Pricing: With colocation, the initial cost is higher than for managed hosting due to the purchasing of a server. However, managed services tends to be more expensive over time given the relatively higher leasing cost including physical and administrative maintenance.
Ownership: With colocation hosting you own your server whereas with managed hosting the server is owned by your hosting provider. You are leasing the space to house your server with colocation and with managed hosting you are leasing the actual server.
Control: Because you actually own your server with colocation hosting you have absolute total control over it. With managed hosting, on the other hand, you have much less control. This is because you are only leasing space on a computer and you don’t actually own it. Many companies do prefer this option though because they don’t want to have to deal with managing their server themselves.
Hardware Upgrades: If you think that your server is running too slow and perhaps needs more memory, then you are free to upgrade it yourself with colocation hosting. If you use managed hosting, then your hosting provider will need to upgrade your machine.
Software Choices: With colocation hosting, you can choose the types of software that you want to install. You can simply purchase the application and install it yourself. With managed hosting, the hosting provider will need to install the software or tools that you need or want to use.
Expertise: If you choose colocation hosting, then you or your staff will need to have the expertise required to do your own hardware and software upgrades and other types of set-up and maintenance. If you choose managed services, then you don’t have to have that level of technical expertise on your staff as you will be paying your service provider to do these maintenance tasks for you.
Colocation is the preferred choice for companies that must meet specific compliance or data protection requirements. The same goes for organisations that need to broaden their current data center without actually paying for construction. Do you want to read more? Read our guide on data center colocation