Co-location Data Center – Advantages and Disadvantages

Co-Location might be a new word for some businesses but it has already put a big mark on the overall IT industry and changed the way how IT departments of thousands of organizations perform their operations. Technology is growing day by day, and by the way it is growing, we can assume that only sky is the limit in this modern age as far as technology is concerned.

Companies have found themselves in a position where they need to be online 24/7, 365 days a year to stay in the game, otherwise they might go out of business. Companies have to keep improving their technology to keep up with their competitors while still keeping the costs under control.

In Co-Location Data centre multiple companies use the same infrastructure while having the ownership of the own servers. There servers are usually off-site and companies don’t have to worry about the datacenter maintenance, security, cooling and other related issues.  Even though there are various advantages that these Co-location Data Centres have to offer for small and medium businesses there are some disadvantages as well that you should have in mind as well, to ensure that you don’t get any surprises later on.

As with any other technology Co-Location Data centre comes with its own Advantages and Disadvantages, some of them are given below:

Advantages of Co-Location Data centre:

–          Bandwidth is much bigger due to shared connections.

–          Less expensive when compared to the dedicated servers.

–          Security is provided by the Co-Location Data centrecompany.

–          Up-gradation is easy to perform.

–          Room temperature and other elements are taken care of.

–          If your business location moves, your data centre can remain in the same place.

–          Flexible and customizable.

–          Less Headache, you can concentrate on your main business.

Disadvantages of Co-Location Data centre:

–          Initial/startup cost might be at a higher side.

–          Equipment is purchased by you.

–          When compared to a normal hosting, it is expensive.

–          You can’t have a data centre close to your location.

–          For up-gradation and maintenance you have to go to the data centre location.

–          Time restriction may apply at the data centre premises.


Co-Location data centre is a cost-effective and efficient solution if you compare it with dedicated servers, but if you compare it with a normal shared web hosting it would be more costly, which may be a concern for many small businesses that are tight on budget and can’t bear the expense of dedicated servers. Therefore companies that are looking for reliability and 100% uptime, they should use Co-Location data centres instead of dedicated servers to save some serious money, as co-Location data centre reduces the cost of maintenance which you have to bear if you form an on-site data centre along with other maintenance headache, including cooling maintenance, environment cleaning, security, power backup availability, etc. A solution that is perfect for one business might not be perfect for other business; hence it is critical to study your requirements first before making any decision.