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Locating customer equipment in a third-party datacenter. Colocation often refers to Internet service providers (ISPs) or cloud computing providers that furnish the floor space, electrical power and high-speed links to the Internet for a customer's Web servers. Colocation eliminates having to build a secure facility that provides power and air conditioning for company-owned servers. In addition, colocation centers are often located near major Internet connecting points and can provide access to multiple Tier 1 Internet backbones. Although most equipment monitoring is performed remotely by the customer, a colocation datacenter may offer equipment maintenance and troubleshooting arrangements.

Other Colocation Scenarios
The term stems from the telephone industry when one telco would house the equipment of another to facilitate interconnections. Another type of colocation could be a computer distributor or online retailer who locates its warehouse within a PC manufacturer's facility to improve turnaround time to customers. Contrast with managed services. See cloud computing and ping power pipe.

Colocation Earns Millions

High-frequency trading firms are able to colocate their servers next to the servers on the stock exchange floors to reduce travel time in executing orders. According to the July 2, 2010 issue of "THE WEEK" magazine, and as extraordinary as it may seem, studies revealed that shaving one millisecond from every trade could be worth USD $100 million to a high-speed trading firm over the course of a year.
References in periodicals archive ?
Redundancy: Know the steps your colocation center will take in case of an outage, from uninterruptible power supply systems to extra equipment.
Dubai colocation center serves as an interconnection hub for the Middle East as
com)-- coloAZ, a Phoenix-based operator of colocation and datacenters, announced a new server leasing option from their colocation center in Phoenix.
One takeaway from the trip to MaineGeneral was the concept of using a colocation center where all team members can come together on a regular basis to work through the project's ebbs and flows.
To be certified to the ISO/IEC 27001:2005 standard further demonstrates that we have implemented the systems and controls required to enable customers to fully safeguard mission-critical applications residing in our advanced in-region colocation center.
This new connectivity service offers the telecom industry's lowest-level latency for connecting JPX's colocation center, a base for major financial institutions, and the Cermak data center used by Chicago's financial market.
Internet access services provided in the colocation center 1.
s roadmap to providing a premier colocation center and another step toward becoming a prominent leader in today's communications industry.
Ultimate Software, which serves over 1,600 customers representing more than three million employees, signed a multi-year agreement for customized internet connectivity and colocation backup at 1 Vault's state-of-the-art, Category 5 hurricane-rated data colocation center in Fort Lauderdale.
net, a leading provider of colocation, network transport and transit services, launched their new 7,000 square foot colocation center providing business customers with a facility which rivals the best in the business.
A colocation center or carrier hotel is a secure physical site or building where data communications media converge and are interconnected.
net), a colocation center based in Orem, Utah, took delivery this week of Pentadyne's 500th flywheel system, which they purchased through the world's leading large-scale UPS manufacturer, Emerson Network Power/Liebert (www.