Colocation vs. Dedicated Hosting: What's the Difference?

The core distinction: in colocation, you own the hardware. In dedicated hosting, the provider owns the hardware and you rent it by the month.

Key Differences

  • Hardware ownership: Colo = you own servers. Dedicated = provider owns servers.
  • Cost at scale: Colo is cheaper at 10+ servers. Dedicated is lower upfront with no capital purchase.
  • Network options: Colo lets you cross-connect to any carrier. Dedicated is limited to provider network.
  • Management: Colo is unmanaged. Dedicated often includes managed services.

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