer is going to be different as it will greatly depend on your finances, hardware knowledge, and how much control you want to have over your server. Many people choose to go with a dedicated server everyday as you can easily purchase and it is on the provider to do all the hard work, however this is not the best option for everyone.

With dedicated servers, the "bigger" the server you buy, the more expensive your monthly payment will become. In many cases, it can be cheaper to purchase the server and colocate, however it will all depend how long you plan on keeping the server machine.

That brings on a all new question:

What is the life expectancy of a server? – Check our other blog posts for a in depth look!

That pretty much wraps up this look into the differences of Colocation and Dedicated servers, however I am sure many questions are still lingering. So post them up in the forums and we will get you answers!

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