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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 ?
The division houses all of its major applications in a co-lo data center in the U.
Almost anything that will work in a self-run or co-lo public cloud is a candidate for a dedicated private cloud.
This feature helps the management drive efficiency more than any others and can be especially significant to the co-lo data center.
In other words, any critical systems that are operational within the hospital need to be duplicated at that co-lo facility.
Some of those service providers like Amazon, they buy co-lo [co-location] and network from us, so we've seen purchases in our own facilities that are of the size.
The Co-Lo design solves a specific problem for Calit2 by allowing professors to protect their investments made possible by grants.
has an estimated 1,000 Co-Lo sites, over 300 ASPs, and nearly 50 declared SSPs.
Using a series of case studies, hands-on demonstrations and white-board sessions, delegates will learn how Endace's multi-application capable systems can enable significant improvements in trading performance and profitability, while simultaneously reducing operational hosting costs in co-lo environments.
SMG has invested in a co-lo data-centre where it has implemented a centralised firewall, internet, AWS DirectConnect and Azure ExpressRoute to serve the whole organisation.
Luckily we've not had to do a restore from one of the remote sites, but we've spun out the VM from the remote to a co-lo to test it out, and we're ready to go.
Cooling a data center or co-lo facility has become a science.
Most recently NTT Facilities chose to resell Federspiel Controls energy management systems worldwide, after the success of its pilot project in which Federspiel Controls reduced cooling energy costs by more than 60% at a co-lo data center managed by NTT America.