Colocation is the type of service by provider when it puts the equipment of the client on his territory, usually in a data-center, gives him needed power supply, service and connects him to Internet channels with good bandwidth. Sometimes such equipment may be rented by the client and not owned. In this case it is known as dedicated server rental.
Such service as colocation allows to save on connection channel creation form provider to client. Usually the servers intended for web-sites and other network services with high volumes of traffic are positioned here. Also such devices as VPN-concentrators and IP-telephony gateways - the devices that need reliable access from all over the world, may be located here.
Usually such service includes:
- the backup power system;
- needed climate regime;
- physical security
- server management
- remote access to equipment, such as KVM
Some people think of colocation as of standalone service, and others think of it as of the type of hosting.