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Datacenter Colocation Definition

A facility where businesses can rent space, computing hardware and servers is referred to as a colocation center or a colo. Generally these collocations provide the building, bandwidth cooling, power and physical security while the client provides storage and servers. Racks, cages, rooms and cabinets is often rented as space in the facility. Normally quite a few of these colos include managed services that support their customers’ business initiatives, as extended offerings. 

Out of the many reasons a business may choose a colocation over a building the main reason is the capital expenditures that are associated with building, updating and maintaining a large computing facility. Earlier they were usually used for disaster recovery by private enterprises; nowadays they are exclusively famous with cloud service providers.

Although colocation maybe an excellent solution for some organizations, there could be downsides to it this approach as well. Some of these downsides could be distance as it can turn into increased travel expenses in cases where equipment requires to be touched manually and sometimes clients find themselves bound by long-term contracts that prevent them from being able to re-negotiate rates when there is a fall in prices. An extremely important thing that organizations must carefully go through their collocations service level agreements in order to not later get charged and be shocked by any hidden charges. 

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