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  1. #1
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    Colocation or rental?

    Hi,

    What do you think is more cost effective option, a collocation or dedicated server rental?

    Please provide pros and cons for each of the options.

  2. #2
    Registered User
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    I think both is good.

  3. #3
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    Mar 2017
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    Colocation if you have the funds.

    Renting if you're a start-up.

    Colocation will only be cheap if you plan to colocate large amount to receive a special pricing.

  4. #4
    Junior Member
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    Mar 2017
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    Hi, In my opinion and as raid1 said Renting is good if you're a start-up or any small business firm who don't need much sizes and also in renting you can add as much as space you want according to your need. Colocation will be cost effective only when you require large amount of units.

  5. #5
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    Colocation doesn’t just mean greater speed and bandwidth; it also means more freedom. You define what applications, databases and other interactive elements need to be used on your website or internet application on your own server or other infrastructure.
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  6. #6
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    Apr 2017
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    They both are okay i guess.

  7. #7
    Member
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    Feb 2017
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    St. Louis, MO
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    Colocation is best for larger, mission critical companies with specific demands for security, customization of servers/architecture, and long term cost savings especially if can afford upfront hardware costs or for existing legacy on-premise data-centers they are looking to get more life out of with added reliability. Reliability is main benefit with Data Centers like ours-Cybercon will most likely be Tier 3(or Tier 2+) having multiple 10Gb or GigE internet backbone connections to Tier 1 backbones for 100% network uptime, N+1(+2) redundant power feeds, UPS systems, ATS, and diesel generators so no power outages, and military grade or high level data center security levels. All of these features are expensive and difficult to come by with growing companies. Also, most DCs will have 24/7 NOC monitoring and tech support with hardware replacement if servers fail which saves company more on labor and cost of downtime. Typical Racks/Cabinets usually $300-500 plus power ranging from 1 20 AMP-around $250 - 2 30 AMP as much as $1500 monthly, and that is even based of St. Louis low power costs. The bottom line is it depends on the nature of business, scale, and situation mainly aimed toward medium to large businesses.

    However, smaller companies and individuals can save money and add reliability doing single server colocation which includes power vs. purchasing an entire data center rack/cabinet. Purchasing data center rack space this way usually starts as little as $100 for a single rack server, with added costs ($100-500) for additional servers, firewalls, switches, load balancers, etc. This is most cost effective if you already have Good hardware, or found a good deal on getting quality hardware and have means to set up. Location plays a major factor for this also, as will need to stay local to set up, maintain, add or improve architecture unless you want high travel costs or pay for special support to perform tasks remotely for you. Tech support labor costs generally $80-$120/hr.

    Dedicated server rental is the most cost effective if you need your own data center equipment(vs Cloud/VPS), especially if you don't already have hardware. Benefits include getting premium enterprise level hardware that has guarantee and therefore replaced Free if Server, RAM, CPUs, Disks fail vs. paying $100s-$1000s for replacing hardware or tens of $1000s for a brand new server if your own fails with colo. Not only that, you generally get more tech support included like free installs, Hypervisor/OS license(unless Windows Dedicated Server), restarts, reboots, remote hands, and other support. Along with this you still maintain full access and control to create VMs with VMWare or set up preferred database, OS, applications, etc. It also is much more cost effective to scale a smaller growing business by adding CPU, RAM, disk space(local or SAN), or even more servers and clustering as you grow with less cost, labor, and downtime than Colo. Standard dedicated web server hosting is generally starting around $100 also ranging up to $800 before you get into private cloud solutions which entails multiple dedicated clustered with load balancer, firewall, switch, network cards, dedicated ports, etc. Forgive the long post but didn't think there were sufficient details supplied as of yet.
    Last edited by JesseG-Host; 08-18-2017 at 03:50 PM.
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  8. #8
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    The reason Dedicated server is better is you get physical hardware with dedicated server, while with VPS the resources are virtually allocated from on large dedicated server, which can result in performance issue when the whole node is facing problem your VPS is also hampered due to some other VPS , which is not the case with dedicated server as the whole server resources are allocated for your websites.

  9. #9
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    Jul 2017
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    6

    Collocation or Rental Server?

    Hello everyone,
    For a small and startup companies with a low investment a Rental server is best and Collocation server is best with a large amount of funds and investments. On my opinion dedicated rental server is for all kind of startups and new companies.
    A lot of Indian companies are providing all kinds of Rental servers (Dell, HP ext.) with a low prices, why you are wasting money with large investments. Save a large amount of money with Rental servers.

  10. #10
    Registered User 24x7servermanag's Avatar
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    Co-location hosting is basically hiring a specific space, power, network and bandwidth from your Datacenter to offer your own server hosting services. Basically you put your own hardware specific server under the rack and allocating the required network and bandwidth for that server.

    You can use that when you don't trust the hardware of any datacenter since not always you will get first hand hardware and you want to implement some reliable hardware looking at future growth.

    If there is no need of above approach then go with the dedicate server.
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  11. #11
    Junior Member
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    Aug 2018
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    if you want have some few servers then rent them is better

  12. #12
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    Oct 2018
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    Birmingham, AL 35203
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    72
    Hello in my view and as raid1 stated Renting is good you need based on your need and if you are a startup or some small business company who do not require sizes. Once you need large number of units colocation is going to probably be cost effective.

  13. #13
    Registered User alanclarc143's Avatar
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    Dallas
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    Nice sharing. Great post according to my point of view. But I think colocation is the best option for most users.

  14. #14

  15. #15
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    Jun 2019
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    New York, Seattle
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    At the end of the day it really comes down to your plans and end goals.

    For a single server often times colocation isn't always the best option, however this really depends.

    Pro's of a dedicated server.
    1. Low upfront costs, sometimes no contracts, able to upgrade.
    2. Not having to worry about spare equipment, if something breaks the data center or hosting company needs to repair it.

    Cons of a dedicated server.
    1. You don't own the equipment it's like leasing a car you pay all this money into it and don't own anything. This is fine for some people however others like to own the equipment after using it even more if you use it for multiple years.
    2. Depending on the equipment the pricing can be quite high monthly if you get a custom system, however if it's a costly server you might not have the funds to buy one itself and use colocation.

    Pro's of using colocation.
    1. You own the hardware it's yours, do what you want with it. We normally suggest doing this for large custom servers as it can be a one time payment and then a lower monthly cost for colocation.
    2. More control over everything, if you need to add more ram, drives you can do this at a later date normally cheaper than with a dedicated server.

    Cons of colocation.
    1. High upfront costs, unless you buy older used equipment the costs will be a bit higher to buy the equipment.
    2.Spare equipment if something breaks, if the server fails it's on you for supplying a spare part or system which in a single server sometimes this isn't worth it.


    A great option is finding a colocation company who can offer you a hybrid colocation This would be a provider who does colocation plus dedicated servers, so if you need to rent a system ore if there is a big failure in hardware they can possibly move the hard drives for you into another system until you can get yours replaced.

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