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Managed Hosting or Colocation- Which Path Should You Choose?

By June 10, 2024No Comments

Choosing between managed hosting and colocation is critical for businesses looking to optimize their IT infrastructure. Each option offers unique advantages, and understanding the differences is essential for making an informed choice. Managed hosting provides a hands-off approach with many services included, while colocation offers greater control and flexibility over your servers. Let’s learn about these two options in detail, ending with insights on managed colocation services.

Understanding Managed Hosting

Managed hosting involves leasing servers from a provider who takes care of maintenance and management. This solution includes storage space, servers and network hardware. After opting for managed hosting, the service provider supplies the operating system and handles administration and support.

Key Features of Managed Hosting

Managed hosting involves renting a server from a provider who handles all maintenance and management tasks. Many businesses prefer managed hosting over other options because it eliminates the need for in-house server management. For a fee, the provider takes care of everything, allowing companies to focus on their core activities.

Here are some important features of managed hosting:

Comprehensive Server Management

Managed hosting services handle all aspects of server management, which is perfect for businesses with limited technical expertise. This allows companies to focus on their core activities without worrying about managing their IT infrastructure.

Cost-Effective Initial Investment

Managed hosting eliminates the need for purchasing servers and related equipment. Instead, businesses can lease the necessary infrastructure and pay in manageable monthly installments. This approach results in lower start-up costs, making managed hosting an economical choice.

Streamlining Your IT Infrastructure

In managed hosting, upgrades are a pivotal service offered by providers. Rather than managing upgrades in-house, businesses can rely on their hosting service to handle this aspect. This service proves advantageous for many enterprises, especially those aiming to avoid direct capital investment in upgrades. However, one potential drawback is the occasional need to wait for upgrades to be completed.

Exploring Colocation

Colocation, or colo, is a service that involves renting space for servers and computing hardware from a third-party data center. Managed colocation services offer a similar level of comprehensive management and support for your IT needs. This service includes access to the physical building, networking infrastructure, security measures, redundant power systems, and redundant cooling components.

Core Features of Managed Colocation Service

Complete Server Control

One of the primary advantages of colocation is the autonomy it offers. Unlike hosting, which a provider manages, colocation allows businesses to own and oversee their servers. This control is a significant factor for organizations seeking to tailor their infrastructure to meet specific performance requirements.

Enhanced Bandwidth Availability

Colocation facilities typically boast high bandwidth capabilities. This ensures that data centers hosting your servers can efficiently handle large volumes of traffic. Consequently, customers and employees can access websites and information quickly and seamlessly, enhancing overall user experience. Managed colocation services can enhance these benefits by offering additional managed support.

Managed Services in Colocation Centers

When opting for colocation, businesses are often tasked with procuring, setting up, and managing their equipment daily. Such services entail receiving on-site support for daily server management, including setup and maintenance. This approach ensures that your infrastructure is professionally managed while you retain ownership of your hardware.

Remote Hands Assistance

While colocation grants full control over your servers, it also provides remote hand support for minor updates and emergency solutions. Delegating such tasks allows organizations to conserve resources and technical personnel for more critical internal operations. Managed colocation servicescan also offer cost-effective solutions by providing similar leasing options combined with comprehensive management support.

Similarities Between Managed Hosting and Colocation

 Enhanced Security and Disaster Protection

Opting for either managed hosting or colocation means your servers are situated off-site, away from your primary business location. This setup significantly enhances the security of your data, protecting it against potential threats like data theft and natural disasters. Server hosting companies typically implement stringent security measures to safeguard your servers and data from various eventualities.

Ownership and Control

Both managed hosting and colocation provide you with your dedicated server. Whether you own or rent the server, you have exclusive use of it.  This arrangement ensures that your server’s resources are dedicated solely to your operations, enhancing performance and security.

Expanding Your Server Capacity

Both offer scalability options to meet your growing needs. With managed hosting, you can easily rent additional server space as your requirements increase. On the other hand, colocation allows you to purchase and install more servers at the data center, providing greater control over your expanding infrastructure.

Ensuring Continuous Accessibility

Downtime can have severe repercussions for businesses, making uptime crucial. Data centers typically employ backup systems to mitigate the risks associated with power outages and other potential issues. This ensures that your data remains accessible and your operations continue uninterrupted, regardless of external challenges.

Optimal Scenarios for Choosing Colocation Over Managed Hosting


When deciding between managed hosting and colocation for your organization, you must consider various factors, such as your specific requirements and financial resources. In the current business environment, many companies are opting for a combination of both solutions to accommodate their diverse workloads.

Colocation is often the preferred option for expanding businesses that can invest in their servers. Many of these businesses later opt to integrate managed hosting into their operations. Colocation provides an additional layer of security and stability, enabling organizations to commit to long-term contracts without connectivity issues.

As IT infrastructure migrates off-site, colocation allows you to maintain control over your servers while benefiting from on-site expertise provided by skilled professionals.

Maximize Your IT Infrastructure

Upgrade your business’s IT infrastructure with RACK59 Data Center’s premier managed colocation services. Benefit from our state-of-the-art facilities and expert support, ensuring your servers are secure and optimized for performance. Contact us today to learn more about how our managed colocation services can elevate your business’s IT operations.

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