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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 ?
With the opening of its second colocation center, COLO-D is now, more than ever, able to serve companies active in the digital economy in all world markets with its new presence in the greater Montreal region, a hub that links Canada's largest carriers to those in the US and abroad.
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.
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.
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.
is a Tier-1 Network Access Point and colocation center that offers the level of security and reliability demanded by the industry.
The United States leads the North America Colocation center data market with over 92% of the market share with 1294 colocation centers.
The company has expanded its offerings to include managed hosting, managed colocation, data storage, remote monitoring and a full complement of managed services in the colocation center or in the client's data center.