In today’s context of online businesses, the operative word is colocation. This is the setup where web hosting companies chose to colocate their hardware and infrastructure to third-party service providers.
Colocation -- Managed And Unmanaged Services
Most small and medium sized online companies are now into colocation, the outsourcing of data centers in offsite colocation providers. Their major reasons are the security in power and data storage, fast access for their sites, and lower bandwidth costs.
The Basics Of Colocation
Colocation is basically a service supplied by a data center company to IT companies to locate their network, server and storage systems inside the facilities of the data center company. This service usually includes interconnectivity to a variety of telecommunications and other service providers.