Collocation hosting (also known as co-location hosting) is an arrangement by which dedicated physical space, server resources and bandwidth are allocated to different customers from a common data center (often called collocation center). The additional advantages include security, network connectivity and protection against incidents like fire breakouts. However, the industry experts count collocation hosting useful only for big business firms, not the small business owners. Here are the valid arguments that they give in support:
High Startup Cost
Even a low-end server may cost anything between $4,000 and $5,000. Add to it the cost of leasing physical space at collocation center and that of hardware and equipment. For small businesses, it is practically infeasible to bear these costs when managed web hosting solutions are available at much cheaper setup costs and proper technical support.
Uncertain Monthly Costs
With collocation hosting, the monthly maintenance costs may fluctuate, depending on things like bandwidth utilization, server upgrades and setup configurations. Considering the fact that financial budgeting is very important for a small business firm, this type of uncertain costs may disturb the financial stability and its proper functioning as well.
Server Maintenance Requirement
Co-location hosting requires the users to maintain their respective servers themselves. While it is not a difficult task for big companies with additional IT experts, small businesses may find it burdensome.
Time and Distance Limitations
Businesses may require their staff members to travel to the data centers to work on servers. Installing upgrades and configuring the equipment may also require several visits right to the data centers. Small businesses may find it extensive wastage of time and fuel. Moreover, the data center located miles away from the premises may add to the consumptions of time and money. Practically, it may not be always possible either.
Business Relocation Issues
While big business houses don’t relocate their offices frequently, small business owners may have to do it depending on a certain situation. Relocating to a new location may take away the benefits of using collocation hosting. Moreover, relocation to some new city may require the business owners to shift his resources and servers to a new data center, thereby adding to the costs. This is definitely not feasible for small business owners.
Simple web hosting solutions, like shared hosting and managed hosting, are apt for small businesses. Big businesses, on the other hand, can certainly harness huge benefits out of the collocation arrangement and thereby opt for the collocation hosting services.