Dedicated Server vs. Colocation

If you are planning to take your brick-and-mortar store to the digital world, you should consider hiring an internet solution provider for your web hosting needs. With web hosting, you can set up an e-commerce site, which can also include data storage, data backup, email services, and domain registration. For web hosting services to go smoothly, a powerful server that operates on high-speed connection is used.

The servers for web hosting services fall into two categories: shared and dedicated. As the name suggests, a shared server is something you share with several other companies, which means there are set limits on how much data you can store. Meanwhile, a dedicated server is one you have all to yourself.

However, if you are not comfortable with having an internet solution provider manage your dedicated server, you can consider colocation services instead. With this, you provide the hardware and request for an IT professional to maintain and manage all the activities on the server. The difference is: this server will be set up in the solution provider’s headquarters, not yours.


You own the rights and software licenses to that particular server. Basically, you’re just renting space in the IT company’s data center. With colocation, a technical representative of that company will see to it that the server is maintained and monitored properly.

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Why are Some Dedicated Servers So Expensive?

If a business has to rely on a network of computers to run its day-to-day operations, it follows that it also needs to run a dedicated server: a single computer customized to manage all of the network’s subroutines. This server can be located either within the business premises or in a secure facility elsewhere. Regardless of where they’re installed, though, dedicated servers can be very expensive to manage.

Much of the cost is attributed to the hardware. Dedicated servers operate differently than domestic servers in that they facilitate communication between computers over a secure connection at all times. Achieving this feat is no simple manner because managing the communication of multiple computers even over a span of a few hours can prove very stressful, which is why the server’s hardware has to be built according to tougher standards. Special ports and other features may also be installed for certain purposes—such as to facilitate data storage, for example—which in turn drives up costs.

Fortunately, dedicated servers are less costly to run if they’re properly assembled. If, for example, the server experiences a sudden power interruption, its operating system would have to be easy enough to reboot and reconfigure so that any damage incurred due to data loss won’t be very costly in the end.