How should I know that I need colocation hosting for my server?

One way of knowing that you need colocation is when you start to doubt the efficiency of your in-house data center and when you know that the cost of upgrading and retrofitting it far exceeds your financial capacity as well as far beyond your projected return of investment. This is the time when you know that you are in need of a more robust server and a more reliable and stable facility to house your server and you know that you can never afford the services of a dedicated server. Aside from these concerns, you know that you need colocation when you want to have full control over the hardware and software requirements of server plus the need to have a hand in the overall management of your website. Lastly, but as important as the rest, you know that you need colocation when you want the best possible facility for your software, something that big IT departments have, but at a much lower cost.

What are the drawbacks of colocation?

Just like the other packages and solutions offered by web hosting providers, colocation has its own share of drawbacks and disadvantages. Among them are:

  • You need to find a colocation center that is strategically close to your house or to your office. Colocation is a hands-on operation and it is vital that the colo center be located near your office to minimize the cost of travel as well as to cut the time of travel.
  • On an economics point of view, colocation is more expensive than managed hosting. Although the fees you need to pay may be lesser, the higher cost comes from the need to buy, upgrade or lease server hardware.
  • You may need to purchase or upgrade your own server, in case you don’t own one, which translates into additional overhead cost for your website. However, there is an option to rent a server, which means the colocation provider builds the server for you. In any case, you need to shell out an
  • There may be a need for you to periodically upgrade your hardware to prevent it from getting outdated and outmoded.
  • You have the sole responsibility for the web server administration, which means that you have to do it yourself unless you pay someone to do the job for you.
  • The operation and upkeep your website is also your sole responsibility which literally means that you must have basic technical know-how in server operation and basic knowledge of the server that is running in your system.
  • The task of maintaining and keeping your server up and running is also your sole responsibility which means that nobody else fixes and troubleshoots the server problems for your and that you have to do the task yourself, not unless you hire somebody to do the task for you.
  • You may need to travel from your office to your colocation center which could mean that a major amount of your time is spent travelling between the two instead of spending it in the office to do vital office work.
  • The initial and overhead capital outlay could be steep.
  • Time restrictions could be imposed as to the access to the colocation center, which could be a part of the security protocol, which means that should problems occur within the restricted time, you may need to wait until the restriction is lifted.
  • Bandwidth is often shared by a number of colocation users; this may often result to a sluggish connection.

What is colocation bandwidth billing?

Colocation bandwidth billing is the billing and pricing of colocation bandwidth charges. However, this actually refers to the amount of data transferred to and from the server within a given billing period. There are two ways of calculating bandwidth billing and these are:

  • 95th Percentile – The most common yet most difficult to explain billing method. It uses this formula:

(95th percentile rate) x (billing cycle length) = Bandwidth usage

  • Straight data transfer – The total amount of inbound and outbound data is summed up and billed to the customer.

When can colocation be a good hosting choice?

Colocation can be a good hosting choice if you value a hands-on control and operation of your website server without counting the possible trouble of having to travel from your office to the colocation center as well as when you want the best facility to support your website at the lowest possible expense.