collocation
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collocation


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DEFINITION - In general, colocation is moving or placing things together, sometimes implying a proper order. In technology, colocation is the renting of physical space on a service provider's premises.

Data center colocation allows a small or mid-sized business to save money by storing and running parts of its IT infrastructure off-site instead of building and maintaining a large dedicated data center in-house. For instance, a start-up business might colocate its servers. In such a scenario, the servers are owned by the business but are colocated to save money in overhead costs incurred by things like cooling, physical security or insurance. Some colocation providers also provide technical support for additional fees. (See managed service provider)

Colocation can be contrasted with cloud computing, a leasing model that allows a business to rent IT infrastructure on demand over the Internet. In a cloud computing scenario, everything is rented; the only thing the business owns is its data.

Colocation can also be spelled "colocation" or "co-location."

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CONTRIBUTORS: Don Brancato and David S. Jones
LAST UPDATED: 23 Feb 2010

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