The advantages of colocating include all the advantages of dedicated hosting – you have the resources of the entire server and bandwidth to do with as you please. The additional benefit over dedicated hosting is the lower cost. Because you own the server, your monthly fees don’t include charges for hardware maintenance and upkeep. On the other hand, your initial outlay will be larger because you have to buy the server. If the server is good quality and remains in service for a reasonable length of time, however, your overall costs will be lower with colocation.

The cost of colocation depends on the amount of space your server occupies. Data centers house servers in racks that in turn are housed in cabinets. Cabinets are usually 40 rack units in height, with each rack unit equal to 1.75′. The cases of server computers are measured in rack heights – 1U = 1.75′. Typical sizes for servers are 1U, 2U and 4U, so the physical size of your server will determine how much the colocation host will charge per month. Bandwidth is another factor affecting price.

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