Renting Dedicated Servers verus Co-LocationDedicated/Private Servers Dedicated Servers or Managed Dedicated Servers is a type of Internet Hosting where the client leases an entire Server not shared with anyone. This is more flexible than Shared Hosting, as organizations have full control over the servers, including choice of operatig system, hardware, etc. Dedicated Severs usually are used for extensive Web Sites which serve too many online visitors at once. Mail Servers, Virtual Universities or extensive ECommerce Web Sites are samples of Dedicated Server usages.Dedicated Servers provide huge Web Space and BandWidth. If server is CNFN physically located in administration area of Web Site, it is called Co-Location Server. When a physical Server is devided to multiple Virtual Servers we will have several Virtual Private Servers(VPS). These Servers can provide greater control and performance than a Shared Hosting account. They come with exactly the same features, autonomy and functionality of a Dedicated Server, and are suitable for a wide range of tasks such as application testing/development, Domain and Hosting Resellery, high traffic Web Sites or game serving. Dedicated Hosting Service The user gets his or her own Web server and gains full control over it (root access for Linux/administrator access for Windows); However, the user typically does not own the server. If the server is administered in users location, its called Co-Location Server. Suitable For: • High Traffic WebSites • Database-intense Web Sites • Online Products Seller Sites Virtual Private Server(VPS) Slicing up a server into virtual servers. Each user feels like they are on their own dedicated server, but they re actually sharing a server with many other users. A Virtual Private Server (VPS) offers a more stable, secure, and flexible hosting environment than a Shared Hosting Service .The major difference between server colocation and dedicated server hosting is ownership of the hardware and facilities. With a dedicated server, you are renting the hardware and paying a third party for support and management services to a pre-agreed standard; whereas, with a colocation facility, the hardware and facilities are owned by the users. The actual facilities will, in fact, be owned by a number of different business users and a good analogy is a condominium for servers.Server colocation involves several users sharing the cost of technical support, facilities, Internet connectivity, and other data center infrastructure, and provides economies of scale to business users. Typically, business users tend to be web based e-commerce companies and enterprise class organizations that are looking to free up their own networks and take advantage of the cost savings.Now, Which one is the best, leasing a dedicated server or buying your own server and co-locating it someone’s data center?This can be answered by assessing your company’s technical needs, budget, Internet traffic, and growth expectancy.  It is fair to say that larger, established companies typically rely on colocation over a dedicated server.  Whereas, smaller aspiring businesses, which do not have the ability to administer a server, can opt for web hosting on a shared server and then ultimately transition over to a dedicated server.  Once a company has the ability to administer a server, it usually graduates to utilizing the benefits of a colocation facility, which allows a company the autonomy it often desires.    When you co-locate, you are simply renting space within someone else’s facility to store your own server or servers. It’s like a high tech locker that you are renting all or part of to house your servers. You either ship or deliver your server to your provider. Additional services provided with co-location vary from host to host but it certainly won’t include the actual server. With a dedicated server you are getting all the features of co-location, plus the actual web server itself.While it certainly depends on your particular needs, and there are excellent situations for both the dedicated server option is quickly becoming a better choice in more and more cases. If you already own a web server, or cluster that you prefer to use, then obviously co-location may be your best choice. If you are considering buying new equipment and shipping it off for co-location – please reconsider. The prices and equipment available in dedicated hosting these days are outstanding plus relieve you of the burden of hardware. Most hosts keep identical spare parts on hand for the types of servers used and are quick to react if something fails. Depending on your arrangement with a colocation deal hardware failure could mean paying to have a server shipped back, having it fixed yourself then sending it back to the data center.With the online industry primarily at a halt (or an amazing stand still at best,) e-business economists are struggling to reduce operating costs for their respective companies. For the dot coms thriving on high traffic, there is no doubt efforts have been put towards trying to reduce hosting or bandwidth costs. As the Internet server hosting market has evolved, many companies have focused a great deal of time into determining the cost advantages and disadvantages of collocation over dedicated serving.collocation is not always the most cost efficient choice.