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What are key advantages and disadvantages of Colocation and Dedicated hosting? Which one you do you think is better and which on is best to choose?

Here are some of key advantages and disadvantages of Colocation:

Advantages:
1. Relatively economical hosting solution
2. Your server is placed in a secured environment
3. You can customize your server configuration as per your business needs
4. You get complete control over your server
5. You can easily upgrade your server whenever required

Disadvantages:
1. Quite cost compared with basic hosting provision
2. The cost may varies on monthly basis, depending on the bandwidth you have used. This makes budgeting more difficult.
3. Initially total cost outlay will be higher
4. You may require technical expertise as you are responsible for the up keeping your server
5. You may have to procure your own equipment

Some of the key advantages and disadvantages of dedicated hosting are:

Advantages:
1. The dedicated server is given on lease to a single user or company.
2. Dedicated server is highly robust, secured, stable and reliable web hosting server.
3. In dedicated server hosting, the web host facilitates user with web infrastructure, and regular maintenance of server.

Disadvantages:

1. Dedicated server is comparatively quite expensive
2. If your dedicated server encounters any type of technical or equipment issues, then there can be added hourly- or per instance-basis fees need to be paid to the host.

Hence, I would prefer to go with dedicated Hosting and recommend you the same.