Colocation VS Managed VS Cloud hosting? Which One IS Good?

There are many types of web hosting plans available in the market, thus it can be difficult to decide which one would be best for your e-business. Once you’ve chosen a type of hosting plan, then you’ve to consider the the server subtypes of the host plan. Some subtypes have similarities, however it’s essential to carefully explore what each one offers in order to pick the best one that meets your need.

Colocation Hosting

With colocation, organizations own, maintain and use their own equipment. However, they simply rent a rack/space in a colocation facility, sharing the cost of power, communications, cooling and data center floor space with other companies.

Colocation VS Managed VS Cloud hosting

Colocation in the context of startups:

  • Best for the maturing startups that can easily afford acquiring servers and personnel to manage them.
  • Maximum flexibility regarding the hardware used (e.g. fancy servers and storage configurations).
    Requires more management and effort compared to managed and cloud.

Managed Hosting

With managed hosting, you will be using a dedicated server where you will have full administrative control over the server. The web host will provide all of the necessary technical services such as your choice of software installation, server set up and installation, software upgrades, comprehensive customer support 24/7, monitoring including security monitoring 24/7 and more.

Managed in the context of startups:

  • Best for the core infrastructure in a 3 – 25 server environment where a relatively constant amount of horsepower is needed (most startups operate this way) and capital is not as plentiful (renting a server is more capital efficient than buying it when getting started)
  • Cheaper than the cloud on a per-server basis but more expensive than colocation assuming a low cost of capital

Cloud Hosting

With cloud hosting, you rent the equipment, the space and the manpower to manage it and keep it running. No upfront capital costs are involved and services are delivered for a monthly fee. If you need more equipment or technology, just rent more.

Cloud in the context of startups:

  • Good for starting out when server needs are unknown and it’s easy to scale up and down quickly
    Higher latency on average
  • Great for an on-demand infrastructure backup (e.g. replicate the database data but don’t turn on all the other necessary servers unless another facility goes down)
  • Best for environments that have differing scale needs on a regular basis (e.g. imagine you normally need 20 servers but for a few hours each night you need 100 servers to crunch data)
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