Managed Web Hosting
With managed hosting, you will be using a form of dedicated hosting. That is, you will be using a dedicated server where you will have full administrative control over the server. The host provider will provide all of the essential technical services such as server set up and installation, your choice of software installation, monitoring including security monitoring 24/7, comprehensive customer support 24/7, software upgrades, and more. The host will mange and maintain the servers performance to ensure reliability and high performance. Any problems that occur, the host will identify them and quickly and efficiently make the repair. You will normally pay a monthly fee for managed web hosting. Due to its convenience, reliability, and flexibility, many business webmasters will choose managed web hosting.
Colocation is much like dedicated hosting. You will have your own server that is only used by you. You will not lease the server as you will own the server. That is, you will buy the server which can be quite expensive. With colocation hosting, you can store your server at a facility that has been designed to provide the highest security. Large enterprise will use colocation hosting as an effective server storage solution.
conclusion: The main difference between managed hosting and colocation is the amount of control. Because you own the server with colocation, you have complete control but you will need the IT team that has the ability to run the server and you will also need the budget to purchase the server. With managed hosting you will lease or rent the server making it a cheaper option.