Information on Server Colocation Services
Server Colocation allows the Colocation services provider to install the main unit in their rack and the result is shared bandwidth, something that results to reduced prices. Alternatively, you can decide to rent the main unit, such that you own nothing else in the entire process other than your data. An IP address given allows you to connect to the main unit from afar and therefore effectively allows your customers to connect to your website. Should you own the type of business that is going to have high-density files being downloaded from your site all the time, then you are going to require more bandwidth.
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Note that the amount of cash that you are charged by the provider is usually for the space occupied by your main unit, and not the bandwidth. In some cases, the amount you pay is usually more than if you had chosen to host the main unit yourself. You might be tempted to feel sorry for the provider but in the real sense, they pocket a lot of money from people like you. Their arrangement based on volume discount allows them to host quite a number of main units for other clients.
One of the other main advantages of this type of arrangement is that the provider is often prepared and equipped to deal with any technical problems that might occur. For instance, knowing that power outages are the worst enemies of this set up, a provider often has loads of back up power to quell such a situation. The security of your main unit is also guaranteed under such an arrangement, than it would have been had you chosen to have it in your home or office.