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Post #1 (permalink)
04-15-2009, 03:49 PM
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HD Wizard
Join Date: Mar 2009
Company: Hands-On Web Hosting
Location: Saint Louis
Posts: 3,778
Status:
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Looking for input to refine/add to this list.
Thanks
What factors or guidelines lead businesses to select dedicated versus colocated?
Starting with:
In-house technical expertise
Proximity of data center
Are managed services available
Can the data center manage Microsoft Exchange Server (if you need that)
Are monitoring services available
What about backups and disaster recovery -
Cost of power - is 120 and 208v and 20 and 30A available?
Type of bandwidth offered (BGP/Cogent)? What type of failover is available?
Flexibility to upgrade and scalability factors
Entry cost
SLA (Service Level Agreement)
Terms of Service
Current reviews of each
Capital Asset Expense
Of course there are pros and cons to each plan, and neither may be the perfect solution for your requirements. Most hosts will work to customize a solution that matches your requirements.
Colocation Pros:
If you’re in close geographical proximity to the data center, you can work on your own equipment (upgrades, etc.) avoiding the cost of outsourced parts and labor.
As you grow, savings from colocation grow as well
It’s still your equipment, so it’s easier to migrate to another provider should problems arise.
As a rule, it’s generally less expensive when compared to unmanaged dedicated
Your fixed assets show on your balance sheet, indicating higher net worth (important to banks and potential customers).
If you’re using accrual accounting, you’ll be able to show profitability on your income statement by spreading expenses over three to five years (depreciation).
Dedicated Pros:
For smaller customers, dedicated makes more business sense
A broad range of managed services are available
The server belongs to the host and it’s their responsibility to maintain and keep it running
Their techs are familiar with the hardware more so than they would be with your colocated equipment
You benefit from data center amenities that may not be included in colocation packages (firewalls, load balancing)
Entry costs are lower and scalability is enhanced
O/S maintenance and upgrades may be included as optional managed services
Allows you to outsource IT expertise so you can do what you do best - drive your business
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Post #2 (permalink)
04-17-2009, 09:30 AM
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HD Newbie
Join Date: Apr 2009
Company: SevenL Networks Inc.
Posts: 10
Status:
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Sorry I don't have more to add to your list but we get requests for:
- Meet Me Rooms
- Other Teleco for things like VoIP, remote dialup server management etc
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Post #3 (permalink)
04-17-2009, 09:03 PM
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Cyber Specialist
Join Date: Dec 2008
Company: Cyberworld Hosting
Location: Colorado
Posts: 445
Status:
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Also Colocation can save you money and you own the hardware. It might cost more at the beginning but you will own your hardware and the cost per month is usually lower.
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Post #4 (permalink)
04-17-2009, 10:04 PM
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HD Guru
Join Date: Mar 2009
Location: Salt Lake City, UT
Posts: 663
Status:
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Long term, larger scale, colocating is always more cost effective, but many negate to note hardware replacement costs/downtime. Still a much better solution of a larger scale 
__________________
█ | | Fiber Elephant | | Virtuozzo & Reseller Hosting
█ | Never oversold, always managed & on the SoftLayer network!
█ | Call us toll free 24/7! | 1-888-92-FIBER
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Post #5 (permalink)
04-20-2009, 04:42 AM
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HD Newbie
Join Date: Apr 2009
Posts: 6
Status:
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Co-location would definately save the cost. Initially the cost would be more as you need to purchase the hardware but later on will reduce the per month costing
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Post #6 (permalink)
04-25-2009, 06:09 PM
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HD Newbie
Join Date: Mar 2009
Company: HostKitty Internet Services
Location: Las Vegas, Nevada
Posts: 6
Status:
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One of the cons of server co-location in a facility that offers dedicated servers is that you won't qualify for their software licensing. You can usually save a bundle on software by leasing servers vs co-locating your own.
Although if software licenses aren't important then this isn't a con for you 
__________________
James Paul Woods
Operations Manager
HostKitty Internet Services
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Post #7 (permalink)
04-26-2009, 07:24 AM
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HD Guru
Join Date: Mar 2009
Location: Salt Lake City, UT
Posts: 663
Status:
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Quote:
Originally Posted by woods01
One of the cons of server co-location in a facility that offers dedicated servers is that you won't qualify for their software licensing. You can usually save a bundle on software by leasing servers vs co-locating your own.
Although if software licenses aren't important then this isn't a con for you 
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IMO when you've got enough servers where colo makes financial sense there's much you can do to get your own licensing deals directly.
__________________
█ | | Fiber Elephant | | Virtuozzo & Reseller Hosting
█ | Never oversold, always managed & on the SoftLayer network!
█ | Call us toll free 24/7! | 1-888-92-FIBER
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Post #8 (permalink)
04-26-2009, 09:25 PM
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HD Community Advisor
Join Date: Mar 2005
Company: Hands-on Web Hosting
Location: Omaha, NE
Posts: 2,008
Status:
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Oddly we went from leasing, to co-location, and BACK to leasing
By leasing (while MUCH more expensive) it allowed our company to focus on continued growth and also employ staff from around the country. When we were co-locating, we had to focus many of our resources locally so that if something happened and hardware needed to be replaced, we had staff locally to take care of the incident. NEVER fun when you're 100 miles off the coast fishing in Mexico and you find out a hard drive crashed  Co-location can mean a lot of missed vacations when you're a small operation!
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Post #9 (permalink)
04-27-2009, 06:28 AM
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HD Addict
Join Date: Apr 2009
Company: Aspnix
Posts: 216
Status:
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Colocation is the same as dedicated server. Just with some Datacenter nightmares time by time
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Post #10 (permalink)
04-27-2009, 08:17 AM
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HD Wizard
Join Date: Mar 2009
Company: Hands-On Web Hosting
Location: Saint Louis
Posts: 3,778
Status:
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Quote:
Originally Posted by rumsfo
Colocation is the same as dedicated server. Just with some Datacenter nightmares time by time
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Dediated is NOT the same as colocation. Dedicated servers are owned by the provider, then leased to its clients. Colocated servers are owned by the clients who lease space at a data center to house them there, taking advantage of their infrastructure and redundancy.
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Post #11 (permalink)
04-27-2009, 02:56 PM
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HD Guru
Join Date: Aug 2005
Company: Synersis Media, Inc.
Location: Kalamazoo, MI USA
Posts: 642
Status:
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We hold both dedicated & colocated servers. I love the cost savings from colocation and the tax benefits. However, I do not like the cost when having to replace a motherboard or dealing with a hard drive failure.
The item that I look forward to most from a colocation provider is their network and their staff. I like to have some free hands included in the contract which many providers now are giving 2 hours free.
__________________
Hosted solutions provider since 1998 - Serving Houston, Dallas, Atlanta, NJ, and the UK
JaguarPC.com - Managed Hybrid Servers | Managed VPS Hosting | Dedicated Servers
Need a Virtual Private Server, Dedicated Server or Colocation? Contact Me for Special Pricing Today!
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Post #12 (permalink)
04-27-2009, 03:22 PM
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HD Guru
Join Date: Jan 2008
Posts: 632
Status:
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Very nice breakdown there mate. I know that sometimes people get that funny look on their face when you mention which might be better.
<think>And it makes ya go hmm</think>
__________________
Please your clients & thank them from time to time.......they are just like groupies that keep the band going strong.
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Post #13 (permalink)
04-27-2009, 05:15 PM
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HD Guru
Join Date: Aug 2005
Company: Synersis Media, Inc.
Location: Kalamazoo, MI USA
Posts: 642
Status:
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Quote:
Originally Posted by shockym
Very nice breakdown there mate. I know that sometimes people get that funny look on their face when you mention which might be better.
<think>And it makes ya go hmm</think>
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I love seeing peoples reaction to that question. I think many assume dedicated servers are always the way to go. Both of them have their pros & cons. It is amazing at how uneducated people are though.
__________________
Hosted solutions provider since 1998 - Serving Houston, Dallas, Atlanta, NJ, and the UK
JaguarPC.com - Managed Hybrid Servers | Managed VPS Hosting | Dedicated Servers
Need a Virtual Private Server, Dedicated Server or Colocation? Contact Me for Special Pricing Today!
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Post #14 (permalink)
04-28-2009, 06:08 AM
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Registered User
Join Date: Apr 2009
Posts: 8
Status:
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If you have a lot of servers, colo does sound better, and in the long term will be more cost effective.
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Post #15 (permalink)
04-28-2009, 06:58 AM
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CSN-UK | Charlie
Join Date: Mar 2009
Company: Central Server Network-UK
Location: Swindon (UK)
Posts: 470
Status:
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Quote:
Originally Posted by ronweeks
If you have a lot of servers, colo does sound better, and in the long term will be more cost effective.
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This is often the case, long term collocation is often much cheaper however if a large number of hardware advances happen in a short period this can put pressure on providers.
As most if not all providers will show what their server is, processor wise at least. Clients always seem to gel or stick to this information as they automatically link this to performance, especially within the reseller crowd, however as we all know the best processor wont ensure the best performance.
Dedicated does however allow providers to surf the market as per the spec of their servers but does not grant the same allowances as colo, in most cases but does relieve the stress of constant hardware updates, replacing failed equipment etc..
Personally I Colo but that’s down to good relationships with owners of a few small to large hardware companies.
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