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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 ?
It is our view that the best long-term solution is to colocate primary care services with the A&E so that those attending can be triaged to the right care.
A spokesman said: "It is our view that the best longterm solution is to colocate primary care services with the A&E so that those attending can be triaged to the right care.
In addition, when clients colocate in Los Angeles and Dallas, the content is protected against natural disasters and network failures.
The Saddle Bracket's unique, adjustable saddle design fits over existing poles with diameters up to 2 3/4 inches to colocate components such as a battery and antenna with the radio.
That always happens because when you have got procurement people, the subcontractors, suppliers, designers usually want to colocate.
The creation of BEBs in BCTs will help integrate the engineer battalion with its subordinate lettered companies, assuming that installation commanders work to colocate these formations.
And, in one medical building under construction, floors are designed to colocate behavioral health specialists down the hall from primary care physicians.
Businesses often colocate their equipment with a colocation service provider to take benefit of higher bandwidth availability and backup power.
After completing the baseline survey, participants were asked to colocate a radon and an airborne nicotine sampler in their homes for 72 hours.
with goods colocate, with auto parts suppliers moving to Detroit to be
More recently, some organizations have begun to repatriate manufacturing processes to local locations in order to improve demand flexibility, reduce inventory costs and colocate design and manufacturing operations to enhance innovation potential.