Colocation services (also known as "colo") offer a secure environment for hardware and access to network connectivity that enables reaching customers worldwide. Typically, a colocation service provides the building, cooling, power, bandwidth and physical security while the customer provides servers. Capacities in the facility are leased by the rack, cabinet, cage or room.
Colocation facilities provide space, power, cooling, and physical security for the server, storage, and networking equipment of other firms and also connect them to a variety of telecommunications and network service providers with a minimum of cost and complexity.
With colocation services, businesses purchase their own equipment and pay a colocation provider for the space and resources in the data centre. The individual is then responsible for setting up and configuring their server and maintaining it going forward.
Many businesses choose to move away from hosting their IT infrastructure in-house and want the flexibility of still being able to manage their own equipment. Space is rented based on their requirements but can be easily scaled up as the business grows.