Colocation is a type of hosting when the customer’s server equipment is placed directly in the Provider’s Data Center. Moreover, it does not matter whether the servers belong to the customer, or whether it leased from the provider.

Why use colocation?

The literal translation of the word colocation means "co-placement." It means the joint placement of different customer equipment in a single Data Processing Center (DPC). This is advisable when the capacities of a virtual server (or several virtual servers) can no longer provide the necessary performance, and the further expansion of "virtual capacities" is not economically viable.

Who can benefit colocation?

Hosting with a physical server is appropriate for sites and online stores with exceptionally high traffic, portal solutions and commercial SaaS applications, as well as for hosting heavy business applications with Internet access. Colocation is also used to deploy its own cloud-based business infrastructures. Of course with a rise of cryptocurrency mining, it became very popular to place equipment in a data centre and eliminate the need for building your own farm at home of rent a place for it.

Massively using virtual servers and virtual desktops based on their own servers and server farms in the data center is more economically viable than renting. If, for example, to host a server farm, you only need two or three racks, then the installation costs for such a small server room will cost almost as much as the construction of your own Data Center.

Modern Internet connections eliminate the speed differences between accessing the server inside the company and the external data center, and the level of security, startup costs and variable costs will be lower. ZERTO INC cloud mining and colocation service.