What is Collocated Hosting? Know Advantages and Disadvantages

There are different types of web hosting and collocated hosting is one such service. People often get confused with collocated hosting with dedicated server hosting. But in reality, there is a significant difference between these two types of hosting plans. So, what is collocated hosting? Collocated hosting is a web hosting service where you are the owner of the web server. You just rent the space in somebody’s data center or rack to place your server and utilize their bandwidth and IP address.

Unlike dedicated server hosting service where the server ownership lies with the web hosting company. You rent the whole server along with their bandwidth and other necessary services. Here, you are dependent on web hosting company regarding server hardware and maintenance.


Let’s see collocated hosting in detail with its advantages and disadvantages.

What is collocated hosting?

You need space on the internet for running any website or online application. Usually, people go with different kind of hosting plans such as shared hosting, cloud hosting, dedicated hosting, collocated hosting, etc.

In short, the necessary prerequisites are a web server, data bandwidth, essential software, security, and IP address. Out of which, web server and bandwidth could be the most critical thing for someone to manage.

You need a climate controlled environment to place your server securely. Also, there should be a minimum to no power outage to keep your website, or online application live. Data bandwidth and security are other vital factors which will decide uptime of your site.

So, if you are a small business which is looking to match your wits with some of the larger companies out there then collocated hosting becomes an ideal option. A hosting company will provide you space in their data center with bandwidth and IP address. But beyond this point, you should have experienced IT professionals to manage hardware and software of this server.

collocated hosting

You have full access to your server and ability to upgrade or install any hardware or software without thinking of data bandwidth or power outage or any security issues.

Advantages of collocated hosting

Till now you must have understood the primary benefit of collocated hosting. Let’s see more in detail.

  • Collocated hosting could cost you anything between $150 to $250 per month based on requirements such amount of rack space, power requirements, data bandwidth, etc. At first glance, this cost might look on a higher side, but this is far cheaper than whatever you come up with if you calculated for everything to run such kind of set up on your own.
  • You are not at the mercy of hosting provider if you wish to upgrade your server hardware. You have to plan things and get physical access to your web server.
  • Online and physical security is the topmost concern of current times. With collocated hosting, you are assured of higher security measures in place. Not to forget, all beg hosting companies are also running their other plans from the same data center.
  • When people choose to go for private hosting at their location, they might deal with the power outage. UPS and other such measures might provide you backup for at max a day but what if you require more than a couple of days. On the other side, big hosting companies are always prepared for worst case scenarios.

Disadvantages of collocated hosting

Collocated hosting has specific problems as well. Let’s see some of them.

  • Collocated hosting is on a higher cost. Sometimes you may not require collocated hosting and other hosting plans, such as shared, VPS, dedicated, etc., might suffice your needs. Measure your requirements in detail and make a wise decision.
  • Collocated hosting is becoming less popular day by day. Why? It’s too much of work. If you do not have good IT man force, then managing server hardware and software could be a challenging task.
  • On-demand hardware upgrade or faulty component replacement could be a challenging task for you as inventory management is not so easy. On the other hand, web hosting providers always have a contingency plan and also, they maintain a good inventory of spares.
  • Physical access to the server could be tedious. Sometimes, if the data center is located far from your place, then you have to even plan for your transportation. So, it is always vital to look for data center close to your area of work.

Dedicated server hosting vs. collocated hosting

Dedicated server hosting provides a standalone server at your disposal. The ownership of this server lies with the web hosting company. However, you can manage what kind of software runs on this machine but the overall responsibility to run the server lies with the hosting company.

If you wish to upgrade the hardware, then you have to place a request with the hosting company.

On the other hand, in the collocated hosting, you won the physical server. You just rent the space and bandwidth to keep your server up for hosting your website.

Over to you on collocated hosting

If you are a small business owner or someone who is running a blog, then collocated hosting would not be a good choice. Having said this, it all depends on your need. Sometimes, even the best server provided by hosting company might not fulfill your requirements.

Then this plan might justify your requirements. But do remember, collocated hosting is costly and requires a good deal of work and knowledge of server management.


If you are looking for a standalone server to handle a significant amount of traffic then dedicated, or cloud hosting could be a better choice. All in all, it is your call.


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