My little discussion about colocation services
Most companies that go for server colocation packages are smaller start up businesses that do not currently have the capability to set up and maintain a server. Such companies usually start out with such a service, and later move to their own dedicated server when they are financially able to or possess the technical know how. When a certain company moves up to hosting their own dedicated server, they will have to establish a dedicated IT department to oversee their operations. Server colocation can still be particularly beneficial at this point, since it allows them the full benefits of a dedicated Internet connection at much less cost and reduced technical requirements. Dedicated servers actually come in two types: managed and non managed.