Dedicated Server Hosting > Blog > Colocation Server Hosting Vs Dedicated Server Hosting: Which One Should You Choose For Your Business?


Colocation Server Hosting Vs Dedicated Server Hosting: Which One Should You Choose For Your Business?

When it comes to choosing a hosting plan for their computing infrastructure, businesses often find themselves on the fence. Agreed, there is no single answer to the hosting solution your enterprise should opt for as everything boils down to the specific needs of your business. To help you make a more informed decision, let us discuss both kinds of hosting solutions one by one.

Colocation Server Hosting

Colocation server hosting is the practice of renting space in third-party-owned data centers to place physical servers and other IT infrastructure. Unlike in other forms of hosting, the customer does not rent or lease the server from the host here. He rents the space in a third-party data center and physically transports the servers to the colocation site.

A colocation data center offers high internet bandwidth, interrupted power supply, cooling systems and multi-tier security systems needed to create an ideal environment for reliable management of your hardware. In colocation, the customer maintains complete control over all the hardware and software for that server.

Advantages of Colocation Server Hosting

1) Security and Compliance

Because colocation data centers are equipped with a high level of security, they make an ideal option for enterprises that seek near-complete control over their servers. Colocation data centers have a robust multi-tier security system that comprises armed personnel, biometric scanners, security alarms, fire extinguishers and high-definition cameras at strategic locations.

They also have robust air-conditioning systems for maintaining optimal levels of temperature and humidity. In addition to this, almost all data centers don’t allow anyone except a few authorized personnel to access server racks. Colocation facilities boast of stringent cybersecurity protocols like firewalls and managed back-up services that help restore data in case of a breach.

Certain industries have stringent compliance requirements related to data privacy that need to be fulfilled for legal purposes. For example, businesses operating in the healthcare sector in the USA need to comply with HIPAA (Health Insurance Portability and Accountability Act of 1996). Colocation offers a secure site for housing servers and helps enterprises fulfil compliance requirements.

2) Cost Savings

Colocation data centers often house hundreds of servers within a single facility. Businesses that choose colocation hosting leverage the benefit of economies of scale as the expenses get shared with other tenants.

Companies that install servers on their premises have to bear expenses related to floor space, licensing and hiring new staff. Colocation eradicates the need for all such expenses and allows significant cost savings.

3) High Availability

Most of the colocation data centers enjoy uninterrupted power supply that trims down downtime considerably. Colocation data centers allow enterprises to access a professionally managed environment.

All colocation facilities have a host of amenities that keep servers up and running round the clock. Generators, reserve fuel and battery backups ensure a steady supply of power. In addition to this, there is a team of experts to resolve all the technical issues within the stipulated time frame. These facilities result in high availability of servers that facilitates seamless functioning of your business processes.

4) Access to Amenities

Colocation data centers offer a comprehensive range of amenities under one roof. By placing servers in a colocation center, businesses get access to host’s high-speed bandwidth. Besides a high level of security and steady power supply, advanced climate control systems help servers operate at optimal efficiency. Security professionals and support technicians offer round-the-clock surveillance to ensure seamless business operations.

Disadvantages of Colocation Server Hosting

Colocation server hosting has its downsides too. If you want to update your server or replace it, it requires you to visit the colocation facility and get the staff there done it for you. This can take your business offline for some time even when done quickly.

Many colocation service providers offer bandwidth and electricity at locked-in prices that you have to pay for several months in advance. If you pay an advance price and the price for either of the services falls, you end up paying a high amount.

Dedicated Server Hosting

Dedicated server hosting is where the client rents an entire physical server and its resources from a service provider. The client does not own the server. The host bears the responsibility of maintaining the hardware, upgrading it and installing software updates and patches. These services come at an additional cost.

Advantages of Dedicated Server Hosting

1) Performance

Unlike shared hosting, dedicated server hosting does not require you to share disk space, bandwidth and other resources with other clients. As a result, the performance of your website does not get bogged down on account of heavy traffic on other websites. Websites hosted on a dedicated server usually deliver high performance and load faster than sites hosted on shared servers. Now that Google considers page loading speed as one of the key ranking factors, a fast loading site ranks higher on Google and offers a better user experience.

2) Flexibility

A dedicated server can be tailored to accommodate the fluctuating needs of your business. A dedicated server lets you have your own server configuration-you can have your own RAM, disk space and bandwidth. You have the flexibility to modify or add services and applications whenever your business requires so.

3) Security

In dedicated hosting, you have an entire dedicated server at your disposal. You do not share server resources with other clients. As a result, your website remains immune to malware and potential spammers. Dedicated server hosting is particularly significant for organizations that handle sensitive transactions such as banks and other financial institutions.

4) Unique IP address

As opposed to shared hosting, a dedicated hosting plan offers a unique IP address for your website. As a result, your site remains unaffected by issues that hamper the functioning of other websites.

5) Administrative Powers

A dedicated server hosting plan lets you have administrative control over the server. In addition to root access to the server, you get to install programs and customize server configuration. You can monitor server usage and identify potential issues affecting your server.

Disadvantages of Dedicated Server Hosting

1) Cost

A dedicated server does offer high performance and security but it is more expensive than any other hosting solution. This is because there are no tenants to share the expenses with. Besides, there are additional charges for hardware upgrades and software installations. Choosing a dedicated server hosting, therefore, requires careful consideration.

2) Needs technical know-how

A dedicated server can be difficult to handle if you do not have the requisite technical know-how in server administration. Technical knowledge is needed for installing and maintaining the server and for carrying out additional tasks that are under your control.

Which one should you choose for your business?

Now that we have discussed the pros and cons of both types of hosting solutions, let us see when you should choose one over the other. As far as colocation is concerned, it is a great solution for those who need near-complete control over their servers and have the budget to spend on IT hardware. Since colocation involves large upfront costs, it is more expensive, at least in the short term, when compared to a dedicated server.

In colocation, you own the servers. So, if you need to modify or add servers, you have to send a technician to the colocation center or pay a small fee to the colocation host to get it done. Colocation servers are best suited for businesses that require advanced technology and have the capital to spend on IT infrastructure.

A dedicated server, on the other hand, belongs to the service provider and not you. So, if a component fails, you just need to raise a ticket and the host will get it fixed at their expense. A dedicated server is a great choice for businesses that seek superior performance, security and control but are reluctant to buy new hardware. A dedicated server may have lower upfront fees but higher monthly costs when compared to colocation.

Looking for server hosting or dedicated server hosting for your enterprise? Connect with our technical experts on our toll-free number today.

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