Colocation Hosting VS Shared Hosting

May 5, 2022 | By: Scott Lard

When it comes to hosting, your business has a choice — not just in terms of hosting providers or data centers, but also in the type of hosting you choose. Colocation hosting and shared hosting are popular options for many businesses. They are both provided from remote data centers but are different in their own ways.

Here, we’ll discuss how colocation hosting differs from hosting in a shared environment and how your business can make the choice for one or the other.

Colocation Hosting Server Room
With colocation hosting, your server is located at a third-party location, such as a data center, but is managed by either your in-house IT staff or the managed services provider you work with. With colocation hosting, the data center provides power and bandwidth and maintains security over the server environment, but the client has full authority over the management of the hardware and software of the server. Colocation should not be confused with cloud hosting.

What is Shared Hosting?

With shared hosting, multiple companies or organizations are accommodated on one server. With shared hosting, your business does not own the hardware or software. Instead, the hosting provider owns the infrastructure. With shared hosting, multiple websites are hosted on a single server. Although this option is more cost-effective than other hosting methods, there are some downsides to shared hosting. For example, the lack of control over the equipment and software. Another downside is that your team will have no idea with who you’re sharing resources. This can ultimately affect the uptime, performance, and speed of your website.
Modem Wiring

When Should Businesses Consider Colocation Hosting?

When deciding if your business should consider colocation hosting, there are many benefits that can help be deciding factors. For example, many customers choose to use colocation services due to benefits such as: 

  • Reliability – Servers are kept in safe, temperature-controlled environments with backup power supplies.
  • Security – Data centers are designed to provide high levels of security against cybercriminals, burglaries, fires, natural disasters, and more.
  • Performance – A colocation provider usually guarantees high performance for equipment.
  • Scalability – When you colocate, you have the option to scale up or down very easily.
  • Cost and Space Saving – No matter the size of your organization, colocated hosting allows for businesses to save money while freeing up space in the office.
  • Speed – When using colocation hosting, your business gains access to faster speeds with high levels of performance.
  • Experience – Regardless of your IT team’s experience level, colocation providers often provide additional insights due to their many years of dedicated experience to network hosting, security, and support.
  • Less Maintenance Required – Generally, using colocation hosting means less maintenance work for your team. Data centers are designed to have everything a server needs to run at peak performance. 

What's Best For Your Organization?

When choosing what hosting option is best for your company or organization, it’s best to weigh the pros and cons of each. Both colocation hosting and shared hosting offer distinct benefits. What may be the deciding factor for your business can range from the size of your company, the budget you have for hosting, or the specific concerns your business has regarding hosting. An experienced managed services or IT provider can help guide you to the best option for your needs. 

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